Where Does All the Old Money Go Each Year?
The United States Treasury says they redeem more than $30 million worth of damaged cash every year. Here’s what happens to all that money.
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00:00You've probably come across ripped or damaged bills in your wallet at some point.
00:05But have you ever thought about what happens when that old money needs to be replaced?
00:09Banks will give the Federal Reserve unfit currency and they'll take it out of circulation.
00:13The old money is brought to cash offices across the U.S. where it's counted and sorted.
00:18And then it's taken to the shredders to be destroyed.
00:20The U.S. Treasury says they redeem more than $30 million worth of damaged cash yearly.
00:25The Fed then replaces the old money with new cash, recirculating it into banks and
00:30ATMs.
00:31Yahoo Finance reports the luxe confetti used to go to the landfill, but now 90% is recycled,
00:37either to make compost, potting soil, home insulation, or cement.
00:41The Fed says currency's unfit for use when it has holes about the size of an aspirin,
00:46or is torn, dirty, or worn, or was produced before 1996.
00:50What do you do if you've got a bill that's on the verge of destruction?
00:54If at least half the bill is intact, you can take it to the bank and exchange it.