Frequently Asked Questions
Currency: Notes and Coins to content
Does the Federal Reserve produce bank notes and coins?
Is U.S. currency legal tender for all debts?
What are U.S. notes, and how do they differ from Federal Reserve notes?
Are national bank notes still accepted as currency, or are they only collector's items?
How can I find out how much a specific bill is worth?
Where can I redeem mutilated currency?
How can I get a golden dollar?
How are coins and currency put into circulation?
How can I determine if a note is counterfeit?
What was the largest denomination ever issued, and whose picture was on it?
What happened to the $500, $1,000, $5,000 and $10,000 notes?
How is U.S. currency destroyed when it is removed from circulation?
How long does a bill last before it wears out?
How can I obtain a supply of shredded currency?
Where can I find additional information about currency?
What portraits are shown on U.S. coins?
Where can I purchase sheets of uncut money?
Where can I obtain newly minted coins, the new state quarters, or commemorative coin sets?
Where can I find information on the new currency note features? Why is it being changed?
When was the In God We Trust motto adopted?
Can I obtain specific coins and currency from a Federal Reserve Bank?
I have seen counterfeit detection pens used to mark suspect notes. How well do they work?
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Does the Federal Reserve produce bank notes and coins?
No, the Federal Reserve does not produce bank notes or coins. The Bureau of Engraving and Printing (BEP) produces currency and stamps, and the U.S. Mint produces our nation's coins. The Federal Reserve issues Federal Reserve notes and places them in circulation.
Is U.S. currency legal tender for all debts?
According to the "Legal Tender Statute" (section 5103 of title 31 of the U.S. Code), "United States coins and currency (including Federal Reserve notes and circulating notes of Federal Reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues." This means that all U.S. money, as identified above, when tendered to a creditor legally satisfies a debt to the extent of the amount (face value) tendered.
However, no federal law mandates that a person or an organization must accept currency or coins as payment for goods or services not yet provided. For example, a bus line may prohibit payment of fares in pennies or dollar bills.
Some movie theaters, convenience stores and gas stations as a matter of policy may refuse to accept currency of a large denomination, such as notes above $20, and as long as notice is posted and a transaction giving rise to a debt has not already been completed, these organizations have not violated the legal tender law.
What are U.S. notes, and how do they differ from Federal Reserve notes?
U.S. notes, the first national currency, began circulating during the civil war; they were authorized by the Legal Tender Act of 1862. The Department of the Treasury issued these notes directly. Issuance was subject to limitations; the Congress established a statutory limitation of $300 million on the amount of U.S. notes outstanding and in circulation. Although this amount was significant in Civil War days, it is a very small fraction of the total currency now in circulation in the United States.
U.S. notes serve no function that is not already served by Federal Reserve notes. As a result, the Treasury Department stopped issuing U.S. notes, and none have been placed into circulation since January 21, 1971. Those that remain in circulation are obligations of the U.S. government.
The Federal Reserve Act of 1913 authorized the production and circulation of Federal Reserve notes. Although printed by the Bureau of Engraving and Printing (BEP), these notes move into circulation through the Federal Reserve System. They are obligations of both the Federal Reserve System and the U.S. government.
Both U.S. notes and Federal Reserve notes are part of our national currency and are legal tender. They circulate as money in the same way.
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Are national bank notes still accepted as currency, or are they only collector's items?
Yes, any national bank notes still in circulation are legal tender at face value as a matter of law. National bank notes were issued from 1863 to 1935. They are probably worth more than face value to currency collectors, however, because they are very rare.
How can I find out how much a specific bill is worth?
If you believe that a bill may be worth more than its face value, you should consult a currency collector or dealer. The Bureau of Engraving and Printing (BEP) web site has a section specifically for collectors that includes a page of frequently asked questions that gives related information.
Where can I redeem mutilated currency?
Mutilated currency can be redeemed either by mail or in person at The Bureau of Engraving and Printing. The bureau’s web site provides more information on damaged or mutilated currency.
How can I get a golden dollar?
You can purchase a golden dollar from the U.S. Mint either online or by calling 800-USA-MINT (800-872-6468).
How are coins and currency put into circulation?
Coins and currency are placed into circulation through depository institutions, which obtain coins and currency from their Reserve Banks. The Federal Reserve, the Bureau of Engraving and Printing (BEP), and the U.S. Mint do not provide coins and currency directly to the public for circulation.
How can I determine if a note is counterfeit?
The U.S. Secret Service's web site provides detailed information about detecting counterfeiting.
