Yes, banks will replace damaged money, but the process depends on how damaged it is and which Federal Reserve bank serves your area
If you have bills that are torn, stained, faded, or otherwise damaged, your bank can send them to the Bureau of Engraving and Printing for inspection and replacement. The bureau maintains a Mutilated Currency Division that examines damaged notes and replaces them if at least half of the bill is present and identifiable. You do not need to go directly to the bureau — your bank handles the submission for you.
The process is free, but it takes time. Most replacements arrive within two to four weeks, though some cases take longer if the damage is severe or the bill requires detailed examination. The key limitation is that you must be able to show that the damage happened by accident — wear and tear, water damage, fire, or accidental destruction — not that you intentionally defaced the currency.
Key Takeaways
- Your bank will submit damaged currency to the Federal Reserve on your behalf at no cost to you.
- The Bureau of Engraving and Printing replaces bills if more than half of the note is present and identifiable.
- Replacement typically takes two to four weeks from the time your bank sends the damaged bills.
- Intentionally defaced or mutilated currency for profit or fraud is a federal crime and will not be replaced.
- Some damage — like bills destroyed in a house fire or flood — may require additional documentation or proof of loss.
What counts as damage the Federal Reserve will replace
The bureau replaces currency that is damaged through accident or normal wear. This includes bills that are torn, burned, water-damaged, faded, or stained. If a bill has been run through a washing machine, exposed to fire, or damaged in a flood, the bureau will examine it and replace it if enough of the bill remains to verify its denomination and serial number.
The standard rule is that at least 51 percent of the bill must be present. If you have a bill that is half torn away but the remaining half is clearly identifiable as a $20 bill, for example, the bureau will replace it. If less than half remains, or if the remaining portion cannot be identified as a specific denomination, replacement is unlikely.
Wear and tear from normal circulation — fading, small tears, creases — usually does not may have access to for replacement because the bill is still usable. The bureau focuses on currency that is genuinely damaged and no longer fit for circulation.
How to submit damaged currency through your bank
Walk into any branch of your bank with the damaged bills and explain that you want them sent to the Federal Reserve for replacement. The teller will place the bills in a special envelope or package marked for the Mutilated Currency Division. Your bank will send the package to the Federal Reserve bank that serves your region.
You do not need an account at the bank to submit currency, though most banks will ask for your name and contact information. Some banks may ask you to fill out a simple form describing how the damage occurred. Keep a record of what you submitted and the date, in case you need to follow up.
If you have a large amount of damaged currency or if the damage is severe, call your bank ahead of time to ask whether they have any special procedures. Most branches handle this routinely, but some smaller branches may need to send your request to a processing center.
Timeline for receiving replacement bills
Once your bank submits the damaged currency, the Federal Reserve typically processes the request within two to four weeks. The bureau examines the bills, verifies the denomination and serial numbers, and either approves replacement or denies the claim. If approved, new bills are sent back to your bank, which notifies you to pick them up.
If the damage is extensive or the serial numbers are difficult to read, the examination may take longer — sometimes six to eight weeks. The bureau will contact your bank if they need additional information or clarification about the damage.
You will not receive the exact same bills back. The bureau destroys the damaged currency and issues new bills of the same denomination in its place. The new bills are indistinguishable from any other currency in circulation.
Damage from specific events: fires, floods, and disasters
If your currency was damaged in a house fire, flood, or other disaster, the process is the same, but you may need to provide additional documentation. The bureau may ask for a police report, insurance claim, or other proof that the damage was accidental and not intentional.
For currency damaged in a natural disaster, some banks will expedite the submission, and the Federal Reserve may prioritize the claim. If you lost currency in a disaster, contact your bank and explain the circumstances. They can advise you on what documentation to gather.
If the currency was in a safe deposit box or stored in your home and was destroyed, the bureau will still examine it, but you should be prepared to explain how it was damaged. Proof of the disaster — news reports, FEMA documentation, or insurance records — can help support your claim.
What the Federal Reserve will not replace
The bureau will not replace currency that was intentionally defaced, mutilated, or destroyed. If you deliberately tore up a bill, burned it, or altered it, the bureau will deny the claim. Intentionally mutilating U.S. currency is also a federal crime under 18 U.S.C. § 333, punishable by fines up to $100 and up to six months in prison.
The bureau also will not replace currency if less than half of the bill is present, if the denomination cannot be determined, or if the serial numbers are completely illegible. In these cases, the damaged bill is considered a total loss.
If you submit currency that appears to have been intentionally damaged, the bureau may report it to the Secret Service. This is rare, but it is a possibility if the damage pattern suggests deliberate destruction.
Alternatives if your bank cannot help
If your bank refuses to submit the currency or if you do not have a bank account, you can contact the Federal Reserve bank that serves your region directly. The Federal Reserve maintains a list of regional banks on its website, and you can call or visit in person to ask about submitting damaged currency.
You can also mail damaged currency directly to the Bureau of Engraving and Printing's Mutilated Currency Division, though this is slower and requires you to package and insure the shipment yourself. Most people find it easier to go through their bank.
If you have a very large amount of damaged currency or if the damage is unusual, contact the Federal Reserve bank in your region by phone before submitting. They can advise you on the best way to proceed and let you know if your situation requires special handling.
Frequently Asked Questions
How much damaged money can I submit at once?
There is no official limit on the amount of damaged currency you can submit. However, if you have a large quantity, your bank may ask you to submit it in batches or may require additional documentation. Contact your bank first if you have more than a few hundred dollars in damaged bills.
Will I get the same bills back?
No. The Federal Reserve destroys the damaged bills and issues new currency of the same denomination in their place. You will receive new bills that are indistinguishable from any other money in circulation.
What if the bank says they cannot help me?
Contact the Federal Reserve bank that serves your region directly. You can find the regional bank's phone number and address on the Federal Reserve's website. You can also mail damaged currency to the Bureau of Engraving and Printing, though this takes longer than going through a bank.
Can I submit damaged coins?
No. The Bureau of Engraving and Printing handles only paper currency. Damaged coins should be taken to a coin dealer or submitted to the U.S. Mint, though the Mint does not replace circulated coins. Coin dealers may purchase damaged coins for their metal content.
Is there a fee for replacing damaged money?
No. The Federal Reserve replaces damaged currency at no cost. Your bank will not charge you, and the Federal Reserve does not charge a fee for the examination or replacement.