Yes, banks will replace damaged U.S. currency, but the process depends on how damaged it is and which federal agency handles it
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 need to go directly to the BEP yourself — your bank handles the submission on your behalf.
The key factor is whether enough of the bill remains to identify it as genuine U.S. currency and determine its denomination. If more than half of the bill is present and identifiable, replacement is usually straightforward. If less than half remains, the BEP may deny the claim, though they review each case individually.
The process is free. You will not pay a fee to your bank or the BEP for this service. However, there is no set timeline — replacement can take weeks or months depending on the BEP's workload.
Key Takeaways
- Bring damaged bills to your bank, which will submit them to the Bureau of Engraving and Printing for evaluation at no cost to you.
- Bills with more than half of the original present are usually replaced; bills with less than half may be denied.
- The BEP does not replace money damaged by fire, water, or mold if the damage makes the bill unidentifiable or uncountable.
- Replacement typically takes several weeks to several months, so plan accordingly if you need the cash urgently.
- Some banks may ask you to fill out a form or provide a written statement explaining how the money was damaged.
What counts as damage the BEP will replace
The BEP replaces bills that are torn, creased, faded, stained, or worn from normal circulation. They also replace bills damaged by accidental events — a bill that went through the washing machine, was partially burned in a fireplace, or was exposed to water in a flood may be replaceable if enough of it survives.
The critical question is whether the bill can still be identified as genuine U.S. currency and its denomination determined. If the serial numbers are visible, or if enough of the design remains to confirm it is real, the BEP will usually approve replacement. Partial bills — those missing a corner or edge — are often replaced if the missing portion is small enough that the bill's value is clear.
Mutilated bills, meaning those so damaged that they cannot be identified or counted, are handled differently. The BEP may still replace them, but the process is slower and requires more documentation from you and your bank.
What the BEP will not replace
The BEP will not replace bills that are counterfeit, altered, or intentionally destroyed. If you deliberately burned, cut, or defaced a bill, the BEP will deny the claim. They also will not replace bills that are so degraded — by mold, extreme heat, or chemical exposure — that they cannot be authenticated as genuine U.S. currency.
Bills damaged by intentional acts, such as bills glued into a scrapbook or bills that were part of a craft project, fall outside the replacement program. The BEP distinguishes between accidental damage and deliberate destruction, and only accidental damage qualifies.
Foreign currency is not replaced by the BEP. If you have damaged euros, pounds, or other foreign money, you would need to contact the central bank of that country or a currency exchange service.
How to submit damaged money to your bank
Walk into your bank with the damaged bills and explain the situation to a teller or customer service representative. Most banks have a process for this and will not turn you away. Ask them to submit the bills to the BEP for evaluation. Some banks may ask you to fill out a simple form stating how the damage occurred and when you discovered it.
Do not attempt to tape, glue, or repair the bills yourself before bringing them to the bank. The BEP needs to see the damage in its original state to make an accurate assessment. If you have already tried to repair them, let your bank know.
If your bank is unfamiliar with the process, you can provide them with the BEP's contact information. The BEP's Mutilated Currency Division handles all damaged bill submissions, and banks can reach out directly if they have questions about how to proceed.
Timeline and what to expect after submission
After your bank submits the damaged bills, the BEP will inspect them and make a information. This process typically takes four to twelve weeks, though it can be longer if the BEP's workload is high or if the damage is severe enough to require additional analysis.
Your bank should provide you with a receipt or reference number when they submit the bills. Keep this number so you can follow up if you do not hear back within a reasonable timeframe. Some banks will contact you when the BEP makes a decision; others will wait for you to ask.
If the BEP approves the claim, your bank will receive new bills in the same denomination and deposit them into your account, or provide them to you in cash. If the claim is denied, your bank will return the damaged bills to you, and you will not receive replacement currency.
Special cases: fire, water, and severe damage
If your money was damaged in a fire, flood, or other disaster, the BEP still handles replacement, but the process may take longer. Bring whatever remains of the bills to your bank. Even if the bills are charred, waterlogged, or partially disintegrated, the BEP will attempt to identify and count them.
In cases of severe damage, the BEP may ask your bank to provide additional documentation — such as a police report, insurance claim, or written statement from you describing the incident. This helps the BEP verify that the damage was accidental and not intentional destruction.
If you lost money in a disaster and have no physical bills to submit, the BEP cannot replace it. Replacement requires the actual damaged currency, not just a claim that money was lost.
When your bank cannot help
Some banks, particularly small branches or credit unions, may not be set up to handle mutilated currency submissions. If your bank declines or says they do not know how to proceed, you have two options: ask to speak with a manager or contact the BEP directly.
The BEP's Mutilated Currency Division accepts submissions by mail. You can package the damaged bills securely, include a written explanation of the damage, and send them to the BEP's office in Washington, D.C. The BEP's website lists the current mailing address and provides instructions for direct submission. This route takes longer than going through a bank, but it is an option if your bank will not help.
Federal Reserve Banks also accept damaged currency submissions, so if you have a relationship with a Federal Reserve Bank in your region, you can contact them as well.
Frequently Asked Questions
What if only a small corner of the bill is missing?
If more than half of the bill is present and identifiable, the BEP will usually replace it. A missing corner does not automatically disqualify a bill. Bring it to your bank and let them submit it; the BEP will make the final information based on whether the denomination and authenticity can be confirmed.
Can I get replacement money faster if I pay a fee?
No. The BEP does not offer expedited processing for a fee, and legitimate banks do not charge for this service. If someone offers to replace your damaged money for a fee, they are running a scam. Always use your own bank or contact the BEP directly.
What happens if the BEP says my money is counterfeit?
If the BEP determines that the bills are counterfeit, they will not replace them and will likely report the finding to law enforcement. You should not attempt to spend counterfeit currency. If you received counterfeit bills unknowingly, report it to your local police or the U.S. Secret Service.
Do I need to report damaged money to my insurance company?
Most homeowners or renters insurance policies do not cover accidental damage to cash. However, if the damage occurred as part of a covered event — such as a fire or flood — your insurance may cover the loss. Check your policy or contact your insurance agent. The BEP replacement process is separate from any insurance claim you might file.
What if my bank loses the damaged bills I gave them?
This is rare, but if it happens, your bank is responsible for the loss. Ask your bank for a receipt when you submit the bills, and follow up regularly using the reference number. If your bank cannot locate the bills or provide documentation of submission to the BEP, contact your bank's customer service department or file a complaint with your state's banking regulator.