United States Banknotes: History, Notable Notes & Collecting Guide
American paper money runs from the doomed Continental currency of the Revolution to the Civil War greenbacks, hometown National Bank Notes, gleaming Gold Certificates, and the Federal Reserve Notes in every wallet today. No other country offers collectors so many distinct classes of currency, or so many ways into the story.
Last updated: July 2026
United States banknotes span two and a half centuries, from the Continental currency of 1775 to today's Federal Reserve Notes, and every federal note issued since 1861 is still legal tender. Collectors divide the field into large-size notes, printed before 1929, and the small-size notes we still use, then subdivide by class: Demand Notes, United States Notes, National Bank Notes, Silver and Gold Certificates, Treasury Notes, and Federal Reserve Notes each tell a different chapter of American history.
How did American paper money begin?
America's first national paper money predates the nation itself. Beginning in mid-1775, the Continental Congress issued Continental currency to pay for the Revolutionary War, according to the Federal Reserve Bank of New York. With no taxing power behind the notes and British counterfeits flooding the colonies, the currency collapsed. By 1779 it had depreciated to pennies on the dollar as inflation neared 50 percent, a suit of clothes could cost a million Continentals, and Congress stopped issuing the notes in 1781.
The disaster gave American English a lasting phrase, "not worth a Continental," and left the young republic so wary of paper money that the federal government issued none for the next eight decades. The irony is complete today: surviving Continentals are prized Revolutionary artifacts that collectors compete to own.
What were the greenbacks of 1861?
The Civil War forced Washington back into the paper money business. In July 1861 Congress authorized $50 million in Demand Notes, printed in $5, $10, and $20 denominations, according to the Bureau of Engraving and Printing. Their green-inked backs stood out against the blank reverses of most bank notes of the era, and Americans nicknamed them greenbacks, a name US currency has never shaken.
When redemption in coin was suspended, Congress passed the Legal Tender Act of February 25, 1862, authorizing $150 million in a new class of currency, according to the US Capitol Visitor Center. These United States Notes, also called Legal Tender Notes, carried distinctive red seals and serial numbers and remained in circulation until 1971, per the US Currency Education Program, one of the longest runs of any American currency class.
What are the major types of US banknotes?
Unlike most countries, the United States ran several classes of currency side by side, each with its own legal basis, backing, and seal color. Collectors organize the entire field by type:
| Type | Era | Hallmark | Why collectors want it |
|---|---|---|---|
| Demand Notes | 1861 to 1862 | The first federal greenbacks | Scarce first issue of modern US paper money |
| United States Notes | 1862 to 1971 | Red seals and serial numbers | Longest-running class, full of classic designs |
| National Bank Notes | 1863 to 1935 | Issuing bank's name, town, and charter number | Hometown collecting from more than 14,000 chartered banks |
| Gold Certificates | 1865 to 1933 | Gold seals, once redeemable in gold coin | Bright gold overprints and gold-standard history |
| Silver Certificates | 1878 to the mid-1900s | Once redeemable in silver; blue seals on small size | Affordable entry point with ornate 19th-century designs |
| Treasury or Coin Notes | 1890 to 1891 | Redeemable in coin, with lavishly engraved backs | Home of the Grand Watermelon, America's most valuable note |
| Federal Reserve Notes | 1914 to present | Issued through the Federal Reserve System | The living series; every modern US note is one |
| High denominations | 1861 to 1945 printings | $500, $1,000, $5,000, and $10,000 face values | Trophy notes, discontinued in 1969 yet still legal tender |
Why do collectors love National Bank Notes?
The National Bank Act, signed by Abraham Lincoln in 1863, let federally chartered banks issue their own currency backed by US government bonds, according to the American Numismatic Association. The result was America's hometown money. More than 14,000 banks were chartered to issue National Bank Notes between 1863 and 1935, per the Society of Paper Money Collectors' Bank Note History project, and every note names its issuing bank, its town and state, and its unique charter number.
That geography is the hook. Collectors hunt notes from their hometown, their home county, or a bank an ancestor once used, and rarity swings wildly from common big-city issuers to small-town banks with only a handful of surviving notes. No other area of US collecting is this personal.
When did US notes shrink to their modern size?
