You may not be getting as much for your dollar as you used to, but according to the US Federal Reserve, the bills themselves are lasting longer.
ou may not be getting as much for your dollar as you used to, but according to the US Federal Reserve, the bills themselves are lasting longer.
In a recent report, the Federal Reserve said that back in the 90s the average lifespan for a George Washington was 18 months.
In 2012, that number increased by about 290 percent. Now, the average one-dollar bill stays in circulation for 70 months.
The reason at the top of the list may surprise you.
It turns out that the Federal Reserve upgraded their money counting machines in 2010 and 2011.
The old one would toss out bills that were placed in the stack face down, regardless of their condition.
If the sensors didn’t get a glimpse of George, the machine would discard and destroy them.
Soon after, the order for new money would be sent to the US Bureau of Engraving and Printing, and in no time new ones would be put into circulation – at a cost of 5.4 cents a piece.
Now, the sorter has a new detection system that can authenticate bills from either side.
Some policies were adjusted accordingly, and today the Federal Reserve throws away a lot less money than they used to.