There’s a rumor that the $50 bill is on its way out. This rumor claims that the government is getting rid of fifties for good and that banks won’t accept it anymore. Some people are even saying that banks have already stopped taking fifties.
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So what’s the truth? Should you be worried about the fifties in your wallet now?
The Truth About the Rumor
The truth is simply that the government is not stopping $50 bills. Not now, and not anytime soon. Banks still accept them just like any other money.
There’s absolutely nothing wrong with the $50 bills you have right now, and you don’t need to take any action.
The U.S. government hasn’t announced plans to retire the $50 bill. It’s still being printed and remains legal tender, meaning it can be used for all transactions. The Treasury Department and Federal Reserve are in charge of currency production, and they haven’t said anything that suggests that the $50 bill might be discontinued.
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Will There be a New Version of the $50?
Some versions of the rumor claim that a new design of the $50 bill is going to be issued soon, and so older versions of the bill will be phased out as the new one enters circulation.
“A rumor has been circulating that the banks and ATMs across the United States will no longer accept older, damaged or worn-out $50 bills — as part of an initiative to update the nation’s currency and improve security measures. This is false,” said Thomas Brock, CFA and contributor at RetireGuide.com. “Banks and ATMs are accepting older $50 bills and will continue to do so. According to the U.S. Currency Education Program, ‘It is U.S. government policy that all designs of Federal Reserve notes remain legal tender, or legally valid for payments, regardless of when they were issued.'”
All bills — not just fifties — are always accepted for their full value, no matter how old they are. And there have been no plans announced for a new version of the $50 bill.
Some businesses might choose not to accept it, but that doesn’t mean the government or banks are phasing it out.
Stores Can Still Say No to Fifties
Some stores make their own rules about $50 bills. Usually, they do this to protect themselves from counterfeit bills. Instead of checking if big bills are real, it’s just easier to stick with smaller bills.
This has nothing to do with $50 bills going away or being worth less than their full value. Store owners can choose what bills they accept, and that’s always been true.
“No official directives have been issued to discontinue the circulation of these bills,” said Rene Lacad, an entrepreneur and consultant. “This notion originated from misunderstandings surrounding cash acceptance protocols.”
If a store won’t take your $50 bill, you’ve got plenty of options. You can stop by a nearby bank to break the bill into smaller ones. Or just save your fifties for places you know will take it.
“Think about carrying a variety of bills, such as $20 notes, which are typically more convenient for businesses to handle,” suggested Lacad.
Remember that a store’s choice not to take fifties doesn’t mean there’s anything wrong with your money. It’s just that particular store’s policy.
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This article originally appeared on GOBankingRates.com: Is the $50 Bill Really Not Being Accepted Anymore? And How Would This Affect Your Wallet?
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