Yes, banks will exchange torn or damaged currency, but the process depends on how damaged the bill is and which bank you use.

If a bill is still recognizable and you can see both sides clearly, most banks will swap it for a fresh one at no charge during a regular transaction or by asking a teller. Bring the damaged bill to your bank, show it to a teller, and they can usually hand you a replacement from their cash drawer on the spot. This takes minutes.

If the bill is badly damaged—torn into pieces, burned, water-soaked, or so faded you cannot read the denomination—your bank cannot replace it themselves. Instead, they send it to the Bureau of Engraving and Printing, a division of the U.S. Department of the Treasury. That process takes weeks or months, and you may not get the full value back if the damage is severe enough that the bill cannot be authenticated.

Banks do not charge you for this service, but you need to understand the difference between a quick teller swap and a Treasury claim, because one happens in minutes and the other can take two to three months.

Key Takeaways

  • A bill that is torn but still shows both sides clearly can be exchanged at your bank's teller window during normal business hours with no wait.
  • Severely damaged bills—burned, soaked, or in pieces—must be sent to the Bureau of Engraving and Printing and take two to three months to process.
  • You will not receive money back until the Treasury verifies the bill is genuine and determines how much of it is recoverable.
  • Different banks have different policies on how damaged a bill can be before they refuse to swap it themselves; call ahead if the damage is significant.

When a bank will swap a damaged bill on the spot

A bill qualifies for an immediate teller exchange if it is still in one piece, both sides are visible, and the denomination is clear. This includes bills that are creased, slightly torn at an edge, faded from washing, or marked with pen. The teller simply pulls a fresh bill from the drawer and hands it to you.

You do not need an account at the bank to do this. Walk in during business hours, ask to speak to a teller, and show them the bill. Some banks may ask for ID, but most will not. There is no charge, and it takes under five minutes.

If you have a large number of damaged bills—say, fifty torn ones—the teller may ask you to come back at a slower time or may process them more slowly, but they will still do it. Be direct about the quantity when you arrive so the teller knows what to expect.

When your bank sends the bill to the Treasury

If a bill is torn into multiple pieces, burned, water-damaged so badly the ink has run, or missing a significant portion, your bank will not replace it from the drawer. Instead, they fill out a form called the Mutilated Currency Division claim form and send the damaged bill to the Bureau of Engraving and Printing in Washington, D.C.

The Treasury examines the bill to confirm it is genuine U.S. currency and determines what percentage of the original bill is still present. If more than half of the bill remains and can be authenticated, you receive the full value. If less than half remains, you receive nothing. The process typically takes eight to twelve weeks, though it can stretch longer if the damage makes authentication difficult.

Your bank will not give you cash upfront while the claim is being processed. You have to wait for the Treasury's decision. Some banks will let you file the claim yourself if you prefer not to go through them, but most handle it as a courtesy to customers.

How to prepare damaged money for a bank visit

For a quick teller swap, bring the bill as is. Do not tape it, glue it, or try to repair it yourself—tellers prefer to see the damage clearly so they can decide whether to swap it or send it to the Treasury.

If the bill is in pieces, place the pieces in an envelope or small bag so they do not scatter. Write your name and phone number on the envelope. If you are filing a Treasury claim, your bank will need a way to contact you with the result.

If the bill is wet, let it dry completely before bringing it to the bank. Wet currency can stick together and is harder for tellers to handle. Lay it flat on a clean surface and let it air-dry for at least 24 hours.

What happens if your bank refuses to help

Some banks, particularly small branches or those with strict policies, may refuse to process damaged currency claims. If your bank says no, you can file a claim directly with the Bureau of Engraving and Printing without going through a bank.

Visit the Bureau's website or call their Mutilated Currency Division at 1-800-696-1220. They will send you a claim form and instructions for mailing the damaged bill. You include a letter explaining what happened to the bill—whether it was burned, torn, water-damaged, or something else—and mail everything to the address they provide. The process is the same as if your bank had sent it: the Treasury examines it, determines authenticity, and sends you a check if the claim is approved.

Filing directly takes slightly longer because the mail adds time on both ends, but it is free and does not require a bank account or a relationship with any financial institution.

Damaged coins and special cases

Banks do not exchange damaged coins the same way they do bills. A coin that is bent, dented, or worn smooth is still legal tender and has no special value to the bank. You can spend it or deposit it normally. The only exception is if a coin is so damaged it cannot be identified as U.S. currency—in that case, it has no value and cannot be exchanged.

If you have a rare or collectible coin that is damaged, a bank will not help you. Coin dealers and numismatic services handle those separately, and the value depends on rarity and collector demand, not on the face value stamped on it.

For paper currency that is counterfeit or suspected counterfeit, do not bring it to a bank. Contact the U.S. Secret Service or the FBI instead. Banks are required to report suspected counterfeit bills to federal authorities, and you may face questions about where the bill came from.

Frequently Asked Questions

How torn does a bill have to be before a bank won't swap it?

If the bill is still in one piece and both sides are visible, most banks will swap it. Once it is torn into separate pieces or missing a large section, the bank will send it to the Treasury instead. Call your bank ahead of time if you are unsure—policies vary by branch.

Can I get my money back while the Treasury is reviewing my claim?

No. You have to wait for the Treasury's decision, which takes eight to twelve weeks. The bank does not advance you cash while the claim is pending. If you need the money urgently, you cannot use this process.

What if the Treasury says my bill is not real?

If the bill fails authentication, you receive nothing. The Treasury keeps the bill and sends you a letter explaining why it was rejected. You cannot appeal the decision or request a second review.

Do I need to be a customer of the bank to exchange damaged money?

No. You can walk into any bank and ask a teller to swap a damaged bill, even if you do not have an account there. Some banks may ask for ID, but most will not. For Treasury claims, you can file directly without using a bank.

What if I have a bill that is half burned?

If more than half of the bill remains and is identifiable, the Treasury will likely approve your claim for the full value. If less than half remains, you get nothing. Bring it to your bank or file a direct claim with the Bureau of Engraving and Printing to find out.