If you often deal with cash, you’ve no doubt noticed that you cannot get bills in denominations higher than $100. For most of us, it doesn’t really matter, as we’re usually going to pay for large-ticket items with a credit card or, more rarely, a check.
Larger denomination bills do exist – technically. In fact, the presence of bills above the $100 mark predate the ratification of the US Constitution. Though uncommon, they were printed by the US government (in its various forms) until 1945.
At that point, however, the US Treasury decided to cease production on high-denomination bills. The Mint, citing a “lack of use,” discontinued all bills printed above $100.
However, although they are extremely rare, you can still find some of these bills still floating around in circulation. The $500 bill, the $1000 bill, and other higher denomination bills remain legal tender in the US and can be used as a tradeable vehicle for goods and services.
So, if you have one of these bills, PLEASE DON’T USE THEM AT FACE VALUE. They are much more valuable as collectors’ items than their printed denomination. Instead, read on for what to do with the two primary high-denomination bills – $500 and $1000 – that you may encounter.
The $1000 bill is the larger of the two most common high-denomination bills. Unfortunately, the value of the bills greatly outweighed their usefulness for the vast majority of the population. So, no new $1000s have been released into the American public domain since 1969.
The story of the $1000 bill began in 1918. The Mint began issuing the $1000 note with a blue seal and former Secretary of the Treasury Alexander Hamilton on its obverse. An eagle design adorned the bill’s reverse.
The presence of the blue seal was no accident. It denoted that the bill was a silver certificate and could be redeemed for its face value in physical silver. In other words, you could actually use the first issue of these bills to receive $1,000 worth of silver at the then-current price from the Treasury.
A second version of the $1000 appeared ten years later in 1928. This time, possibly due to Hamilton’s presence on other bills (like the $10), the $1000 bore the likeness of Grover Cleveland, the 22nd and 24th President of the United States. Cleveland’s inclusion likely paid homage to his commitment to fiscal conservatism and smart monetary policy.
Unlike its predecessor, this instrument also bore the green seal common to most federal reserve notes. In other words, it was just money, though all Federal Reserve notes were still backed by 40% gold, as required by the Federal Reserve Act of 1913.
As was the case with all large denomination bills, the US Mint printed $1000s until 1945. Furthermore, it continued to issue them until 1969, presumably from its 1945 vintage.
As with any of the bills larger than $100, the $1000 remains a legitimate and legal form of tender in the United States. However, the rarity and historical significance of these bills renders them much more valuable as collectors’ items. It is not uncommon to see them, depending on their condition, trading for more than five times their face value.
So, if you happen to own any $1000s, please don’t use one in the vending machine or to pay cab fare. Even if the bill is accepted, you’re not getting its true value that way.
The $500 bill bears a similar history to its $1000 cousin. It was first issued in 1918, the same year as the $1000, and entered the market as World War I was winding down. The Mint stopped printing them in 1945 and took them out of circulation in 1969.
The bill immediately diverged from its larger counterpart, however, due to its unique choice of the person to adorn its obverse. The $500 bill is the only piece of paper currency to feature a Supreme Court justice on its portrait. The country’s fourth Chief Justice, John Marshall, is the face of the earliest $500 bills issued.
The reverse of the bill is also different from others. It depicts Hernando de Soto discovering the Mississippi River in 1541. The 1918 bill is also a blue seal bill, reflecting its status as a silver certificate. In other words – like the $1000 bill issued in the same year – you could exchange one of these bills for its value in silver bullion.
Presumably due to its lower value and greater utility than the $1000, the $500 actually went through two more series of issues, rather than one. The second version of the $500 was much more conventional in its design, however.
The 1928 and 1934 series now came with President William McKinley on its obverse. On the reverse, the depiction of de Soto’s discovery gave way to a simple design featuring the bill’s value.
Regardless of the version, all of these bills fell victim to the same treatment as other large denomination bills.
So, if you’ve got a $500 on you, don’t go asking for change for it. Hang onto it – it’s worth much more than the face value would indicate.
Yes. Although they are not in circulation – or part of the money supply – they are absolutely valid as legal tender in the United States. In theory, you could use them to buy $1000 worth or $500 worth of goods or services. However, as we have mentioned repeatedly in this piece, they are worth far more than their printed amount as collectors’ items.
No. Because these bills are not in circulation any longer, the US Mint is not sending them to banks as part of the overall money supply. So, you cannot walk into a bank and request large denomination bills.
