The $500 Bill: What to Do if You Find One

Is a $500 bill real money?

Yes. The government stopped printing $500 notes in 1945 and the Federal Reserve stopped issuing them in 1969, but it never demonetized them. They remain legal tender. In practice nobody spends one, because collectors pay well over face value for any genuine example.

After 1969 the Federal Reserve began destroying high-denomination notes as they came back from banks. That's one reason the number in private hands keeps shrinking and why you should never deposit one.

Small-size $500 Federal Reserve notes

Why were $500 bills made?

Large notes were for large transactions. Before electronic transfers, banks and businesses moved big sums in cash and a $500 or $1,000 note made that practical. As checks and wire transfers took over, demand fell away. The Treasury discontinued the high denominations in 1969, citing lack of use.

How do I tell a 1928 from a 1934?

Both show McKinley and look much alike. Read the text at the upper left of the face. The 1928 promises redemption in gold on demand at the Treasury, or in gold or lawful money at any Federal Reserve Bank. The 1934 drops the gold and says the note is redeemable in lawful money. Then check the series printed near the portrait and the signatures at the bottom against the table.

Each note also shows the issuing Federal Reserve Bank in a black seal at the left, with a letter from A for Boston to L for San Francisco. The same letter starts the serial number. Some districts printed far fewer $500 notes than others, which matters to collectors.

What about the seal color and mules?

Series 1934 notes come with either a lighter green Treasury seal or a darker green one and collectors record which is which. Series 1934A $500 notes are generally described as mules, meaning the face and back plate numbers come from different numbering systems. A specialist catalog lists which districts and variations are scarcer.

A $500 with a gold-orange seal and serial numbers is a 1928 gold certificate. It was recalled in 1933 along with other gold certificates and is a much scarcer note than the Federal Reserve versions.

What affects the value?

Every genuine $500 carries a collector premium. Where it lands depends on:

• Condition: many survivors circulated and show folds; crisp notes are a big step up
• Series: 1928 notes and the rarely seen later letters draw more interest than common 1934 and 1934A notes
• District: some Federal Reserve Banks issued far fewer notes
• Type: a gold certificate is in a different class from a Federal Reserve note
• Star notes and low serial numbers: both rare and highly sought
• Problems: tears, missing pieces, heavy stains and repairs all reduce value

How can I tell if it's genuine?

High-denomination notes are a target for fakes and replicas, so be careful. Genuine notes are on currency paper with small red and blue fibers. The engraving is sharp, with fine unbroken lines in McKinley's portrait and in the border. The serial numbers and seals should be crisp and evenly inked. If it says COPY anywhere, has a blank or odd back, or feels like ordinary paper, it isn't real. For anything that passes these checks, a dealer or grading service should authenticate it before you sell.

I found one in an estate. What now?

Slow down. Photograph both sides, write down the serial number and put the note in a sleeve in a safe place. Don't take it to a bank; you'd get face value and the note would likely be destroyed. Contact a reputable paper money dealer, or a grading service and ask about authentication and grading. Get more than one offer. If the estate needs a formal value, ask for a written appraisal that lists the series, district, serial number and grade.

Check the rest of the estate too. People who kept a $500 often kept other high denominations, gold certificates or red seal notes.

Frequently asked questions