Yes, the $500 bill is real. The United States government printed $500 bills for decades, and they remain legal tender today. You could technically walk into a store and spend one, though doing so would be a terrible financial decision since these bills are worth far more than $500 to collectors.
Who Is on the $500 Bill
The most commonly encountered $500 bill features a portrait of William McKinley, the 25th president of the United States. These are the “small size” notes from the 1928 and 1934 series, which match the physical dimensions of modern U.S. currency. Earlier large-size $500 notes from the 1800s featured other designs, but those are extremely rare and almost exclusively found in museum collections or high-end auctions.
When They Were Printed and Discontinued
The Bureau of Engraving and Printing produced $500 bills in several series through the early 20th century, with the 1928 and 1934 series being the last. On July 14, 1969, the Department of the Treasury and the Federal Reserve System announced that $500 bills, along with $1,000, $5,000, and $10,000 bills, would be discontinued immediately due to lack of use.
The government stopped printing them but never recalled them. Every $500 bill that was already in circulation stayed valid. Banks that received them would typically send them back to the Federal Reserve, which destroyed them, so the number still in existence has been shrinking for over 50 years. That scarcity is a big part of what makes them valuable to collectors.
Are They Still Legal Tender
They are. According to USAGov, the United States no longer issues bills in larger denominations such as $500, $1,000, $5,000, and $10,000, but they are still legal tender and may still be in circulation. A business is not required to accept any particular denomination, so a cashier could refuse it, but the bill itself carries full legal value as U.S. currency.
What a $500 Bill Is Worth Today
Collector values far exceed the face amount. According to Greysheet, a widely used pricing reference for U.S. currency, $500 Federal Reserve Notes currently catalog between $800 and $40,000 depending on the specific series, issuing bank, and condition. A circulated 1934 series note in average condition typically sells in the low four figures. Uncirculated examples or notes from rarer Federal Reserve districts command significantly higher prices.
Condition is graded on a numerical scale, and even small differences in paper quality, crispness, and centering can move the price by hundreds of dollars. If you come across a $500 bill, handling it carefully and storing it in a protective sleeve preserves its value. Getting it professionally graded by a third-party currency grading service can also help you sell it for a fair price, since buyers pay more for authenticated notes.
How to Tell If One Is Genuine
Because $500 bills carry significant collector premiums, counterfeits do exist. A few things to look for on a genuine note:
- Paper texture: Authentic U.S. currency is printed on a cotton-linen blend that feels distinctly different from regular paper. It should not feel smooth or slick.
- Red and blue fibers: Tiny red and blue threads are embedded in the paper. On a counterfeit, these are often printed on the surface rather than woven in.
- Intaglio printing: Genuine notes have raised ink you can feel with your fingertip, especially on the portrait and denomination numbers.
- Serial numbers: The serial numbers should be evenly spaced and printed in a consistent ink color. Misaligned or blurry serial numbers are a red flag.
If you’re considering buying a $500 bill, purchasing one that has already been graded and encapsulated by a recognized currency grading service eliminates most counterfeiting risk. Buying from established currency dealers or auction houses also provides more protection than purchasing from an anonymous online seller.
Where People Find $500 Bills
Most $500 bills surface through estate sales, safe deposit boxes, and inherited collections. Older relatives who distrusted banks sometimes kept high-denomination bills as a store of value, and these occasionally turn up decades later. Currency dealers, coin shops, and auction platforms are the most common marketplaces for buying and selling them. Major auction houses periodically feature $500 notes, especially rare varieties or high-grade examples that attract serious collectors.
If you find one in a family member’s belongings, resist the urge to fold, clean, or iron it. Any alteration reduces its collector value. Place it flat in a clean, dry envelope until you can get it assessed.