Banks will usually accept ripped money, but the condition and the amount of damage matter
If a bill is torn, stained, or otherwise damaged, your bank will take it—but they may not hand you a replacement on the spot. Most banks send damaged currency to the Federal Reserve, which examines it and decides whether to replace it. If more than half the bill is present and identifiable, the Federal Reserve will replace it. If less than half remains, you get nothing.
The process takes time. Your bank may hold the damaged bill for a week or longer while it's sent to a Federal Reserve processing center. Some banks will give you a receipt and credit your account while they wait for confirmation; others will not. The outcome depends on your bank's internal policy and how damaged the bill actually is.
Key Takeaways
- Banks accept damaged currency and send it to the Federal Reserve for evaluation, but you may not get a replacement immediately.
- The Federal Reserve replaces bills only if more than half of the original bill is present and identifiable.
- Processing time ranges from one to three weeks, depending on your bank and the Federal Reserve's workload.
- Bring the damaged bill to your bank in person; do not mail it yourself or attempt to tape it together before depositing.
- If your bill is clearly counterfeit or so damaged that identification is impossible, the bank may refuse it and report it to law enforcement.
What counts as damaged money that banks will accept
A bill is considered damaged if it has been torn, burned, water-soaked, faded, or marked in ways that make it less than perfect—but still recognizable. Tape, glue, or attempts to repair it do not disqualify it. A bill with a corner missing, a long tear down the middle, or stains from coffee or dirt will still be accepted by your bank.
The key threshold is the 50 percent rule: if you can identify more than half of the bill—including the serial number and at least one side of the portrait—the Federal Reserve will replace it. If less than half remains, or if the bill is so damaged that its denomination cannot be determined, replacement is not possible.
Mutilated money—bills that have been burned, buried, or run through a washing machine repeatedly—can still be submitted. The Federal Reserve has a Mutilated Currency Division that handles extreme cases. Even if a bill is reduced to fragments, you can send it to the Federal Reserve directly if your bank refuses it.
How the replacement process works at your bank
Bring the damaged bill to your bank's teller window during business hours. Do not deposit it through an ATM; ATMs reject damaged currency, and you will not be able to retrieve it. Tell the teller the bill is damaged and you want to exchange it or have it evaluated for replacement.
The teller will examine the bill and decide whether to process it immediately or send it to the Federal Reserve. If the damage is minor and the bill is clearly identifiable, some banks will replace it on the spot from their own cash drawer. If the damage is significant, the teller will fill out a form, place the bill in an envelope, and send it to the nearest Federal Reserve branch.
Your bank will either credit your account while the bill is in transit or give you a receipt and process the credit once the Federal Reserve confirms the replacement. Ask the teller which method your bank uses. Processing typically takes one to three weeks, though it can be longer during high-volume periods.
What happens if the Federal Reserve denies replacement
If the Federal Reserve determines that less than half of the bill is present or that it cannot be identified, they will not replace it. Your bank will notify you of the denial, usually by mail or phone. At that point, the money is gone—there is no appeal process or second chance.
This is why the 50 percent rule matters. A bill that is 49 percent intact will not be replaced. If you have a bill that is borderline, ask the teller for their assessment before submitting it. Some tellers are more experienced at judging damage than others, and their opinion can help you decide whether it is worth the wait.
If you believe the Federal Reserve made an error, you can contact your bank and ask them to request a review. This is rare and usually unsuccessful, but it is an option if the bill was clearly more than half intact.
Sending damaged money directly to the Federal Reserve
If your bank refuses to process damaged currency or if you prefer to bypass your bank, you can send the bill directly to the Federal Reserve's Mutilated Currency Division. The address is on the Federal Reserve's website, and there is no cost to submit bills this way.
Package the damaged bill carefully—place it in an envelope with a letter explaining what happened to it and why you believe it should be replaced. Include your name, address, and phone number. Do not tape the bill together or attempt to repair it; send it as is.
Mail it to the Federal Reserve's Mutilated Currency Division. Processing takes four to eight weeks when you submit directly, longer than going through your bank. You will receive a letter with the result, and if replacement is approved, a check will be mailed to you.
Common reasons banks refuse damaged money
Banks may refuse damaged currency if they suspect it is counterfeit. If a bill has been altered, bleached, or reprinted, the bank is required to confiscate it and report it to the Secret Service. Do not argue with the teller if this happens; it is a federal matter, and the bank has no discretion.
Some banks also refuse bills that are so fragmented or contaminated that they cannot be safely handled. If a bill has been exposed to hazardous materials, mold, or biological contamination, the bank may decline it for health and safety reasons. In these cases, ask the teller whether you can submit it to the Federal Reserve directly instead.
Occasionally, a teller will refuse a damaged bill simply because they are unfamiliar with the process or uncomfortable handling it. If this happens, ask to speak to a manager or visit a different branch. The policy is federal, not local, so another teller should accept it.
What to do if you find damaged money
If you receive damaged money as change or discover it in your possession, deposit it into your bank account or exchange it at the teller window. Do not attempt to repair it with tape or glue—this makes it harder for the Federal Reserve to evaluate and may delay replacement.
If the damage is recent and you know how it happened (a bill got wet, torn, or burned), mention that to the teller. The Federal Reserve uses this information to assess whether the bill is genuinely damaged or counterfeit. A bill that was accidentally washed is treated differently from one that was deliberately altered.
Keep the damaged bill safe until you can bring it to the bank. Do not spend it or try to use it elsewhere; most businesses will refuse it, and you will have wasted the opportunity to get it replaced.
Frequently Asked Questions
Can I tape a ripped bill back together before taking it to the bank?
No. Tape makes it harder for the Federal Reserve to examine the bill and may delay or prevent replacement. Bring the bill as is, even if it is in pieces. The Federal Reserve has equipment and expertise to handle fragmented currency.
How long does it take to get a replacement bill?
If your bank replaces it immediately from their cash drawer, you get it on the spot. If they send it to the Federal Reserve, expect one to three weeks. Direct submission to the Federal Reserve takes four to eight weeks. Ask your teller which process will be used.
What if I only have half a bill?
If you have exactly half or slightly more, the Federal Reserve will replace it. If you have less than half, you will not receive a replacement. The 50 percent threshold is strict, and the bill must also be identifiable by serial number or portrait.
Can I exchange damaged money at a store instead of a bank?
No. Stores are not required to accept damaged currency, and most will refuse it. Banks are the only place to exchange or deposit damaged bills. Some businesses may accept it as a courtesy, but you have no right to demand it.
What if the bank says my bill is counterfeit?
If the bank suspects counterfeiting, they will confiscate the bill and report it to the Secret Service. You will not receive a replacement. If you believe the bill is genuine, you can contact the Secret Service directly, but the bank's decision is final at that point.