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, but have you ever thought about what happens when that old money needs to be replaced? Banks will give the Federal Reserve unfit currency and they'll take it out of circulation. The old money is brought to cash offices across the U.S. where it's counted and sorted, and then it's taken to the shredders to be destroyed. The U.S. Treasury says they redeem more than $30 million worth of damaged cash yearly. The Fed then replaces the old money with new cash, recirculating it into banks' assets.
00:30and ATMs. Yahoo Finance reports the Lux Confetti used to go to the landfill, but now 90% is recycled, either to make compost, potting soil, home insulation, or cement. The Fed says currency is unfit for use when it has holes about the size of an aspirin, or is torn, dirty, or worn, or was produced before 1996. What do you do if you've got a bill that's on the verge of destruction? If at least half the bill is intact, you can take it to the bank and exchange it.
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