Banks will usually take ripped money, but the process depends on how damaged it is and which bank you use

If a bill is torn, stained, faded, or otherwise damaged but you can still identify it as genuine U.S. currency, most banks will accept it at face value without question. You can simply deposit it like any other bill. The teller will process it normally, and you will get full credit for the amount.

If the damage is severe—if large pieces are missing, if it is burned, or if you cannot tell what denomination it is—the bank will likely refuse it and send it to the Bureau of Engraving and Printing, a division of the U.S. Treasury. That agency has a separate process for mutilated currency, and it takes weeks or months. You will not get immediate credit.

The line between "damaged but acceptable" and "mutilated and rejected" is not always clear, and different banks draw it differently. A bill that one teller accepts another might refuse. Knowing what to expect and what to do if a bank turns you down will save you time.

Key Takeaways

  • Most banks accept torn or stained bills at full value if the damage is minor and the bill is still clearly identifiable.
  • Severely damaged bills—those with large missing pieces, heavy burn marks, or unclear denomination—will be rejected and sent to the Treasury for evaluation.
  • If a bank refuses your damaged bill, you can mail it directly to the Bureau of Engraving and Printing's Mutilated Currency Division.
  • The Treasury process for mutilated currency typically takes two to three months, and you receive a check rather than new bills.
  • Banks have no legal obligation to accept damaged currency, so policies vary by institution and by teller.

What counts as damaged versus mutilated

A damaged bill is one that has minor wear but is still clearly a U.S. bill and still clearly shows its denomination. This includes small tears, creases, stains, fading, or writing on the bill. Banks routinely accept these without hesitation. The bill goes into the bank's normal cash handling process and may eventually be sent to the Federal Reserve for destruction and replacement, but that happens behind the scenes and does not affect you.

A mutilated bill is one where a significant portion is missing, destroyed, or unidentifiable. Examples include bills that are burned, bills with large chunks torn away, bills that have been run through a washing machine and are falling apart, or bills so faded or stained that you cannot read the denomination. These bills cannot be processed through normal banking channels because they cannot be verified as genuine or counted accurately by sorting machines.

The Treasury defines mutilated currency as any bill where less than half remains, or where the remaining half is so damaged that value or denomination cannot be determined. However, banks often use a stricter standard and will refuse bills that are merely questionable, even if they might technically pass the Treasury test.

How to deposit damaged money at your bank

For minor damage, simply bring the bill to your bank during business hours and deposit it as you normally would. You can include it in a deposit envelope, hand it to a teller, or use an ATM if the machine will accept it. Most ATMs reject visibly damaged bills, but a teller will take it. There is no special form, no waiting period, and no reduced value—you get full face value.

If you have several damaged bills, you can deposit them all at once. Tellers see damaged currency regularly and do not need explanation. If a teller hesitates or refuses, ask to speak to a supervisor or manager. Different tellers have different comfort levels, and a supervisor may override the initial refusal.

If your bank refuses the bill and you believe it is not actually mutilated, you have two options: try a different bank branch, or proceed directly to the Treasury. Some banks are stricter than others, and a branch across town might accept what your local branch refuses.

Sending mutilated money to the Treasury

If a bank refuses your damaged bill, or if you know the bill is severely damaged and do not want to waste time at a bank, you can mail it directly to the Bureau of Engraving and Printing's Mutilated Currency Division. This is a free service run by the U.S. Treasury.

To submit mutilated currency, place the bill or bills in an envelope and mail them to:

Bureau of Engraving and Printing Mutilated Currency Division P.O. Box 37048 Washington, D.C. 20013

Include a letter explaining what happened to the bill—whether it was burned, torn, water-damaged, or something else. You do not need to fill out any official form, though you can include a brief note with your name, address, and phone number if you want the Treasury to contact you with a status update. Do not include anything else in the envelope, and do not use registered or certified mail (it is not necessary and adds cost).

