Yes, the $500 bill is real. The United States issued $500 bills for decades, and while they haven’t been printed since 1945, they remain legal tender today. If you handed one to a bank, it would be honored at face value, though doing so would almost certainly cost you money since collectors pay well above $500 for these notes.
Why the $500 Bill Was Discontinued
The $500 bill features a portrait of William McKinley, the 25th president. The last series was printed in 1945, but the bills continued circulating for another two decades. On July 14, 1969, the Department of the Treasury and the Federal Reserve officially discontinued the $500 note, along with the $1,000, $5,000, and $10,000 denominations, citing lack of use.
By that point, checks and wire transfers had largely replaced the need for high-denomination cash in legitimate business transactions. There was also growing concern that large bills made it easier to move money for illegal purposes. A million dollars in $500 bills fits in a briefcase; the same amount in $20s requires a large duffel bag. Removing big bills from circulation made laundering cash physically harder.
Still Legal Tender
Even though the government stopped issuing them, $500 bills never lost their status as U.S. currency. As USAGov confirms, they are still legal tender and may still be in circulation. Any bank or business is legally entitled to accept one at face value. In practice, most bank tellers have never seen one, and you’d likely be directed to a manager or asked to verify the bill’s authenticity before it’s processed.
The Federal Reserve pulls these notes out of circulation whenever they pass through the banking system, so the supply shrinks every year. That scarcity is a big part of what makes them valuable to collectors.
What a $500 Bill Is Worth Today
A $500 bill is worth far more than its face value on the collector market. According to pricing data from Greysheet, a widely used numismatic reference, small-size $500 Federal Reserve Notes range from around $800 to $40,000 depending on the bill’s condition, series year, and issuing Federal Reserve district.
A circulated bill in average condition typically sells for roughly $800 to $1,500. Notes in crisp, uncirculated condition or from rarer issuing banks command significantly higher prices. Star notes (replacement notes identified by a star symbol in the serial number) and bills from low-print-run districts are the most sought after, sometimes reaching five figures.
If you come across a $500 bill, the smartest move is to have it evaluated by a reputable currency dealer or grading service before spending or depositing it. Even a well-worn example is likely worth at least 50% more than face value.
How to Tell If a $500 Bill Is Authentic
Because $500 bills are valuable, counterfeits do exist, though they’re relatively uncommon. Genuine notes were printed on the same cotton-linen blend paper used for all U.S. currency, which has a distinct feel compared to regular paper. The bill should show fine-line printing details that are difficult to replicate, and the portrait of McKinley should appear sharp and lifelike rather than flat or blurry.
Professional grading services like PCGS Currency and PMG authenticate and grade large-denomination notes for a fee. A graded and encapsulated bill sells for a premium over an ungraded one because the buyer doesn’t have to worry about authenticity. If you’re buying a $500 bill, purchasing one that’s already been professionally graded is the safest route.
Where People Find $500 Bills
Most $500 bills that surface today come from estate sales, safe deposit boxes, or inherited collections. Occasionally they appear at coin and currency shows, auction houses, or through online dealers. Major auction platforms specializing in numismatics, like Heritage Auctions, regularly list $500 notes.
If you inherit one or find one tucked away in an old collection, resist the urge to fold, clean, or handle it excessively. Condition is everything in the collector market, and even a fingerprint or crease can reduce a bill’s value by hundreds of dollars. Store it in a protective currency sleeve until you decide whether to keep or sell it.