Do Banks Accept Torn Money? According to about.com, money that is damaged and still clearly readable may be exchanged at any bank. Bills that are severely damaged are considered mutilated and must be mailed or hand delivered to the Bureau of Engraving and Printing.
Best Answer: Paper money that has been mutilated or partially destroyed may in some cases be redeemable at full face value. Any badly soiled, defaced, torn, or worn-out currency that is clearly more than half of the original note can be exchanged at a commercial bank, which processes the note through a Federal Reserve Bank.
There was a $20 bill that was completely torn up so I did some research online to see if the banks would accept the money. From what I understand, as long as you have at least 51% of the bill, (more than half of the bill) and as long as the serial numbers are still there and legible, they will accept the cash if it's ripped.
If the Signature or the Amount in the check is torn, then the bank will not accept it. However, if the tear is in any corner of the check,. Go. ... What do banks do with torn money?
Obviously, the standard approach if you accidentally rip a $100 bill in half would be to tape the two halves together. Failing that, though, the Bank of Canada will still accept damaged bills. A torn bill consisting of more than three-fifths of the note is worth full value. A bill is worth half if between 40% and 60% of the bill remains intact.