No, you cannot get a $500 bill from a bank. The Treasury and the Federal Reserve discontinued the $500 note on July 14, 1969, and commercial banks are required to pull any that come across the counter out of circulation rather than hand them back out. If you want one today, the only place to buy a $500 bill is the private collector market, where even worn examples sell for well above face value.
Why Banks Won’t Hand One Over
The Bureau of Engraving and Printing last printed $500 notes in 1945, and the Treasury formally retired the denomination in 1969 for lack of use.1Engraving & Printing. Historical Currency The $1,000, $5,000, and $10,000 bills were discontinued at the same time. The Federal Reserve now issues only the $1, $2, $5, $10, $20, $50, and $100 for public circulation.2Board of Governors of the Federal Reserve System. Which Denominations of Currency Does the Federal Reserve Issue?
When a $500 bill does turn up at a bank, often from an estate deposit or an old safe, internal policy requires the teller to pull it from the drawer. The note is routed to a Federal Reserve Bank, separated from the ordinary cash stream, and designated for destruction. The Fed replaces that face value with current notes so the money supply stays level. Every $500 bill that enters the banking system is retired, which is why a teller cannot order one for you no matter how long you are willing to wait.
If You Already Have One, Don’t Deposit It
The costliest thing you can do with a $500 bill is walk it into a bank and deposit it at face value. The bank will credit your account $500 and send the note off to be destroyed. On the collector market, almost every genuine $500 bill is worth more than that, often substantially more.
The most commonly encountered variety is the 1934-series Federal Reserve Note with a green Treasury seal and a portrait of President William McKinley. Even heavily circulated examples typically trade for several hundred dollars above face value. Notes in very fine or better condition often sell for $2,000 or more, and pristine uncirculated pieces have brought $10,000 to $20,000 or higher at auction. Earlier issues such as the 1918 Federal Reserve Note, the 1922 Gold Certificate, and the 1928 Gold Certificate are far scarcer, with prices starting around $2,750 in average condition and climbing sharply from there.
Before you do anything with the note, have it looked at by a reputable currency dealer or a professional grading service. A few minutes of evaluation can be the difference between $500 in your checking account and a four- or five-figure private sale.
Where to Buy a $500 Bill
Because no bank will supply one, the numismatic market is the only source. Professional currency dealers, auction houses that specialize in paper money, and online marketplaces built around collectible currency all handle $500 notes with some regularity. The 1928 and 1934 Federal Reserve Notes are the easiest to find; the gold certificates and pre-1928 issues come up less often and cost considerably more.
Price depends on the series, the seal color, and the physical condition of the note. Expect to pay a meaningful premium even for a well-worn example, and expect sharp jumps in price as condition improves.
Avoiding Counterfeits and Altered Notes
High-denomination notes attract counterfeits and alterations, so authentication matters. The safest route is to buy notes that have already been graded and encapsulated by a professional third-party service. PMG (Paper Money Guaranty), for example, reviews each note for authenticity, attributes it to a reference catalog, and assigns a grade on a standardized scale, with the submitter’s paperwork separated from the note during review to prevent bias. Notes judged to be counterfeit or altered are returned unencapsulated rather than graded.3PMG. PMG Grading Process
You can inspect an ungraded note yourself by checking the paper, feeling for the slightly raised intaglio printing, and comparing design details against a reference for the claimed series. But $500 bills predate modern anti-counterfeiting features like watermarks, color-shifting ink, and security threads, so visual inspection alone is not reliable at these prices. The cost of professional grading is almost always worth paying.
Is a $500 Bill Still Legal Tender?
Yes. Every surviving $500 bill remains legal tender under federal law, which covers all United States coins and currency, including discontinued Federal Reserve notes, for all debts, public charges, taxes, and dues.4Office of the Law Revision Counsel. 31 USC 5103 – Legal Tender You could, in theory, hand one to the IRS and get full $500 credit against a tax bill.
No federal law, however, requires a private business to accept any particular denomination, or cash at all. The Federal Reserve has confirmed that private businesses may set their own payment policies unless a state law says otherwise.5Board of Governors of the Federal Reserve System. Is It Legal for a Business in the United States to Refuse Cash as a Form of Payment? A store can turn down a $500 note for any reason, from authentication concerns to simply not having the change.
Taxes If You Sell
The IRS treats collectible currency the way it treats coins, art, and other collectibles. If you sell a $500 bill for more than you paid, or more than its fair market value on the date you inherited it, the profit is a capital gain. Net long-term capital gains on collectibles are taxed at a maximum federal rate of 28 percent, higher than the 15 or 20 percent rate that applies to most other long-term gains.6Internal Revenue Service. Topic No. 409, Capital Gains and Losses If you held the note for a year or less, the gain is taxed as ordinary income at your regular rate.
Keep documentation of what you paid or, for an inherited note, a professional appraisal that establishes the cost basis as of the date of inheritance. State income tax may apply on top of the federal rate.
Storing and Insuring the Note
A $500 bill worth several thousand dollars needs protection that your default coverage probably doesn’t give it. Standard homeowners and renters policies typically cap coverage for cash and collectible currency at roughly $1,500 to $2,500 total. If the note is worth more than that sublimit, ask your insurer about scheduling it separately or adding a valuable-items rider.
A bank safe deposit box provides physical security but no insurance. The FDIC insures deposit accounts, not the contents of safe deposit boxes, so a note damaged or stolen from one is generally not reimbursed by the bank.7FDIC.gov. Five Things to Know About Safe Deposit Boxes, Home Safes and Your Valuables If you use a safe deposit box, you still need a separate policy that covers the collector value. A fireproof home safe paired with the right insurance is another route, with its own theft risk to weigh.