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What was the largest denomination ever issued, and whose picture was on it?
The largest note ever printed by the Bureau of Engraving and Printing was the $100,000 gold certificate, series 1934, featuring Woodrow Wilson. This series was issued only to Federal Reserve Banks against an equal amount of gold bullion held by the Department of the Treasury for certain credits established between the Treasurer of the United States and the Federal Reserve Banks.
What happened to the $500, $1,000, $5,000 and $10,000 notes?
On July 14, 1969, the Department of the Treasury and the Federal Reserve System announced that currency notes in denominations of $500, $1,000, $5,000, and $10,000 would be discontinued immediately due to lack of use. Although they were issued until 1969, they were last printed in 1945. These notes are legal tender and may be found in circulation today; however, most are probably in the hands of collectors.
How is U.S. currency destroyed when it is removed from circulation?
Currency processing and authentication machines at Federal Reserve Bank cash offices determine whether the currency received from circulation is genuine and fit for recirculation. If a note is genuine but too worn for recirculation, the note is shredded. The shredded notes are sent to landfills or packaged and provided as souvenirs to the public during tours of the Federal Reserve Banks.
How long does a bill last before it wears out?
$ 1 21 months
$ 5 16 months
$ 10 18 months
$ 20 24 months
$ 50 55 months
$100 89 months
How can I obtain a supply of shredded currency?
Federal Reserve Banks may distribute small packages of currency residue to visitors and other members of the public in connection with Bank tours and other informational and public relations programs. For larger quantities, Treasury approval is required.
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Where can I find additional information about currency?
Further information about currency is available at the following Federal Reserve web sites:
American Currency Exhibit (Federal Reserve Bank of San Francisco)
Currency and Coin
Currency Devaluation and Revaluation (Federal Reserve Bank of New York)
Currency Processing and Destruction (Federal Reserve Bank of New York)
Dollars and Cents: Fundamental Facts about U.S. Money (Federal Reserve Bank of Atlanta)
How Currency Gets into Circulation (Federal Reserve Bank of New York)
Money Matters (1.33 MB PDF) (Federal Reserve Bank of Chicago)
The Story of Money (Federal Reserve Bank of Kansas City)
Virtual Tour of the 5th District Money Museum (Federal Reserve Bank of Richmond)
Information about currency is also available from the Bureau of Engraving and Printing (BEP) Money Facts web site.
What portraits are shown on U.S. coins?
United States coins currently in circulation have the following portraits:
Abraham Lincoln on the one-cent coin,
Thomas Jefferson on the nickel,
Franklin D. Roosevelt on the dime,
George Washington on the quarter, and
John F. Kennedy on the half-dollar coin
In the past 30 years there have been three one-dollar coins. The Eisenhower dollar was produced from 1971-1978; the Susan B. Anthony dollar was produced from 1979-1980, then again in 1999; and a one-dollar coin bearing the portrait of Sacagewea and her infant son was released in 2000.
Where can I purchase sheets of uncut money?
You can purchase money from the Bureau of Engraving and Printing.
Where can I obtain newly minted coins, the new state quarters, or commemorative coin sets?
You can request the newly minted coins and state quarters from your local financial institution. Additionally, the U.S. Mint sells special collector sets of the state coins, as well as commemorative coin sets, via their web site, or call 800-USA-MINT.
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Where can I find information on the new currency note features? Why is it being changed?
Information about new currency note features is available on the Bureau of Engraving and Printing web site.
When was the In God We Trust motto adopted?
Congress passed an Act on April 22, 1864 changing the design of the one-cent coin to include the motto and authorizing the creating of the two-cent coin. In God We Trust first appeared on the 1864 two-cent coin.
For more information on the history of the In God We Trust motto, go to The U.S. Treasury web site.
Can I obtain specific coins and currency from a Federal Reserve Bank?
The Federal Reserve Banks only provide coin and paper currency directly to depository institutions. You may call the depository institution you bank with to see if they will honor your request when they order currency or coin.
I have seen counterfeit detection pens used to mark suspect notes. How well do they work?
Counterfeit detection pens are not always accurate and may give you false results. Rather than using these pens, consumers and cash handlers should check the note's security features to guarantee its authenticity. Three new features were incorporated into notes in the 1990s and have been enhanced for the Series 2004 notes: security thread, color-shifting ink, and the watermark. Features vary depending on denomination. To learn more about the security features please visit the Bureau of Engraving and Printing's web site.
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