Where Money Goes to Die

Ever wonder what happens to ripped bank notes or dented coins? Everyday the US destroys approximately 5 million unfit bills which adds up to 7,000 tons of material a year. The reasons for their destruction range from simply wearing out to being contaminated with a hazardous substance. Roughly 45% of all notes replaced are $1 bills, which have a life expectancy of 21 months. Other denominations remain in circulation longer. A $100 bill usually lasts seven years.

The majority of bills are simply shredded, and recycled into new money, but some are sold as a novelty item (after being irreversibly shredded of course). The Australians however, have a slightly more unique idea. Unlike US bills which are cotton and linen based, new Australian bills are actually made out of biaxially-oriented polypropylene (plastic to you and me). When these beauties wear out, they're melted into garbage cans. Due to their unique composition, the bills last about 4 times as long as their paper equivalencies.

Coins have a different life story. Generally coins are left in circulation until it's decided to no longer circulate that particular denomination. Being made out of various alloys means they last significantly longer than bills: 25 years on average. In the US coins are only destroyed after they incur serious damage such as a dent, large chip, or melting, which prevents them from being detected in automated machines (think vending machines). When this happens they are melted down and eventually made into new coins. In the European Union damaged coins are stamped with a special machine marking them as invalid currency, and they are then sold as scrap metal to various vendors.

If you own damaged bills or coins they can be replaced with new ones by turning them into your government's mint. The rules generally state that if you have at least half of the bill you can be compensated the full face value of the note. If you have less than half but can prove the other part has been destroyed you can also get full value. If you're not that fortunate and only have a small part of the bill, replacement is handled on a case by case basis.

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