Quick Answer: National Bank Notes (1863-1935) are among the most collectible U.S. currency types. Values range from $30 for common 1929 small-size notes from major city banks to over $100,000 for rare territorial notes from small-town banks. The issuing bank's rarity is the single biggest factor in determining value, followed by condition, denomination, and charter period.
Over 14,000 federally chartered banks across America once issued their own paper currency. Each note carried the bank's name, city, state, and charter number, making every National Bank Note a piece of local history. Whether you inherited a note from Grandma's collection or found one at an estate sale, this guide will help you determine what it's worth.
What Are National Bank Notes?
National Bank Notes were U.S. currency issued by individual, privately owned banks under the National Banking Acts of 1863 and 1864. Congress created the national banking system to establish a uniform currency and help finance the Civil War.
Each participating bank deposited U.S. government bonds with the Treasury as security, then received authority to issue paper money up to 90% of the bonds' value. The Bureau of Engraving and Printing printed the notes, but each one carried the individual bank's name, location, officers' signatures, and unique charter number.
The program ran from 1863 until 1935, when the last national bank notes were issued. In total, exactly 14,348 banks participated across all U.S. states and territories.
How to Identify a National Bank Note
National Bank Notes have distinctive features that set them apart from other U.S. currency:
- "National Currency" printed prominently on the face
- Bank name in full, such as "The First National Bank of Chicago"
- City and state of the issuing bank
- Charter number (assigned when the bank was chartered)
- Officers' signatures from the bank's president and cashier
- Treasury seal (color varies by charter period)
Large-Size vs. Small-Size Notes
| Feature | Large-Size (1863-1929) | Small-Size (1929-1935) |
|---|---|---|
| Physical size | 7.375" x 3.125" | 6.14" x 2.61" (modern size) |
| Seal color | Red, blue, or brown (varies by series) | Brown |
| Design variety | Multiple design types per charter period | Two types (Type 1 and Type 2) |
| Typical value | $75-$25,000+ | $30-$10,000+ |
| Collectibility | Higher demand, more design variety | More affordable entry point |
Large-size notes are physically larger than modern currency and feature intricate engraving. If you're unfamiliar with the size difference, our large size currency guide covers these historic oversized bills in detail.
The Three Charter Periods
National Bank Notes are organized by three charter periods, each with distinct designs and seal colors. Understanding which period your note belongs to is essential for accurate valuation.
First Charter Period (1863-1882)
The earliest and generally most valuable National Bank Notes. These feature the "Original Series" and "Series 1875" designations.
| Denomination | Circulated (VG-VF) | Uncirculated (MS-63+) |
|---|---|---|
| $1 | $300-$1,500 | $2,000-$8,000+ |
| $2 | $500-$2,500 | $3,000-$15,000+ |
| $5 | $200-$1,000 | $1,500-$6,000+ |
| $10 | $250-$1,200 | $1,800-$7,500+ |
| $20 | $400-$2,000 | $3,000-$12,000+ |
| $50 | $1,500-$8,000 | $10,000-$50,000+ |
| $100 | $2,000-$10,000 | $15,000-$75,000+ |
Values represent common-to-moderately-rare banks. Extremely rare banks command multiples of these figures. Pricing based on Heritage Auctions realized prices and Greysheet wholesale data.
Second Charter Period (1882-1902)
Second Charter notes come in three main varieties: Brown Backs, Date Backs, and Value Backs.
| Type | Seal Color | Distinguishing Feature | Relative Value |
|---|---|---|---|
| Brown Back | Brown | Ornate brown design on back | Highest of the three |
| Date Back | Brown | "1882-1908" on back | Moderate |
| Value Back | Blue | Denomination spelled out on back | Moderate to high |
Typical value ranges for Second Charter notes:
| Denomination | Brown Back (VF) | Date Back (VF) | Value Back (VF) |
|---|---|---|---|
| $5 | $250-$800 | $200-$600 | $250-$700 |
| $10 | $300-$1,000 | $250-$750 | $300-$850 |
| $20 | $400-$1,500 | $300-$1,000 | $400-$1,200 |
| $50 | $1,000-$5,000 | $800-$3,500 | $1,000-$4,000 |
| $100 | $1,500-$7,500 | $1,200-$5,000 | $1,500-$6,000 |
An 1882 $5 Brown Back from Torrington, Connecticut graded PCGS Gem New 66 PPQ sold for thousands at Heritage Auctions, illustrating how condition dramatically affects value.
Third Charter Period (1902-1929)
The most common large-size National Bank Notes. Three varieties exist: Red Seals, Date Backs, and Plain Backs.
| Type | Seal Color | Production Period | Relative Scarcity |
|---|---|---|---|
| Red Seal | Red | 1902-1908 | Scarce |
| Date Back | Blue | 1908-1916 | Moderate |
| Plain Back | Blue | 1916-1929 | Common |
Red Seals from the 1902 series are the most desirable of the Third Charter notes. A 1902 $10 Red Seal Serial #1 from Nogales, Arizona Territory sold for $231,750 at auction, demonstrating the extreme premium that territorial notes and Serial Number 1 notes can command.