The Treasury will examine the bill and determine whether enough of it remains to pay out the full value. If it does, you will receive a check in the mail for the face value of the bill. If not enough remains, you will receive a letter explaining why the claim was denied. The entire process typically takes two to three months.

What happens if the bill is too damaged to verify

If the Treasury cannot determine the denomination or cannot verify that enough of the bill remains, they will deny the claim and return the remains to you (or simply discard them, depending on their assessment). You will receive a letter explaining the decision. There is no appeal process, and the decision is final.

This happens most often with bills that have been burned beyond recognition, bills that have been in water for extended periods and are falling apart, or bills where the serial numbers and other identifying features are completely gone. If you believe the decision is wrong, you can resubmit the bill with additional documentation—for example, if you have a photo of the bill before it was damaged, or if you can explain the circumstances in detail—but the Treasury is not obligated to reconsider.

In practice, the Treasury approves the vast majority of claims for bills that have any significant portion remaining. Denials are rare and usually involve bills that are barely recognizable as currency at all.

Banks' legal right to refuse damaged currency

Banks have no legal obligation to accept damaged currency. The Federal Reserve and the U.S. Treasury encourage banks to accept minor damage, but the decision ultimately rests with each bank and each teller. This means policies vary widely. One bank might accept a heavily creased bill without question, while another might refuse it.

If a bank refuses your bill, you cannot force them to take it. Your only recourse is to try another bank or submit it to the Treasury. Some people keep a list of banks in their area that are known to be lenient with damaged currency, but this is not a reliable strategy because policies can change and individual tellers make their own judgment calls.

Federal law does require that the Federal Reserve accept damaged currency from banks, so banks themselves can deposit damaged bills with the Fed if they choose to. However, this does not mean they have to accept damaged bills from customers.

Special cases: water damage, mold, and contamination

Bills that have been exposed to water, mold, or other contamination are treated the same way as other damaged currency—minor damage is accepted by banks, severe damage goes to the Treasury. However, if you are concerned about contamination (for example, if the bill was in a flooded area or exposed to mold), you can mention this to the bank or Treasury. It does not change the outcome, but it provides context.

If you have a large quantity of water-damaged bills from a flood or disaster, contact your local Federal Reserve branch directly. They may have special procedures for handling bulk damaged currency and can advise you on the fastest way to process it. The Federal Reserve's main number is 202-452-3000, and they can transfer you to your regional branch.

Currency that has been exposed to hazardous materials (chemicals, radiation, biological agents) should not be handled or submitted through normal channels. Contact the Secret Service or your local law enforcement agency instead.

Frequently Asked Questions

Can I use tape to fix a torn bill before depositing it?

Tape does not help and may actually make the bill harder for a teller to process. Banks prefer to see the damage as it is, without repair attempts. A taped bill looks more suspicious and is more likely to be refused. Simply deposit the torn bill as-is.

What if I have a bill that is half one denomination and half another?

This is extremely rare but does happen when two bills are fused together by heat or water. The Treasury will evaluate it and pay out based on what remains. If you have this situation, mail it to the Mutilated Currency Division with a detailed explanation of what happened.

How long does it take to get a check from the Treasury for mutilated currency?

The process typically takes two to three months from the date the Treasury receives your envelope. There is no way to expedite it. If you need the money urgently, your only option is to try depositing the bill at a bank first.

Can I deposit damaged foreign currency at a U.S. bank?

No. U.S. banks only handle U.S. currency. Foreign currency, damaged or not, must be exchanged at a currency exchange service or a bank that offers foreign exchange. The Treasury does not accept foreign currency under any circumstances.

What if the bill is counterfeit?

If you suspect a bill is counterfeit, do not deposit it or mail it to the Treasury. Contact the Secret Service's field office in your area or call the U.S. Secret Service tip line at 202-406-5708. Do not attempt to spend it or pass it to someone else.