Banks will replace torn money if enough of it survives to prove its value

Your bank can exchange damaged bills for new ones, but the standard is straightforward: if you have more than half of the original bill, the bank will replace it. If you have exactly half or less, the bill is considered destroyed and cannot be replaced. The key is that the remaining portion must be identifiable as U.S. currency and show enough of the security features for the bank to confirm it is genuine.

You do not need to go through a lengthy process. Walk into your bank branch with the damaged bill, explain what happened, and ask to exchange it. Most banks keep replacement bills on hand or can order them within a few business days. There is no fee for this service—it is a standard banking function.

Key Takeaways

  • Banks replace torn bills if more than half of the original bill remains intact and identifiable.
  • You can exchange damaged money at your own bank branch without a fee or special form in most cases.
  • If your bank cannot replace the bill on the spot, they can order replacements and have them within a few business days.
  • For bills damaged beyond recognition or if you have less than half remaining, the U.S. Bureau of Engraving and Printing handles rare cases through mail.

What counts as "more than half" of a bill

The rule is visual and practical: if you can see more than 50 percent of the bill's surface area, it qualifies for replacement. This means you need to have a piece large enough that the serial number, denomination, or other identifying features are visible. A bill torn in half lengthwise, with one half mostly intact, clearly passes. A bill that is 40 percent there and 60 percent missing does not.

The bank employee will look at the bill and make a judgment call. They are trained to recognize what is replaceable. If there is any doubt, they can contact their regional Federal Reserve bank for guidance, but this is rare. In most cases, the decision happens in minutes.

How to prepare damaged money for the bank

Do not try to tape the bill back together or glue the pieces. Bring the damaged bill or bills in their current state. If you have multiple pieces, keep them together in an envelope or small container so nothing gets lost on the way to the bank.

Write a brief note explaining what happened—water damage, fire, pet damage, wear and tear—and include the approximate date if you remember it. This is not required, but it helps the bank understand the situation and process the exchange faster. Bring your ID and your bank account information, though the bank will have your account details on file if you are a customer.

What happens at the bank

Tell the teller you want to exchange damaged currency. Show them the bill and explain the damage. The teller will examine it, confirm that more than half is present and identifiable, and then either hand you a replacement bill from the cash drawer or place an order for one.

If the bill is in the cash drawer, the exchange takes seconds. If it is not, the bank will order it from the Federal Reserve, which usually takes two to five business days. You can pick it up in person or ask the bank to mail it to you. Some banks will credit your account instead of handing you cash, depending on their policy.

When your bank cannot help

If your bank is unwilling or unable to replace the bill, or if the damage is so severe that the bank cannot determine whether it is genuine, you can contact the U.S. Bureau of Engraving and Printing directly. This is a rare step and involves mailing the damaged bill to their office in Washington, D.C., along with a letter explaining the damage.

The Bureau will examine the bill and send you a replacement or a check for its value if the bill cannot be authenticated. This process takes several weeks. You can find the mailing address and detailed instructions on the Bureau's website under "Damaged Currency." This route is for situations where the damage is extreme—fire, chemical exposure, or animal damage—and the local bank has declined to help.

Common types of damage the bank will replace

Water damage is the most common reason people need replacements. A bill soaked in a flood, left in a pocket through the wash, or damaged by a burst pipe can be replaced as long as more than half survives. The ink may run and the paper may be weakened, but if the bill is identifiable, it counts.

Fire damage, pet damage, mold, and straightforward wear and tear all may have access to. A bill that has been folded so many times it tears along the crease, or one that has been chewed by a dog, can be replaced. The bank is not concerned with how the damage happened—only whether enough of the bill remains to prove what it is.

What you cannot get replaced

If you have less than half of the bill, the bank will not replace it. A bill that has been cut in half and you only have one piece does not may have access to. A bill that is 40 percent present and 60 percent missing is considered destroyed.

Counterfeit bills cannot be replaced through this process. If you suspect a bill is counterfeit, the bank will confiscate it and may report it to the Secret Service, but you will not receive a replacement. Intentionally damaged bills—ones that have been deliberately cut, burned, or defaced—are also not replaced, though the bank is unlikely to question accidental damage.

Frequently Asked Questions

Do I need to be a customer of the bank to exchange damaged money?

Most banks will exchange damaged currency for non-customers, though some may ask you to open an account or charge a small fee. Call ahead to ask your local branch's policy. If your bank declines, any other bank in the same system or a nearby branch of a larger chain will usually help.

What if I have a large amount of damaged bills?

If you have many bills, bring them all in a container and explain the situation. The bank may process them all at once or ask you to return on a different day. For very large amounts, the bank may contact the Federal Reserve directly to arrange a bulk exchange, which can take longer but is still free.

Can I exchange damaged foreign currency at my bank?

No. U.S. banks only replace U.S. currency. Foreign currency damaged beyond use must be exchanged through a currency exchange service or the central bank of that country, and policies vary widely. Your bank can tell you where to send it.

How long does it take to get a replacement bill?

If the bank has the denomination in stock, you walk out with a replacement the same day. If they need to order from the Federal Reserve, expect two to five business days for delivery to the branch. Mailing times vary by location.

Will the bank ask me questions about where the money came from?

For normal damage—water, wear, fire—no. The bank is straightforward replacing currency. If the damage is unusual or the amount is very large, they may ask what happened, but this is routine and not an investigation. If you cannot explain the damage, the bank may decline, but this is uncommon.