What to Do with Damaged Cash
Introduction
Most of us don’t have money to burn, so it's good to know that charred, mutilated, or even chemically altered cash can often be redeemed at full value by the federal government. Whether the damage is minor or severe, there are steps you can take to get your damaged currency replaced.
Minor Damage: Spend or Exchange at a Bank
If the damage to your cash is minor, such as a small tear or slight discoloration, you can try spending it or getting it exchanged at a bank. Most banks will replace minor damaged bills as long as they are still recognizable and the value can be determined.
Severe Damage: File a Claim with the U.S. Treasury
For severely damaged cash, you can file a claim with the U.S. Treasury’s Bureau of Engraving and Printing. This free service can take between three to 36 months, but it ensures you can redeem your mutilated currency.
Definition of Mutilated Money
According to the Treasury’s website, mutilated money is currency that has been severely damaged to the extent that its value is questionable or security features are missing. Common causes of damage include:
- Fire
- Water
- Chemicals and explosives
- Animal, insect, or rodent damage
- Petrification or deterioration from burying
Annual Claims
The Treasury Department handles approximately 30,000 claims and redeems mutilated currency valued at more than $30 million each year.
Image Description: Infographic showing common causes of currency damage and annual claims handled by the Treasury.
How to Submit Damaged Currency
Mailing Damaged Money
You can mail your damaged money to the Treasury or take it in person if you're in Washington, D.C. Follow these steps for submission:
- Ensure More Than 50% of the Bill is Intact: If more than 50% of the bill is intact and identifiable as U.S. currency with visible security features (such as color-shifting ink and watermarks), it will likely be replaced.
- Include Evidence if Less Than Half is Intact: If less than half of the note is intact, include evidence that the rest of the bill has been destroyed to increase the chance of full redemption.
Submission Details
Include a legible letter stating:
- The estimated value of the currency
- Your contact information
- An explanation of how the currency became mutilated
- Your bank account and routing number for reimbursement via direct deposit or payee and mailing address information for checks
Image Description: Illustration showing the process of submitting damaged currency for redemption.
Packing Tips to Avoid Further Damage
When packing your damaged cash, take care to avoid causing additional damage. Here are some tips from the Treasury:
- For Brittle Currency: Pack it carefully in plastic and cotton without disturbing the fragments, and place the package in a secure container.
- Keep Currency in Its Original Container: If the currency was mutilated in a purse, box, or other container, leave it in the container to protect the fragments.
- Send Containers with Fragments: If necessary to remove the fragments, send the container along with the currency and any other contents that may have currency fragments attached.
Image Description: Infographic showing how to pack damaged currency for submission.
Coins: Wait for the U.S. Mint
Currently, the U.S. Mint’s practice of replacing damaged coins is on hold pending the development of additional program safeguards. Do not include any coins with your damaged currency submission, as the metal can break up the currency.
Conclusion
Damaged cash doesn't have to be a loss. Whether minor or severe, there are ways to get your money replaced. By following the proper steps and taking care when handling and submitting damaged currency, you can ensure you recover the full value of your money.