Small-Size National Bank Notes (1929 Series)
The 1929 series represents the final chapter of National Bank Note production. These notes are the same physical size as modern currency, making them the most affordable entry point for collectors.
Type 1 vs. Type 2
| Feature | Type 1 | Type 2 |
|---|---|---|
| Charter number | Appears twice | Appears four times |
| Production period | 1929-1933 | 1933-1935 |
| Relative availability | More common | Less common |
| Premium | Baseline | Slight premium for same bank |
1929 Series Value Guide by Bank Rarity
| Bank Category | Examples | $5 Value | $10 Value | $20 Value |
|---|---|---|---|---|
| Common city bank | Major metro banks, New York, Chicago | $30-$60 | $35-$65 | $40-$75 |
| Medium city | Mid-sized banks, regional institutions | $50-$150 | $60-$175 | $75-$200 |
| Small town | Rural community banks | $100-$500 | $125-$600 | $150-$700 |
| Rare bank | Few surviving notes known | $500-$2,000 | $600-$2,500 | $750-$3,000 |
| Very rare bank | Fewer than 10 notes known | $2,000-$10,000 | $2,500-$12,000 | $3,000-$15,000 |
$50 and $100 1929 National Bank Notes are considerably scarcer across all bank categories, typically commanding 2-5x the values listed for $20 notes.
What Makes a National Bank Note Valuable?
1. Issuing Bank Rarity (Most Important Factor)
The single biggest determinant of value is which bank issued the note. Of the 14,348 chartered banks, some issued millions of dollars in currency while others issued only a few thousand.
Most valuable bank categories:
- Territorial banks: Notes from Arizona Territory, Alaska Territory, Hawaii Territory, Indian Territory, and other pre-statehood banks are extremely rare and valuable
- Short-lived banks: Banks that operated for only a few years before failing produced very few notes
- Small-town banks: Rural banks in tiny communities with minimal note circulation
- Single-note banks: Some banks have only one or two known surviving notes
A note from a common New York City bank might be worth $40 in circulated condition, while the same denomination and condition from a small Wyoming bank could be worth $2,000 or more.
2. Condition
Condition significantly affects value, especially for notes from common banks where supply exceeds collector demand at higher grades.
| Grade | Description | Value Multiplier vs. VF |
|---|---|---|
| Good (G-4 to G-6) | Heavy wear, all details visible | 0.4x-0.6x |
| Very Good (VG-8 to VG-10) | Moderate wear, clear details | 0.6x-0.8x |
| Fine (F-12 to F-15) | Light to moderate wear | 0.8x-0.9x |
| Very Fine (VF-20 to VF-35) | Light wear on high points | 1x (baseline) |
| Extremely Fine (EF-40 to EF-45) | Minimal wear, crisp | 1.5x-2x |
| About Uncirculated (AU-50 to AU-58) | Trace handling only | 2x-3x |
| Uncirculated (MS-60 to MS-63) | No wear, possible handling marks | 3x-5x |
| Gem Uncirculated (MS-65+) | Pristine, exceptional eye appeal | 5x-10x+ |
For detailed guidance on evaluating condition, see our paper money grading guide.
3. Charter Period and Type
Earlier charter periods are generally more valuable because fewer notes survive. Within each period, certain types command premiums:
- First Charter notes are the oldest and most valuable as a group
- Red Seal notes (Second and Third Charter) carry premiums over other seal colors
- Brown Backs are the most sought-after Second Charter type
- 1929 Type 2 notes often carry a slight premium over Type 1 from the same bank
4. Denomination
Higher denominations are scarcer because people were less likely to save them, and banks issued fewer of them:
- $1 and $2 notes exist only in First Charter period and are quite rare
- $5 and $10 notes are the most common denominations
- $20 notes are moderately scarce
- $50 and $100 notes are significantly scarcer and command strong premiums
5. Serial Number
Low serial numbers, especially Serial Number 1, add meaningful value. Heritage Auctions regularly features Serial Number 1 National Bank Notes, and they consistently bring strong premiums. A Serial Number 1 note from an otherwise common bank can be worth several times the normal price.
The Most Valuable National Bank Notes
These represent the pinnacle of National Bank Note collecting, with values reaching six figures:
| Note | Why It's Valuable | Approximate Value |
|---|---|---|
| Territorial notes (AZ, AK, HI, etc.) | Extreme rarity, pre-statehood | $5,000-$200,000+ |
| First Charter $50 and $100 | Very few survive | $5,000-$75,000+ |
| National Gold Bank Notes (CA) | Only seven California banks issued them | $1,000-$50,000+ |
| Red Seal Serial #1 notes | Combination of type rarity and serial | $2,000-$231,750+ |
| Sole surviving notes | Only known example from a bank | $10,000-$100,000+ |
National Gold Bank Notes deserve special mention. These were issued by seven banks in California between 1870 and 1875, redeemable in gold coin. They feature images of U.S. gold coins on the back and are among the rarest and most beautiful American banknotes. Values for even low-grade examples start around $1,000, with high-grade pieces reaching $50,000 or more.
