Yes, banks will replace torn money, but the Federal Reserve has strict rules about what counts as replaceable
If you have cash that is torn, stained, faded, or otherwise damaged, you can take it to your bank and request a replacement. Your bank will not charge you for this service. However, the Federal Reserve — which sets the standard for all U.S. banks — will only replace bills if more than half of the original bill remains intact, or if you can prove the missing portion was destroyed and not lost to circulation.
The key word is more than half. If you have 51% or more of a bill, your bank can send it to the Federal Reserve's Currency Redemption Center for replacement. If you have less than half, the Federal Reserve will not replace it, and neither will your bank. This rule exists because the Federal Reserve needs to verify that the bill was actually destroyed, not simply removed from circulation by someone trying to commit fraud.
The process is slower than a normal withdrawal. Your bank will take the damaged bill, document it, and send it to the Federal Reserve. Replacement can take anywhere from a few weeks to several months, depending on the volume of requests and the condition of the bill. During that time, your bank will not credit your account — you are simply exchanging damaged currency for new currency.
Key Takeaways
- Your bank will replace torn or damaged bills at no charge if more than half of the bill is present and intact.
- If less than half of the bill remains, the Federal Reserve will not replace it, and your bank cannot override that rule.
- Replacement takes several weeks to months because your bank must send the damaged bill to the Federal Reserve's Currency Redemption Center.
- You do not need to be a customer of that bank to request a replacement — any bank will accept damaged currency for redemption.
What "More Than Half" Actually Means
The Federal Reserve uses a specific test: if you can see more than 50% of the bill's surface area, and the remaining portion is enough to identify the bill's denomination and serial number, it qualifies for replacement. This means a bill that is torn in half but both halves are present will be replaced. A bill that is missing a corner, or has a hole punched through it, will also be replaced as long as more than half remains.
Stains, fading, and discoloration do not disqualify a bill. If a $20 bill is water-damaged, bleached, or marked with ink, but more than half of it is still there and readable, your bank will replace it. The Federal Reserve is looking for physical presence of the bill material, not perfect condition.
If you have a bill that is burned, and only a charred fragment remains, the Federal Reserve will not replace it unless you can provide evidence that the rest of the bill was destroyed. This is where the "proof of destruction" rule comes in. If your house burned down and you lost cash in the fire, you may be able to replace it by providing documentation of the fire — a fire department report, insurance claim, or police report. Without that proof, a partial burned bill is treated the same as any other bill with less than half remaining.
How to Submit Damaged Money to Your Bank
Walk into any branch of your bank with the damaged bill and ask to speak with a teller or manager about currency redemption. You do not need an account at that bank. Tell them the bill is damaged and you want it replaced. The teller will examine it, determine whether it meets the "more than half" threshold, and either accept it for redemption or decline it.
If the teller accepts it, they will fill out a Currency Redemption Form (also called a Mutilated Currency Form). This form documents the bill's serial number, denomination, condition, and the date of submission. You will receive a receipt. The bank will then send the damaged bill to the Federal Reserve's Currency Redemption Center in your region.
Do not tape the bill back together or try to repair it yourself. The Federal Reserve prefers to receive damaged bills in their original condition so they can verify the damage and confirm that more than half is present. If you tape it, the tape may obscure part of the bill and make it harder for the Federal Reserve to process.
Timeline and What Happens After You Submit
After your bank submits the damaged bill, the Federal Reserve's Currency Redemption Center will receive it within one to two weeks. The center will then examine the bill to confirm it meets the replacement threshold. If it does, they will send new currency to your bank. If it does not, they will return the damaged bill to your bank, and your bank will contact you to let you know the replacement was denied.
The entire process typically takes four to eight weeks, though it can be faster or slower depending on the Federal Reserve's workload and mail delivery times. You will not receive a phone call or email update — your bank will only contact you if the replacement is denied. If you want to check on the status, you can call your bank's customer service line and reference the receipt number from your Currency Redemption Form.
Once the Federal Reserve sends replacement currency to your bank, the bank will hold it for you. You can pick it up in person at any branch, or ask the bank to deposit it into your account if you have one there. If you do not have an account, you will need to pick it up in person with your receipt.
What Happens If Your Bill Is Rejected
If the Federal Reserve determines that your bill has less than half remaining, or if you cannot provide proof of destruction for a severely damaged bill, the redemption will be denied. Your bank will return the damaged bill to you. At that point, the bill is worthless — you cannot spend it, and no bank will replace it.
This is why the "more than half" rule matters. If you have a bill that is 49% intact, you have lost money. There is no appeal process, no exception, and no alternative route. The Federal Reserve's decision is final.
If you believe the Federal Reserve made an error — for example, if you submitted a bill that clearly had more than half remaining — you can ask your bank to contact the Federal Reserve on your behalf. Provide your receipt number and explain why you think the decision was wrong. The Federal Reserve will review the case, but reversals are rare.
Special Cases: Burned, Buried, or Destroyed Currency
If your cash was destroyed in a fire, flood, or other disaster, you may be able to replace it even if less than half remains. The Federal Reserve has a process for this, but it requires documentation. You will need a police report, fire department report, insurance claim, or other official record showing that the currency was destroyed in the incident.
Bring the damaged currency and the documentation to your bank. The bank will submit both to the Federal Reserve along with a statement explaining the circumstances. The Federal Reserve will then investigate. If they confirm that the currency was destroyed in a documented disaster, they may replace it even if only fragments remain.
This process takes longer — often three to six months — because the Federal Reserve must verify the disaster and confirm that the currency was actually destroyed in it. Do not expect a quick resolution. Keep copies of all documentation you submit, and follow up with your bank every month to check on the status.
Counterfeit or Suspicious Bills
If your bank suspects that a damaged bill is counterfeit, they will not submit it for replacement. Instead, they will keep it and may contact the U.S. Secret Service. Counterfeiting is a federal crime, and banks are required to report suspected counterfeit currency to law enforcement.
If this happens, your bank will tell you that the bill cannot be replaced and explain why they suspect it is counterfeit. You will not receive the bill back. If you believe the bill is genuine, you can contact the U.S. Secret Service directly to dispute the information, but this is rare and difficult to overturn.
Frequently Asked Questions
Can I replace a bill that is just faded or discolored?
Yes, as long as more than half of the bill is present and you can still identify it. Fading and discoloration do not disqualify a bill. Bring it to your bank and ask for a currency redemption.
What if I lost half of a bill and cannot find it?
If you have less than half of the bill and no documentation of how it was destroyed, the Federal Reserve will not replace it. You have lost the money. The "proof of destruction" exception only applies to documented disasters like fires or floods.
Do I have to be a customer of the bank to replace damaged money?
No. Any bank will accept damaged currency for redemption, whether or not you have an account there. However, if you do not have an account, you will need to pick up the replacement currency in person with your receipt.
How long does it take to get replacement money?
The process typically takes four to eight weeks from the time you submit the damaged bill to your bank. The Federal Reserve's Currency Redemption Center processes requests in batches, so timing varies.
What if the bank says my bill does not may have access to?
If the teller says the bill has less than half remaining, they are following Federal Reserve rules and cannot override that decision. You can ask to speak with a manager, but the answer will be the same. The bill cannot be replaced.