There are a few thousand of each denomination of large bills floating around the country, and the numbers of them will only get smaller over time. The number of $500s is likely in the tens of thousands, and larger bills are increasingly rarer from that figure. While “tens of thousands” sounds like there are many of them, it’s important to realize that there are an estimated 11.5 billion $100 bills available today.
No less than twice their face value, and often much more. There is a great deal of variability in the amount of markup on large denomination bills according to the condition of each individual bill and the competitive pressures on the prices. Generally speaking, you could pay roughly five times the face value of a large denomination bill in order to acquire it.
The US Mint ceased printing large denomination bills in 1945 and removed them from active circulation in 1969. At the time, the reason for the discontinuation was simply “lack of use.”
It’s important, however, to frame these bills in terms of their purchasing power in times past. At the time of its issue (1918), the $500 bill yielded the same purchasing power that $10,403.15 would have in 2024.
Even in 1969, when the bills were discontinued, a $500 bill was still worth $4,280.31 in today’s dollars. So, on a relative scale, it’s easier to see why most people weren’t carrying these bills in their wallets or using them to pay for goods and services regularly.
They were mostly used by the wealthy. In fact, two $10000 bills were used for dramatic effect in a 1982 movie called Jinxed, which was mostly forgettable save for that scene and the behind-the-scenes mayhem reported during its production.
However, one could make a reasonable argument that the Mint circle back around on some large denomination bills in the face of our inflated currency. $500 today is the equivalent of just over $24 in 1918, and plenty of people used $20s back then.
Until then, making any large purchases with currency remains a rather onerous task. It’s no wonder that we are becoming a more cashless society.
If you decide to collect large denomination bills, there are several considerations that you need to take into account. Here are some of the things to contemplate as you move into this arena:
Large denomination bills are unavailable through banks. You cannot expect to stroll into a local branch and ask for a $500, a $1000, or anything higher.
However, you should also be prepared for the fact that you might not find many appealing options with dealers, either. Because no one is making any more of these bills, they can only be acquired from individuals or entities who wish to sell them.
So, you may have to wait to find the bills that you want. Expect the wait to be longer for especially treasured bills, such as those that are uncirculated and of extremely high quality.
Bear in mind that every dollar in circulation, regardless of its value, is a product of the US Mint. As such, even large denomination bills have a serial number and their own provenance or pedigree.
Before you buy, you need to take steps to confirm that the bill(s) you are buying are authentic. Older bills are not equipped with the same degree of security measures that our more modern ones bear. So, here are some things to do to feel safer that the bill you’re considering is the real deal:
Because large denomination bills are bills, they are subject to wear and tear. So, not all bills available for collection are created equally. Some of them are in pristine shape and have never been in circulation. Others may have significant damage on them.
Collectors and dealers, therefore, have developed a grading system to use as a shorthand explanation about the quality of each bill. The grading system is as follows:
There is some subjectivity about exactly where each bill would fall in this system. As a general rule, the uncirculated bills have never been folded.
Our concept of what a typical dollar bill looks like – even a crisp one – is unlikely to be very high on the list. However, even a bill with holes in it might be graded as being Good. So, there’s quite a bit of latitude in the lower strata of the system, but things become much more detailed and finer as you near the top. The differences between the uncirculated bills might be extremely miniscule.
Once you have a large denomination bill or bills in your control, you need to be aware of the security concerns that surround their ownership.
First of all, these are flimsy pieces of cloth and are susceptible to fire, water, wind, and pretty much any other trauma or adverse event. As we mentioned in the grading section above, even a fold in a bill can reduce its value.
Secondly, these bills are legal tender, and you cannot stake your claim to them in any meaningful way. Unless you can prove that it’s yours, it belongs to the holder of the bill. So, large denomination bills are absolute targets for thieves and robbers.
Third, you need to take steps that you – or a family member – uses your bill as legal tender. You need to have a security system in place, and you need to have safeguards against using this money as, well, money. It’s not money anymore – it’s an investment in its own right, and the face value is largely immaterial to its value except as a starting point for the markup multiple.
It may surprise many people to learn that US currency doesn’t end with the $100 bill. There are $500 bills, $1000 bills, and even bills as high as the $100000 gold certificate.
However, these bills aren’t going to be part of your change at the supermarket. In fact, they are difficult to find at all – you can’t even get them at banks.
Instead, large denomination bills are an investment vehicle, much like gold or silver bullion. If you want to talk about the selection of bills that we have available, check out our other tender page and reach out to us.