You’re digging through an old relative's attic or maybe just staring at a Monopoly board when the thought hits you. Are there $500 bills in the real world? It sounds like a myth. Most of us feel like high rollers just carrying a crisp hundred, so the idea of a single piece of paper worth five times that feels like something out of a heist movie.
Yes, they exist. They’re real legal tender. But don’t expect to get one out of a Chase ATM anytime soon.
The $500 bill is a ghost of the American financial system. It hasn't been printed in eighty years. Yet, if you walked into a grocery store today with a 1934 William McKinley $500 note, the cashier could technically accept it for five hundred dollars worth of eggs and milk. Of course, they’d probably stare at you like you had three heads first. And honestly? You'd be losing a massive amount of money on the deal. These things are worth way more to collectors than the number printed on the corners.
Why the Government Stopped Printing Large Denominations
The Federal Reserve stopped printing high-value bills—the $500, $1,000, $5,000, and $10,000 notes—back in 1945. They didn't officially "retire" them until 1969. Why? Lack of use. Most people in the 1940s weren't walking around with the equivalent of several thousand modern dollars in their pockets. These bills were primarily used for large transactions between banks. Before the digital age, if Bank A owed Bank B a million dollars, it was easier to move a stack of $10,000 bills than thousands of "Benjamins."
Then came the rise of electronic banking.
Efficiency killed the $500 bill. Once computers could track millions of dollars with a keystroke, the physical need for massive denominations vanished. There was also a darker reason for pulling them: crime. It is significantly easier to smuggle a million dollars across a border if you can fit it in a small envelope rather than a heavy suitcase. The Department of the Treasury and the Fed realized that high-value notes were a gift to money launderers and tax evaders. By 1969, they decided to stop distributing them entirely.
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Today, the $100 bill is the largest denomination being printed. It makes up a huge portion of the physical currency in circulation, but the $500 note remains a relic of a different era.
The Portrait on the $500 Bill: William McKinley
When you think of famous faces on money, you think of Lincoln or Washington. But the $500 bill features William McKinley. He was the 25th President of the United States. Most people forget he was even president, let alone that he’s the face of a high-value note.
McKinley’s tenure was actually pretty pivotal. He led the country during the Spanish-American War and stood firmly on the side of the gold standard. It’s somewhat ironic that his face ended up on a bill that eventually became obsolete as we moved toward a purely fiat, digital-heavy economy. There were earlier versions of the $500 bill, like the 1918 series featuring John Marshall, but the 1928 and 1934 McKinley notes are the ones collectors usually hunt for today.
Can You Spend a $500 Bill Today?
This is where it gets tricky.
Technically, the answer is yes. Every $500 bill ever printed remains legal tender. If you owe the IRS $500, you could (in theory) hand them one of these notes. But you absolutely shouldn't. Because these bills are no longer in circulation, they have become "numismatic" items. That's just a fancy word for collectibles.
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Depending on the condition, a $500 bill can sell for anywhere from $650 to over $1,500. If it's a rare "Star Note" or in pristine, uncirculated condition, the price goes up even further. Walking into a store and spending it at face value would be like using a rare vintage comic book to start a campfire. You’re burning equity.
If you ever find one, your first stop shouldn't be the bank. If you take it to a bank, they are required to accept it at face value. However, most banks are instructed to send these bills back to the Federal Reserve to be destroyed. Once it hits the bank vault, that piece of history is likely gone forever, shredded into confetti.
The Rarity Factor: How Many Are Left?
It’s estimated that there are still several hundred thousand $500 bills "in the wild." That sounds like a lot, but consider how many billions of $1 bills are floating around. Most of these high-value notes are tucked away in private collections or sitting in safe deposit boxes, forgotten by heirs.
The scarcity is real.
The 1928 series is generally rarer than the 1934 series. Collectors also look for the "seal color." Most $500 bills have a green seal, but there are variations out there that can drive a collector wild. For example, some older gold certificates—which were basically receipts for actual gold held by the government—featured $500 denominations and are incredibly valuable today.
Spotting a Fake $500 Bill
Counterfeiting isn't just a modern problem. Because a $500 bill is worth so much, there are plenty of fakes out there.
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If you’re looking at one, check the paper first. Genuine U.S. currency isn't actually paper; it's a blend of cotton and linen. It should feel slightly "raised" to the touch, especially on the portrait. Look for the tiny red and blue security fibers embedded in the paper, not just printed on top of it. On the 1934 series, the ink should be crisp. If the borders look blurry or the portrait of McKinley looks "flat" or muddy, you’re likely looking at a reproduction.
Also, check the serial numbers. They should be perfectly aligned and the ink color should match the Treasury seal. Many fakes use a slightly different shade of green that looks "off" once you've seen a real one.
Why the $500 Bill Won't Come Back
Every few years, there’s a rumor that the Treasury might bring back the $500 bill to account for inflation. Let’s face it, $100 doesn't buy what it used to in 1969.
But it’s almost certainly never happening.
The trend in global finance is moving toward less cash, not more. Governments actually want to eliminate high-value notes. In 2019, the European Central Bank stopped issuing the 500-euro note for the exact same reasons the U.S. stopped the $500 bill: it was too useful for "nefarious activities." Larry Summers, the former Treasury Secretary, has actually advocated for getting rid of the $100 bill entirely.
In a world where you can pay for a car with a wire transfer or a specialized app, a $500 bill is a liability for the government. It’s a tool for anonymity in an age where regulators want transparency.
What to Do If You Find One
So, you found a McKinley note in your grandfather’s old desk. Don't panic. And don't go to the mall.
- Protect the bill. Put it in a PVC-free plastic sleeve immediately. Oils from your skin can degrade the paper and lower the "grade" of the note.
- Don't clean it. Never try to "wash" a bill or iron it to get out creases. You will destroy the value. Collectors want the original patina, even if it’s a bit dirty.
- Get it graded. Companies like PCGS (Professional Coin Grading Service) or PMG (Paper Money Guaranty) will look at your bill and give it a formal grade on a 70-point scale. A "Gem Uncirculated 65" is worth exponentially more than a "Very Good 20" that’s been folded in a wallet for years.
- Check the auction houses. Sites like Heritage Auctions or specialized currency dealers can give you a real-world estimate of what the bill is worth.
The $500 bill is a fascinating window into a time when cash was king and the American economy was transitioning into the global powerhouse it is today. While you won't see them in your wallet, they remain a very real—and very valuable—part of American history.
Actionable Next Steps
If you're interested in owning a piece of this history without spending a fortune, look into "fractional currency" or smaller denomination large-size notes from the early 20th century. If you suspect you have a real $500 bill, use a magnifying glass to inspect the "microprinting" around the portrait; even though it wasn't as advanced as today's tech, the engraving on genuine McKinley notes is incredibly detailed and difficult to replicate with standard printers. Always cross-reference the serial number with known databases of "Star Notes" to see if you're holding a rare replacement bill, which can double or triple the value instantly.