When currency is deposited with a Federal Reserve Bank, the quality of each note is evaluated by sophisticated processing equipment. Notes that meet our strict quality criteria - that is, that are still in good condition - continue to circulate, while those that do not are taken out of circulation and destroyed. This process determines the lifespan of a Federal Reserve note.
The lifespan of Federal Reserve notes varies by denomination and depends on a number of factors, including how the denomination is used by the public. For example, larger denominations such as $100 notes are often used as a store of value, which means they pass between users less frequently than lower-denominations such as $5 notes, which are more often used for transactions.
| Denomination | Estimated Lifespan |
|---|---|
| $1 | 5.8 years |
| $5 | 5.5 years |
| $10 | 4.5 years |
| $20 | 7.9 years |
| $50 | 8.5 years |
| $100 | 15.0 years |