The $2 bill is one of the most fascinating, yet perplexing, denominations of US currency. Despite being legal tender, these notes are seldom seen in everyday transactions. This leads many people to wonder – can you actually use a $2 bill to pay for goods and services?
A Brief History of the Elusive $2 Bill
While uncommon today, $2 bills have been around for a long time. They were first issued in 1862 with Alexander Hamilton’s portrait. In 1869, the design changed to Thomas Jefferson, which remains today.
People in the US never fully embraced the $2 bill for several reasons
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It was associated with bad luck and illegal activities like gambling and bribery in the early 1900s.
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The Treasury Department tried promoting it but failed to gain traction
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In 1966, the $2 bill was discontinued due to lack of demand.
However, the $2 made a comeback in 1976 for the US Bicentennial featuring the signing of the Declaration of Independence on the back. But the public saw these as collectors’ items and held onto them instead of spending normally. This commemorative misconception continues today.
$2 Bills Are Still Being Printed
Here’s the truth – the Federal Reserve has printed $2 bills continuously since 1976. Even though limited quantities are made, they remain valid legal tender that’s recognized by financial institutions and businesses.
The Bureau of Engraving and Printing produces between 80-90 million $2 bills annually. Compare this to over 6 billion other banknotes printed yearly. So while uncommon, they are still part of the US money supply.
Why We Rarely See Them in Circulation
With billions in existence, why don’t we see more $2 bills? Several reasons explain their lack of circulation:
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Lack of public demand – Most people opt for $1 bills out of habit and convenience.
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Confusion over status – Misconceptions persist that they’re rare or obsolete. This leads to hoarding.
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No cash register slot – When first designed in the 1800s, registers didn’t include space for $2 bills. This made stores reluctant to handle them.
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Preference for $1 and $5 – People tend to prefer pricing goods in single dollars or five dollar increments. The $2 bill doesn’t fit neatly.
While you can certainly use $2 bills, social convention has favored other denominations for efficiency. But their legal tender status remains valid.
Businesses Must Accept $2 Bills
Under federal law, all US currency is legal tender that must be accepted as payment. This includes $2 bills – businesses cannot legally refuse or discount them just because they are $2s.
Retailers, restaurants, gas stations, and any merchant must take your $2 notes as they would any other bills. You have the right to pay for items with $2 bills, even if it seems weird or inconvenient to the cashier.
In fact, some people intentionally request $2 bills from banks to spend them and shake up routine transactions.
Fun and Unique Uses for $2 Bills
While not essential for daily purchases, $2 bills can add character:
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Give them as gifts or allowance money – kids love the novelty.
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Use them to easily split checks or bills.
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Tip with them to stand out at restaurants and bars.
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Take some on vacation and leave them as tips to show where you visited.
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Replace worn $1 bills with crisp, clean $2 notes that stay in circulation longer.
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Pay with them just to see cashiers’ surprised reactions! $2 bills always arouse curiosity.
Obtaining $2 Bills from Your Bank
If you want to obtain $2 bills, most banks will order them for you, but usually don’t keep much supply on hand. Request them in advance so your bank can order a pack from the Federal Reserve.
Many banks will set up a standing order to receive a certain amount regularly, such as $100 worth monthly. Distribution may be limited to existing customers.
Banks may also mail requested $2 bills to your home if you have an account. Otherwise, you’ll need to pick up the order at a branch. While taking extra effort, getting $2 bills from banks is very feasible.
$2 Bills Are Here to Stay
Despite misconceptions and low use, the $2 bill remains valid legal tender protected by law. The next time you get one, feel free to spend it! $2 bills may seem odd but are an important, permanent part of US currency.
History 1775 The First $2 Note
The first $2 notes are Continentals and are over a year older than America. On May 10, 1775, the Continental Congress authorizes issuance of the first $2 denominations in “bills of credit” for the defense of American independence.
In order to finance the Civil War, Congress authorizes the U.S. Department of the Treasury to issue non-interest-bearing Demand Notes. These notes earn the nickname “greenbacks” because of their color. All U.S. currency issued since 1861 remains valid and redeemable at full face value.
Congress authorizes a new class of currency, known as “United States notes,” or “Legal Tender notes.” These notes are characterized by a red seal and serial number. They continue to circulate until 1971.
By 1862, the Demand Notes incorporate fine-line engraving, intricate geometric lathe work patterns, a U.S. Department of the Treasury seal, and engraved signatures to aid in counterfeit deterrence. To this day, U.S. currency continues to add features to deter counterfeiting.
The Bureau of Engraving and Printing begins engraving and printing the faces and seals of U.S. banknotes. Before this, U.S. banknotes were produced by private banknote companies and then sent to the Bureau of Engraving and Printing for sealing, trimming, and cutting.
Legislation mandates that all banknotes and other securities containing portraits include the name of the individual below the portrait. This is why you see names below the portraits on banknotes to this day.
The Federal Reserve Act of 1913 establishes the Federal Reserve as the nation’s central bank and provides for a national banking system that is more responsive to the fluctuating financial needs of the country. The Federal Reserve Board issues new currency called Federal Reserve notes.
The appearance of U.S. banknotes changes greatly in 1929. In an effort to lower manufacturing costs, all Federal Reserve notes are made about 30 percent smaller—measuring 6.14 x 2.61 inches, rather than 7.375 x 3.125 inches. In addition, standardized designs are instituted for each denomination, decreasing the number of designs in circulation and making it easier for the public to distinguish between genuine and counterfeit notes.
Because United States notes no longer served any function not already adequately met by Federal Reserve notes, their issuance was discontinued and, beginning in 1971, no new United States notes were placed into circulation.
Got a $2 bill? It could be worth thousands
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