Last updated on April 6th, 2021 at 01:35 am
Last Updated on April 6, 2021 Posted by Colonial Acres Coins
As you may know, many Canadian paper money notes were officially removed from their legal tender status on January 1st, 2021. For the most part, this money can be cashed in for new paper money of the same value. However, you should consider getting your older bills appraised before you take the cash equivalent. Some of them may be worth more than they appear.
Bank Notes Being Removed From Legal Circulation
The Bank of Canada’s paper money only covers a few denominations at a time. Currently, only $5, $10, $20, $50 and $100 bills are issued.
However, typically, notes that aren’t being issued anymore are still considered legal tender. In other words, for example, between 1989 and 2021, you used to be able to use a $1 bill, even though new ones weren’t being printed.
In 2018, amendments to the Bank of Canada Act and the Currency Act passed to allow the Bank of Canada to remove some older bank notes as legal tender. This helps to simplify the money supply and combat counterfeiting. If a bill hasn’t been printed in decades but is still floating around, it can be a significant risk for forgery.
On January 1st, 2021, five banknote denominations officially lost their legal tender status. These were the $1, $2, $25, $500 and $1,000 bills. They can be traded in at a bank for the same face value in current bills (for example, a $25 bill can be exchanged from $20 and $5 bills). This won’t affect much of the money normally in circulation.
- $1 bills haven’t been printed since 1989, having been replaced by coins
- $2 bills were removed in 1996 for the same reason
- $25 notes were only commemorative and of limited mintage
- $500 bills were issued in 1935 before being discontinued shortly after
- $1,000 were withdrawn in 2000
Why You Should Get Money Appraised
However, you should take a moment before you turn your Bank of Canada paper money in for new currency. While you can preserve the face value of the bill, its market value may be greater. If you cash it in without an appraisal, you may miss out on some serious value. Some paper money is very rare today. So, it could be worth collecting, especially if the bill is in good shape.
You can take a look at a Canadian paper money guide to help determine if you have anything that could be worthwhile. If you think you have a valuable bill, get it looked at by a professional appraiser.
What To Expect
It is worth noting that many of the bills being taken out of circulation are only worth their face value or slightly more. Nonetheless, there are some serious finds amongst these bills.
As a general rule, the most valuable bills will be at least 60 years old. So, that $1,000 bill from 1988 is probably worth $1,000. Bills that received very limited runs are almost always worth more than their face values. Additionally, the $1 and $2 bills stopped being issued in 1989 and 1996 and were replaced with coins. Most people would have these bank notes in their collection and keep in mind that some rarer notes could be worth significantly more than face value to collectors.
You could be sitting on a treasure trove of old bills. Plus, those banknotes may get even more valuable as the buyback makes them even rarer. Here are a few examples of rare and valuable Canadian paper money available at Colonial Acres Coins:
- 1935 Canada $1 Osborne-Towers, English, Series A, BCS Certified VF-30 (BC-1)
- 1937 Canada $2 Osborne-Towers, B/B, Very Fine (BC-22a)
- 1954 Canada $50 Beattie-Coyne, Devil’s Face, A/H, PMG Certified AU-58 EPQ (BC-34b)
Find Canadian Paper Money for Your Collection
Collecting Bank of Canada paper money can be a fun hobby. In some cases, it can also be a serious investment. An old $1 bill may be worth tens or hundreds of times its face value. With the supply being thinned out, now may be the time to buy some paper money for your collection. Explore the Colonial Acres Coins catalogue today.