How to Exchange Old Money

Co-authored by Michael R. Lewis

Last Updated: April 19, 2024 References

Exchanging old currency may be necessary for several reasons. If your currency is old and damaged, you may want to exchange this currency for newer and usable currency. You may also own notes and coins that are from now-defunct currencies (like the Italian Lira, for example). Learning how to exchange old money will help you trade your worn or defunct currency for usable cash.

Method 1

Method 1 of 4:

Exchanging Mutilated Currency

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1
Understand the concept of mutilated currency. If you own U.S. currency that is badly damaged, there are two basic ways to get the currency replaced. The correct method depends on whether or not the currency is considered "mutilated".^{[1]
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- Mutilated currency is defined as any currency that is damaged to the point where it is difficult to determine the value of the currency, or if at least one half of the currency is not present.
- For example, if you have a bill that is damaged to the point where only 25% of the bill remains, it would be considered mutilated.
- Missing or damaged security features also constitute a mutilated bill.
- Mutilation is typically caused by fire, water, chemicals, burial, or animal/insect damage.
2
Prepare to redeem mutilated bills. If your bill is mutilated, the only way to redeem the currency is by filing a reimbursement claim with the Office of Currency Standards within the Bureau of Engraving and Printing. The Bureau will use trained experts to determine if the currency is valid before any redemption is made.^{[2]
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- You must mail or personally deliver the mutilated currency to the Bureau of Engraving and Printing. When you submit the currency, you must include a simple letter indicating the estimated value of the currency, your contact information, and how the currency became damaged.
- With your submission, you should also include your bank account and routing number if you want to be reimbursed via direct deposit. If you choose to be reimbursed via check, include your mailing address and payee information.
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3
Mail or deliver the mutilated currency. After you have prepared your letter, you must mail the currency. Mailing mutilated currency involves making sure procedures are taken to reduce the chance of further damage occurring.^{[3]
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- If the currency is likely to fall apart, pack it gently in cotton, and place the package in a secure container.
- If the currency was flat when mutilated, never attempt to roll or alter the currency in any way to preserve it.
- If the currency was in a roll, never attempt to unroll it, and simply mail or deliver it as is.
- Mail your package to: Bureau of Engraving & Printing, MCD/OFM, Room 344A, P.O. Box 37048, Washington, DC 20013.
- If you are in the Washington DC area, you can deliver your submission to: Bureau of Engraving & Printing, MCD/OFM, Room 344A, 14th and C Streets SW, Washington, DC 20228
- Claims typically take between 6 and 36 months to be fully processed.

Method 2

Method 2 of 4:

Exchanging Damaged Currency

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1
Understand the difference between damaged and mutilated currency. Any bill that is clearly more than one half of the original bill and does not require any special training to determine its value is considered damaged.
- Damaged bills typically include dirty, worn-out, slightly torn, or defaced bills.
- These bills can be simply exchanged at your local bank.
2
Make sure the currency you are exchanging is valid. In the United States, this is typically not a problem. However, elsewhere it is important to make sure the currency is still accepted as legal tender or exchangeable.
- This can typically be determined either by searching online for the name and value of the currency, or by calling a bank and asking.
3
Check values if it is very old currency. It may be worth more than face value. There are some notes that are worth more to collectors than the face value. For example, silver backed one dollar bills from the U.S. typically sell for more than $1 in decent condition. If this is the case, you should always confirm its value.
- If you think your currency is old and may have value, check websites that post values by searching "collectible currency values". This will provide a list of price guides.
- Papermoneyguide.com or coinquest.com could be good starting resources.
- This is important to consider before simply replacing the currency at the bank. If you have currency from the early 1900s, for example, it may be worth more than the face value and is therefore worthwhile to confirm its value before exchanging.
- Generally, the older the currency, the more valuable it could be.
Q. David Bowers, Coin Collector

Expect to provide proof of authenticity for rare or high value pieces. Set realistic expectations on appreciation over time. Optimize value by selling individually versus bulk. With diligence, you can successfully liquidate old money into its fair current cash value.
Some banks will only exchange worn, ripped or currency in poor condition for its own customers. Other banks are willing to do it for anyone. It is probably a good idea to call the branch to check if you are headed to a bank where you do not have an account.
Currency that is still valid, but is simply worn, ripped, or in otherwise poor condition can be replaced at a bank. Deposit the money into any account, and the bank's relationship with their country's central bank and minting service will ensure that it is swapped for fresh currency. You can also just ask to swap it out without depositing it.^{[4]
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Method 3

Method 3 of 4:

Exchanging Currency that Was Phased Out

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1
Find out if the currency is still exchangeable. Sometimes a new government or central bank takes over and phases out an old currency. Other times, a merger with another currency replaces another. The most common example of the latter is the Euro replacing Francs, Lira, German Marks and other European currencies.
- Most countries that went to the Euro set a final date to exchange old currency. For the first countries that made the change, such as France and Germany, the final date was in 2012. This means that after this point, old Francs are just paper with no value for exchange.^{[5]
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If you are in the currency's home country, it should not be hard to swap the old currency for a new one. Follow the same steps in method 1 at this point. However, if you are not located in the currency's home country, you will have to call banks to see if they can make the exchange.
If you are making the swap outside the home country for that currency, find the best exchange rate and check on the fees. Since few financial institutions will have the new notes on hand, a bank will often require you to change the money into dollars or a common currency. Every institution will use a slightly different exchange rate so call around to find the best one.
The actual exchange process is very simple. The bank will simply take in your old notes and issue new ones. If you are exchanging a foreign currency for dollars, the bank should also provide a receipt that includes the exchange rate used and any fees.

Method 4

Method 4 of 4:

Using Other Approaches to Changing Currency

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Third party money changers can often handle notes that some banks will not accept for exchange. Banks sometimes will not accept money from a country that is not frequently visited. Other times, they will not deal with changing an expired currency for a new one.
2
Shop for the best rate and lowest fees at a third-party service. Every dealer and currency exchange will make money on the spread. This is the difference between what they pay for a currency and what they sell it for. Because the differences are dramatic at times, search for the best rate and lowest fees by calling and writing down the rates from different dealers. Don't forget to ask about any additional fees.
- A dealer should be able to quote you an exchange rate based on the spot price for that currency. Remember currency markets move so the rate today is not necessarily the rate tomorrow.
3
Replace old European currency using a third-party service. If you can't get to a bank in the issuing country, you can contact a third-party company that handles currency redemption. While if you hold old Francs you are out of luck, Lithuanian litas for example are still convertible into Euros.^{[6]
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Research source} Companies like Travelex specialize in changing currencies.^{[7]
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- Several companies of this type exist to provide redemption for defunct currency. These companies work by buying old money from customers at a low rate and exchanging it in bulk with national banks. The Currency Commission is one such company.
- Using this type of service will provide a lower rate for your exchange, but may be your only option once the issuing government's exchange deadline has passed.
If the currency is past its deadline, there may not be any option for exchanging. Sometimes collectors may have interest if it is rare, otherwise you may just have some nicely decorated paper. Check eBay to see if it has any value to anyone.

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Tips

If your money is very old, you may want to make sure that it doesn't have more value as a collector's item before trying to exchange it.

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Warnings

Before attempting to exchange old money through a private company, research the company thoroughly. This can help you avoid a potential scam.

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