Banks will usually accept ripped money, but the condition and the amount of damage matter
A bank will take torn bills if more than half of the bill is present and intact enough to identify. If you have a bill that is ripped in half but both halves are there, most banks will accept it without question at face value. If large sections are missing or the bill is so damaged that it cannot be identified, the bank will likely refuse it or send it to the Federal Reserve for inspection.
The key rule is the majority rule: if more than 50 percent of the bill remains and is identifiable, a bank teller can process it as normal currency. If 50 percent or less remains, the bill is considered unfit for circulation, and the bank will not accept it as payment. Instead, they may send it to the Federal Reserve's Currency Examination Division, which can replace it if enough of the bill survives for identification.
You do not need to do anything special to prepare a damaged bill before taking it to the bank. Simply bring it to the teller, explain that it is damaged, and they will either accept it or tell you what happens next. There is no fee for this process, and you will receive a replacement bill or credit to your account.
Key Takeaways
- Banks accept torn bills if more than half of the bill is present and you can still identify the denomination and serial number.
- If 50 percent or less of the bill remains, the bank will not accept it as regular currency and will send it to the Federal Reserve instead.
- The Federal Reserve's Currency Examination Division can replace severely damaged bills if enough remains to confirm the denomination.
- There is no charge to replace damaged currency through your bank or the Federal Reserve.
- Coins that are damaged, bent, or worn are handled differently than paper money and may not be accepted by banks.
What counts as too damaged to accept
A bill that is wet, faded, stained, or creased will still be accepted by a bank as long as the majority of it is there. Banks see damaged bills every day—they come from wallets, pockets, washing machines, and cash registers. A teller will not refuse a bill simply because it looks worn.
The line is drawn when the bill becomes unidentifiable or when a large piece is actually missing. A bill that has been burned, dissolved, or torn into multiple pieces may fall into this category. If you have a bill where you cannot clearly see both sides or where the serial numbers are gone, bring it to the bank and let the teller decide. They have guidelines and can tell you on the spot whether it will be accepted or sent to the Federal Reserve.
How the Federal Reserve handles severely damaged bills
If a bank receives a bill that is too damaged to circulate but still identifiable, they will send it to one of the Federal Reserve Banks, which maintains a Currency Examination Division. This division inspects the bill to confirm its denomination and authenticity. If they can verify what it is, they will issue a replacement bill to your bank, which will then credit your account.
This process takes time—usually several weeks to a few months, depending on the Federal Reserve's workload. You will not receive cash immediately, but you will receive credit for the full value of the bill. Your bank can tell you the expected timeline when they send the bill in.
You can also send damaged currency directly to the Federal Reserve yourself if you prefer not to go through your bank. The Federal Reserve's Bureau of Engraving and Printing accepts mail-in requests for currency replacement. You will need to include a letter explaining the damage and your contact information. Again, there is no fee, and you will receive a replacement bill or check in the mail.
Coins that are damaged or worn
Damaged coins are treated differently than paper money. Banks will accept coins that are worn smooth or discolored, but they will refuse coins that are bent, dented, or have pieces missing. A coin that has been run over by a car or melted is not legal tender and cannot be deposited.
If you have damaged coins, you can bring them to a bank and ask whether they will accept them. Some banks will take them and send them to the Federal Reserve; others will refuse them outright. The Federal Reserve does not have a formal replacement program for coins the way it does for currency, so your options are more limited. You may be able to exchange damaged coins at a coin dealer or numismatic shop, but you will likely receive less than face value.
What to do before you go to the bank
Do not attempt to tape, glue, or repair a damaged bill yourself. Banks will refuse a bill that has been altered or repaired with tape or adhesive, because it raises questions about authenticity and makes it harder to verify. Bring the bill in its damaged state, and let the bank handle it.
If you have multiple damaged bills, bring them all together in an envelope or bag. Tell the teller that you have damaged currency and ask them to inspect it. They will sort through it, accept what they can, and tell you what will be sent to the Federal Reserve. You do not need to call ahead or make an appointment—this is a routine transaction.
Frequently Asked Questions
Can I deposit a ripped bill through an ATM?
No. ATMs reject damaged bills because the machine cannot read or verify them. You must bring damaged currency to a bank teller in person. The teller can inspect it and decide whether to accept it or send it to the Federal Reserve.
What if I only have half of a bill?
If you have exactly half of a bill and the other half is missing, the bank will not accept it as regular currency. You can send it to the Federal Reserve with a letter explaining what happened. They will inspect it, and if they can verify the denomination, they may replace it—but there is no may provide.
How long does it take to get a replacement bill from the Federal Reserve?
If your bank sends the bill in, replacement usually takes two to four weeks, though it can take longer during busy periods. If you mail it directly to the Federal Reserve, allow four to eight weeks. You will receive a replacement bill or a check for the full value.
Will the bank charge me to replace damaged money?
No. There is no fee to deposit damaged currency or to have it replaced by the Federal Reserve. This is a free service offered by banks and the Federal Reserve.
What if my bill was damaged in a flood or fire?
Bring what remains to your bank. Even if only fragments survive, the Federal Reserve may be able to identify and replace it if enough of the bill is present. The process is the same as for any other damaged currency—no special documentation is needed unless the bank asks for it.