You won't find one in an ATM. Honestly, most bank tellers under the age of forty have never even seen one in person. We're talking about the $500 bill US currency, a piece of paper that feels like a myth but is very much legal tender. If you walked into a grocery store today and tried to buy a loaf of bread with a 1934 William McKinley $500 note, the cashier would probably call the police thinking it was Monopoly money. They'd be wrong, of course. It’s real. It’s rare. And it’s worth a lot more than five hundred bucks.
The United States hasn't printed a high-denomination bill since 1945. Think about that. We stopped making these before the end of World War II. In 1969, the Federal Reserve officially began pulling them from circulation because, frankly, they weren't being used by regular people. They were tools for banks to move massive amounts of cash between vaults before the internet made digital transfers instantaneous. Now, they are the crown jewels of "small size" paper money collecting.
What Happened to the $500 Bill?
It basically vanished. But it wasn't a sudden ban. The Treasury didn't go door-to-door seizing them. Instead, they just stopped putting them back out. When a $500 bill hit a bank teller’s drawer in the 70s or 80s, it got sent to the Fed and shredded. This "passive recall" worked almost too well. According to the Bureau of Engraving and Printing, most of the remaining high-denomination notes are held by collectors and dealers, though a few thousand are likely tucked away in floorboards or forgotten safe deposit boxes.
The most common version you’ll see is the Series of 1934. It features William McKinley, the 25th President of the United States. Why McKinley? At the time, he was a symbol of the gold standard and industrial prosperity. Before that, the 1928 series featured the same portrait but had a different seal color. If you find one with a gold seal, you’ve essentially hit the numismatic jackpot.
Currency is weird. We think of money as a static thing, but the $500 bill US currency is a living relic of a time when the government actually wanted high-value physical cash in the system. Today, the government hates it. Large bills make it easy to move illicit money. You can fit $1 million in $100 bills into a standard briefcase, but you could fit that same million in $500 bills into a small envelope. That’s exactly why the Feds aren’t bringing them back anytime soon, despite inflation making a $500 bill more practical for high-end purchases than it was in 1969.
The McKinley Factor and Technical Specs
Let’s get into the weeds of what these notes actually look like. They are the same size as your modern five or ten dollar bill. This is called "small size" currency, which replaced the "large size" (often called horse blankets) in 1928. The portrait of William McKinley is centered on the obverse. On the back, you’ll see the words "The United States of America" and "Five Hundred Dollars" in ornate, leafy lettering. There are no fancy holographic strips. No color-shifting ink. Just high-quality 1930s engraving on cotton-and-linen paper.
- Federal Reserve Seals: You’ll see a letter inside a circle on the left side. This tells you which bank issued it. A "B" is New York, "L" is San Francisco, and so on.
- The 1928 vs. 1934 distinction: Most 1928 notes are "redeemable in gold," whereas 1934 notes say they are "legal tender for all debts public and private." That tiny change in wording reflects the US moving off the gold standard.
- Condition is everything: A "Choice Uncirculated" note—meaning it looks like it was printed yesterday—can fetch $3,000 to $5,000. A "Fair" note that’s been folded a hundred times and has a pinhole might only get you $600 or $700.
Some people think these are illegal to own. That’s a total lie. You can legally carry a $500 bill in your wallet right now. However, if you try to deposit it at a bank, they are technically obligated to send it to the Federal Reserve for destruction. Don’t do that. You are literally throwing away the "collector premium" which is usually at least 20% over face value, even for the roughest examples.
Why the Market is Exploding Right Now
Investors are getting nervous about digital assets and the stock market, so they’re pouring money into "hard" collectibles. Paper money is a big part of that. The $500 bill US currency has become a gateway drug for high-end collectors. It’s recognizable. It’s prestigious. It’s a flex.
There’s also the scarcity factor. Unlike the $1,000 or $5,000 bills—which are so expensive they are out of reach for most people—the $500 bill is still "affordable" for a serious hobbyist. You can save up for a few months and actually buy a piece of American history. But the supply is fixed. No more are being made. Every time one gets destroyed by a bank or lost in a house fire, the remaining ones become more valuable.
I talked to a dealer at a recent coin show in Chicago who told me he can’t keep these in stock. He buys a McKinley for $800 and sells it for $1,100 within forty-eight hours. It’s a fast-moving market. People aren't just buying them because they like history; they’re buying them because they are a proven store of value.
How to Tell if Yours is Real (or a Fake)
Counterfeiting $500 bills wasn't very common back in the day because the stakes were too high. If you got caught, you were going away for a long time, and spending a $500 bill drew massive attention. However, modern fakes do exist, usually coming from overseas.
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First, feel the paper. Genuine US currency paper is made by Crane & Co. and has a very specific "snap" to it. It also has tiny red and blue silk fibers embedded in the paper. If those fibers look like they are printed on the paper rather than in it, you've got a problem.
Second, look at the engraving. The lines on McKinley’s face should be razor-sharp. On fakes, the ink often bleeds slightly, making the portrait look muddy or "flat." You should also check the serial numbers. They should be perfectly aligned and have a specific font style that hasn't changed much in a century. If the green ink of the serial number doesn't match the green ink of the Treasury seal exactly, be suspicious.
Practical Steps for Owners and Buyers
If you happen to find one of these in an old book or inherited one from a grandparent, do not rush to the bank. That is the single biggest mistake people make. Instead, you need to follow a specific path to ensure you get the actual market value.
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- Protect the note immediately. Put it in a PVC-free plastic sleeve. Do not use a paper envelope, as the acids in the paper can yellow the bill over time. Never, ever use tape or paper clips.
- Get it graded. Send the bill to a third-party grading service like PMG (Paper Money Guaranty) or PCGS Banknote. They will verify its authenticity and give it a numerical grade from 1 to 70. A graded note sells for significantly more than an "unprocessed" one because the buyer has peace of mind.
- Check the serial numbers for "fancy" patterns. A $500 bill with a serial number like 00000500 or 12344321 is worth a massive premium. These are called "low serials" or "radars."
- Avoid cleaning it. Some people think they can make a bill look better by washing it or ironing it. This is a disaster. Professional graders can spot a "pressed" or "washed" note instantly, and it can tank the value by 50% or more. Collectors want original paper waves and "body."
For those looking to buy, stick to reputable auction houses like Heritage Auctions or Stack's Bowers. Buying $500 bills on eBay is risky unless the note is already in a PMG or PCGS holder. There are too many "reproduced" notes listed in the wrong categories.
The $500 bill US currency represents a fascinating bridge between the old world of physical wealth and the new world of digital finance. It is a tangible reminder of a time when the dollar was as "good as gold" and the economy was driven by heavy industry. Whether you're an investor looking to diversify or just someone who loves the aesthetic of 1930s Americana, these notes are one of the most stable and interesting niches in the financial world today. Keep your eyes peeled at estate sales; you never know when a McKinley might be hiding in a shoebox.
Identify the "Series" date on the bottom right of the portrait and search a dedicated currency database to see the most recent auction results for that specific Federal Reserve branch. Values fluctuate based on which city the bill was issued from, as some branches printed far fewer notes than others. Get a professional appraisal before attempting any private sale.