Yes, banks will replace damaged U.S. currency, but the process depends on how damaged the bills are and which federal agency handles the claim

If your cash is torn, stained, faded, or partially destroyed, your bank can send it to the Bureau of Engraving and Printing (BEP) for inspection and replacement. The BEP is the federal office that decides whether damaged bills meet the threshold for replacement. You do not pay a fee for this service, and the bank does not charge you either.

The catch is timing and proof. If more than half of a bill is missing or destroyed, replacement is straightforward. If less than half is gone or the damage is unclear, the BEP may deny the claim. You will also need to explain how the damage happened—fire, water, mold, animal damage, or wear and tear all matter to the decision.

The entire process typically takes four to twelve weeks from the moment your bank sends the bills to the BEP until you receive replacement currency. During that time, you have no access to the money.

Key Takeaways

  • Take damaged bills to your bank and ask them to submit a claim to the Bureau of Engraving and Printing; the bank handles the paperwork and shipping at no cost to you.
  • Bills with more than half of the note missing or destroyed are almost always replaced; bills with less than half missing may be denied.
  • You must be able to describe how the damage occurred—fire, water, mold, or other specific cause—because the BEP uses this to verify the claim is legitimate.
  • Replacement takes four to twelve weeks, so plan for that money to be unavailable during the review period.
  • Severely damaged coins go to the U.S. Mint instead of the BEP, and your bank can direct you to the correct process for each type of currency.

How to start a damaged currency claim at your bank

Walk into your bank with the damaged bills and tell the teller you want to file a claim for damaged currency. Do not try to spend the bills or deposit them as normal—tellers are trained to flag damaged notes and will refuse them anyway. Bring the bills in a clean envelope or bag to prevent further damage during handling.

The teller will ask you to describe what happened: fire damage, flood, mold, rodent damage, chemical exposure, or simple wear. Be specific. "My house flooded" is better than "it got wet." The bank records this information on the claim form they send to the BEP.

You do not need to fill out any paperwork yourself. The bank completes the Currency Damage Claim Form (also called a mutilated currency claim), packages the bills securely, and mails them to the BEP's Mutilated Currency Division. The bank keeps a copy of the claim for its records and gives you a receipt showing what you submitted and the date.

What the Bureau of Engraving and Printing looks for

The BEP examines each bill to determine whether enough of the original note remains to prove its value and authenticity. The key threshold is more than half of the bill must be present. If you have more than 50 percent of the note—even if it is scorched, stained, or torn—replacement is usually approved.

If less than half the bill is present, the BEP will deny the claim unless you can provide strong supporting evidence. For example, if you have a fire-damaged bill and a bank statement showing you withdrew that exact amount in cash the day before the fire, the BEP may replace it anyway. Receipts, photographs of the damage, insurance reports, or police reports can all help prove the claim is legitimate.

The BEP also checks whether the remaining portion shows enough of the security features—the watermark, security thread, color-shifting ink—to rule out fraud. Counterfeits are rare in damaged currency claims, but the BEP screens for them as part of the process.

Timeline and what happens while your claim is pending

After your bank mails the damaged bills to the BEP, you will not hear anything for two to four weeks. The BEP receives thousands of claims and processes them in the order they arrive. Once your package reaches the Mutilated Currency Division, an examiner inspects the bills and makes a decision.

If the claim is approved, the BEP prints replacement bills and mails them to your bank. Your bank then deposits them into your account or holds them for you to pick up, depending on your bank's policy. This second mailing takes another one to two weeks. Total time from submission to replacement is usually four to twelve weeks.

If the claim is denied, the BEP mails the original damaged bills back to your bank along with a letter explaining why. Your bank will contact you to let you know the claim was rejected. At that point, the damaged bills are yours again, but they still cannot be spent—you own currency that has no face value.

Damaged currency that does not may have access to for replacement

Some damage is too severe or too ambiguous for the BEP to approve replacement. Bills that have been burned to ash, dissolved in chemicals, or reduced to fragments smaller than a postage stamp will be denied because there is no way to verify the original denomination or authenticity.

Bills damaged by normal wear—faded ink, small tears, creases—are also not replaced. The BEP considers normal circulation wear a cost of using physical currency. Only damage from a specific event (fire, flood, mold, rodent damage, or similar) qualifies.

If your claim is denied and you believe the decision is wrong, you can ask your bank to request a reconsideration. Include any additional evidence—photographs, insurance documentation, or a written explanation of the circumstances. The BEP will review the case again, but reversals are uncommon.

Damaged coins and what to do instead

U.S. coins damaged beyond circulation go to the U.S. Mint, not the BEP. If you have coins that are bent, corroded, melted, or otherwise unusable, your bank can still help, but the process is different. Ask your teller whether your bank has a direct relationship with a Mint facility or whether you need to mail the coins yourself.

Some banks do not accept damaged coins at all and will direct you to contact the U.S. Mint's Customer Care line at 1-800-USA-MINT. The Mint can tell you whether your coins are worth replacing and what documentation you need to send.

What to do if your bank refuses to submit the claim

Most banks will submit a damaged currency claim without question, but some smaller banks or credit unions may not have the process in place. If your bank says they cannot help, you have two options: ask to speak with a manager and request they contact the BEP directly, or submit the claim yourself.

You can mail damaged bills directly to the Bureau of Engraving and Printing, Mutilated Currency Division, P.O. Box 37048, Washington, D.C. 20013. Include a letter describing the damage and how it occurred, and keep a copy for your records. The BEP will process your claim the same way it would if your bank submitted it, though the timeline may be slightly longer because you are not using an established banking channel.

Submitting the claim yourself means you will not have a bank receipt to prove you sent the bills, so photograph them before you mail them and use certified mail with tracking. This protects you if the package is lost in transit.

Frequently Asked Questions

Can I get my money back faster if I pay a fee?

No. The BEP does not offer expedited processing for any fee, and no private service can speed up a federal currency claim. The four- to twelve-week timeline is standard for all claims. If someone offers to replace your damaged money faster for a fee, they are running a scam.

What if I damaged the money myself on purpose?

Intentionally destroying U.S. currency is illegal under federal law, but submitting a claim for money you deliberately damaged is not automatically prosecuted. The BEP does not investigate the intent behind most claims. That said, if the damage is obviously intentional (bills cut in half, burned in a pattern, or shredded) and you admit it, your claim will be denied and you may face legal consequences.

Do I have to use my own bank, or can I go to any bank?

You should use the bank where you have an account, because that bank will deposit the replacement money into your account once the BEP approves the claim. If you go to a different bank, they may refuse to process a claim for someone who is not their customer, or they may require you to open an account first.

What if the BEP says the bills are counterfeit?

If the BEP determines that the damaged bills are counterfeit, they will not replace them and will notify the Secret Service. You will not be prosecuted for possessing counterfeit currency if you obtained it unknowingly and are trying to turn it in through official channels. The bank and BEP understand that damaged bills can be hard to verify, and good-faith claims are treated differently from deliberate fraud.

Can I claim damaged money if I found it, not earned it?

Yes. The BEP does not require you to prove ownership or explain where the money came from. If you found damaged currency and want to turn it in for replacement, your bank will process the claim the same way. The only exception is if the money is evidence in a crime—in that case, law enforcement may hold it as evidence and you cannot file a claim until the case is closed.