What does a red seal on a dollar bill mean?
Seal color tells you who issued the note and what backed it. Red belongs to United States notes, which the Treasury issued on its own authority. They trace back to the Civil War, when Congress passed the Legal Tender Act of 1862 so the government could pay its bills with paper money that wasn't redeemable in gold or silver at the time. Those early large notes, printed green on the back, gave us the word greenback.
When the government switched to the smaller bill size used today, the first small notes reached the public in July 1929. United States notes came along in that new size with a red seal and red serial numbers and they stayed in production in a handful of denominations until the late 1960s.
Small-size red seal United States notes
| Denomination | Series | Portrait | Back |
|---|---|---|---|
| $1 | 1928 only | George Washington | Large ONE design shared with the 1928 silver certificate |
| $2 | 1928 to 1928G, 1953 to 1953C, 1963 and 1963A | Thomas Jefferson | Monticello |
| $5 | 1928 to 1928F, 1953 to 1953C, 1963 | Abraham Lincoln | Lincoln Memorial |
| $100 | 1966 and 1966A | Benjamin Franklin | Independence Hall |
Which seal colors mean what?
If you're sorting a stack of old money, seal color is your first cut. Here's the quick key for small-size notes:
- Red: United States note
- Blue: silver certificate
- Green: Federal Reserve note, the money in your wallet
- Gold or yellow-orange, with matching serial numbers: gold certificate
- Brown: 1929 National Bank note or Federal Reserve Bank note, or a World War II HAWAII overprint note
- Yellow with blue serial numbers: World War II silver certificates made for troops in North Africa and Europe
Why did the Treasury stop issuing red seal notes?
Over the twentieth century, Federal Reserve notes took over the job of everyday money and United States notes became a leftover. A law going back to the 1870s still required a fixed amount of them to stay outstanding, so the Treasury kept printing a few. When the $2 and $5 United States notes were discontinued in August 1966, the Treasury issued the $100 United States note to keep that legal requirement met. Public distribution of United States notes ended in January 1971.
In 1994 Congress relieved the Treasury of any duty to reissue them. Red seal notes that come back through the banking system are now canceled and destroyed instead of being paid out again, so the number in existence only goes down.
Are red seal notes worth anything?
Most are worth more than face value, but not by as much as people hope. The common $2 and $5 notes in worn condition sit in the small premium band. Crisp uncirculated notes, star notes and the scarcer series letters move up into the collector premium band. The 1928 $1 and the 1966 $100 are scarcer types to begin with, so even average examples command a collector premium.
What moves a red seal up the ladder is the same as for any note:
- Condition: no folds, crisp paper and sharp corners make the biggest single difference
- Star notes: a star in the serial number marks a replacement note printed in small numbers
- Series letter: some letters, such as the 1928B and 1928E $2 or the 1928D $5, had small printings
- Fancy serial numbers: very low numbers, solids, ladders and radars
- Errors and mules: misprints, mismatched serials and plate number combinations that collectors track
Is there a red seal $10 or $20?
Not in small size. No small-size $10 or $20 United States note was ever issued to the public. If you have a small-size $10 or $20 with a red seal, look closer: it's very likely a gold certificate whose orange seal has faded or darkened, or a novelty copy. Large-size United States notes from before 1929 came in many more denominations, but they are a much bigger and different note.
Can you spend a red seal bill?
Yes. United States notes remain legal tender at face value and a bank will accept one. You almost never should, because even a tired red seal $2 or $5 is worth more to a collector. The one time it makes sense is with a badly damaged note that has no collector appeal. The government will redeem a mutilated note as long as more than half of it remains.
What should you do if you find a stack of red seals?
Don't flatten, clean or sort them with rubber bands. Lay them out by denomination and series, then check each one for a star and for unusual serial numbers. Pull out anything crisp. Put the best notes in currency sleeves.
A pile of worn 1953 and 1963 $2s and $5s is a nice inheritance, but it's sold as a group at a modest premium per note. The notes worth individual attention are the crisp ones, the stars and anything from the list of scarcer series. The pages for each denomination explain the signatures and series letters in detail.
Frequently asked questions
What does a red seal on a $2 bill mean?
It means the note is a United States note issued by the Treasury. Red seal $2 notes were issued from Series 1928 through 1963A.
Are red seal $5 bills worth anything?
Yes, most are worth a small premium in worn condition. Crisp notes, star notes and the scarcer 1928D are worth more.
Are red seal bills still legal tender?
Yes. United States notes are still legal tender at face value, though collectors will usually pay more.
Why did they stop making red seal money?
Federal Reserve notes took over everyday use. The last United States notes were distributed to the public in January 1971.
Sources: United States Note (Wikipedia) · Series of 1928 (United States currency) (Wikipedia) · Bureau of Engraving and Printing frequently asked questions (archived) · Gold certificate (United States) (Wikipedia)