Federal Reserve Notes arrived after the Federal Reserve Act of December 23, 1913 created the nation's central bank, with the first large-size Series 1914 notes following in denominations of $5 through $100. The bigger visual change came in 1929, when every note was reduced by roughly 30 percent to cut costs and standardize designs, according to the US Currency Education Program. The new notes carry the Series 1928 date and first reached the public on July 10, 1929, per the Bureau of Engraving and Printing.
That changeover created the sharp large-size versus small-size divide that still organizes American collecting. The small-size era produced its own famous varieties, including the brown-seal Hawaii overprint notes of World War II, and by the 1970s the Federal Reserve Note stood alone as the only class still being issued.
What happened to the $500 to $10,000 bills?
High-denomination notes date to the very first federal issues of 1861, but the small-size $500, $1,000, $5,000, and $10,000 bills are the ones collectors chase. They were last printed in 1945, and on July 14, 1969 the Treasury and the Federal Reserve announced the denominations would be discontinued due to lack of use, according to the Federal Reserve. They were never demonetized. All US currency issued since 1861 remains valid and redeemable at full face value, per the US Currency Education Program, so a $500 bill still spends, though its collector value is far higher than its face value.
One denomination stands entirely apart. The $100,000 Gold Certificate of Series 1934, printed from December 18, 1934 through January 9, 1935 with Woodrow Wilson's portrait, was issued only to Federal Reserve Banks against an equal amount of gold bullion and never circulated publicly, according to Paper Money Guaranty. Issued examples remain government property that private collectors cannot legally hold; only a few unmonetized specimen printings exist in private hands.
How do you start collecting US banknotes?
Pick a lane first. Type collecting, one representative note from each class in the table above, builds a museum in miniature. Hometown National Bank Notes reward research and patience. Small-size Silver Certificates and early Federal Reserve Notes offer affordable starts. Condition drives value in every lane, so learn the scale in our banknote grading guide and consider certified examples from our graded banknotes selection for significant purchases.
Planet Banknote carries a strong United States collection, including large-size type notes and National Bank Notes, with pieces reaching roughly $18,900, so the same shelf serves a first note and a trophy note; browse the US banknotes collection to see what is available. From there, two side doors are worth knowing: Confederate currency is a related but separate field with its own rules, and our ranking of the most valuable world banknotes shows where American rarities sit on the global stage.
Frequently asked questions
Are old United States banknotes still legal tender?
Yes. All US currency issued since 1861 remains valid and redeemable at full face value, according to the US Currency Education Program. That includes discontinued classes like United States Notes and Silver Certificates and discontinued denominations like the $500 and $1,000 bills. In practice, almost every older note is worth more to collectors than its face value, so have a note evaluated before spending or redeeming it.
Can you legally own a $100,000 bill?
No. The Series 1934 $100,000 Gold Certificate was issued only for transfers between Federal Reserve Banks and never circulated publicly. Issued examples remain United States government property that private collectors cannot legally hold, according to Paper Money Guaranty. Only a small number of specimen printings, which were never monetized, exist in private hands.
What does "not worth a Continental" mean?
It refers to Continental currency, the paper money the Continental Congress issued from 1775 to finance the Revolution. The notes depreciated to pennies on the dollar by 1779 as inflation neared 50 percent, according to the Federal Reserve Bank of New York, and the phrase became American shorthand for anything worthless. Ironically, surviving Continentals are now sought-after collectibles.
What are National Bank Notes?
Currency issued between 1863 and 1935 by federally chartered national banks and backed by US government bonds. Each note names its issuing bank, town, and charter number, and more than 14,000 banks were chartered to issue them, according to the Society of Paper Money Collectors' Bank Note History project. Collectors prize them for their hometown connections and enormous range of rarity.
What is the most valuable United States banknote?
The 1890 $1,000 Treasury Note known as the Grand Watermelon, nicknamed for the bulging green zeros on its back. One example sold for $3,290,000 at Heritage Auctions in January 2014, a record for United States paper money at auction. Our most valuable world banknotes ranking shows how it compares globally.
Planet Banknote is a family-owned dealership in Sarasota, Florida, founded in 2021. Every note is sourced direct from mints, central banks, and authorized distributors, inspected through our Planet Banknote Verified process, and ships with a free Certificate of Authenticity. US orders ship free via USPS Priority, and every order includes a free bonus gift.