How to Research Your National Bank Note
Follow these steps to determine what your note is worth.
Step 1: Record the Key Details
Gather this information from your note:
- Denomination ($1, $2, $5, $10, $20, $50, or $100)
- Charter number (printed on the face, sometimes in a scroll design)
- Bank name and location (full name including city and state)
- Series year or charter period (Original, 1875, 1882, 1902, or 1929)
- Seal color (red, blue, or brown)
- Serial number (low numbers are more valuable)
Step 2: Look Up the Issuing Bank
Several resources can help you determine your bank's rarity:
- Heritage Auctions National Bank Notes Index: Browse by state to see auction records for your bank
- PMG Population Report: Check how many notes from your bank have been graded
- PCGS Currency Population: Another grading population database
- Don C. Kelly's "National Bank Notes": The standard reference book for the series, listing known surviving notes by bank
Step 3: Assess Condition Honestly
Be realistic about your note's condition. Common grading mistakes:
- Notes that have been pressed or ironed may appear uncirculated but have hidden folds
- Stains, writing, tears, and pinholes all reduce value
- True uncirculated National Bank Notes are much rarer than most sellers believe
- When in doubt, assume a lower grade until professionally evaluated
Step 4: Get a Professional Opinion
For notes potentially worth $200 or more, consider professional grading from PMG or PCGS Currency. A graded note in a certified holder sells for more than an ungraded "raw" note because buyers trust the authentication and condition assessment.
Where to Buy and Sell National Bank Notes
Buying
- Heritage Auctions: The largest selection of National Bank Notes at auction
- Currency shows: Major shows like the FUN Convention, Memphis Paper Money Show, and ANA World's Fair of Money offer extensive dealer inventories
- Specialized dealers: Many currency dealers focus specifically on National Bank Notes from certain states or charter periods
- Online marketplaces: eBay has a large selection, though authentication risk is higher for ungraded notes
Selling
For notes worth under $200, online platforms like eBay reach the broadest audience. For more valuable notes, Heritage Auctions or a specialized currency dealer will typically achieve the best prices. Professional grading before selling adds credibility and often increases the realized price by 20-50%.
See our complete guide on where to sell old paper money for detailed strategies by value tier.
Building a National Bank Note Collection
Popular Collecting Approaches
- By state: Collect one note from every state that issued national currency
- By hometown: Find notes from banks in your own city or county
- By charter period: Focus on one era (First Charter, Second Charter, etc.)
- By denomination: Build a complete set of denominations within a charter type
- Type collecting: One example of each major design type across all charter periods
Budget-Friendly Starting Points
You don't need thousands of dollars to start collecting National Bank Notes. Here are affordable entry points:
| Budget | What You Can Find |
|---|---|
| $30-$75 | 1929 notes from common city banks in circulated condition |
| $75-$200 | 1929 notes from smaller banks, or common large-size Plain Backs in lower grades |
| $200-$500 | Small-town 1929 notes, or mid-grade large-size notes from common banks |
| $500-$1,500 | Scarce bank notes, attractive large-size notes in VF condition |
If you're new to currency collecting, start with our beginner's guide to collecting paper money for foundational advice on handling, storage, and building a focused collection.
Storage and Preservation
National Bank Notes, especially large-size examples, require proper storage:
- Use acid-free currency holders sized appropriately for the note
- Store flat in a cool, dry environment
- Never fold, staple, or tape a collectible note
- Keep away from direct sunlight and humidity
- For valuable notes ($500+), consider a safe deposit box or fireproof safe
Common Mistakes When Valuing National Bank Notes
Mistake 1: Assuming age equals value. A First Charter note from a major city bank can be worth less than a 1929 note from a tiny rural bank. Issuing bank rarity matters more than age alone.
Mistake 2: Overestimating condition. Many notes described as "uncirculated" by sellers actually show evidence of circulation. Learn the basics of paper money grading before making assumptions.
Mistake 3: Ignoring bank rarity. Two identical-looking $5 1929 notes can differ in value by thousands of dollars based solely on which bank issued them. Always research the specific bank.
Mistake 4: Confusing National Bank Notes with Federal Reserve Bank Notes. Both say "National Currency" and have brown seals, but Federal Reserve Bank Notes name one of the 12 Federal Reserve Banks rather than a local bank. Check whether the issuing institution is "The Federal Reserve Bank of..." or a local bank name.
How CashScan Helps with National Bank Notes
CashScan makes identifying National Bank Notes faster. Open the app, point your camera at the note, and CashScan helps you identify the denomination, series, and key features. From there, you can research the specific issuing bank and charter number to determine rarity and value.
For notes from rare banks or with unusual serial numbers, CashScan's identification features give you the foundation to research value accurately.
Frequently Asked Questions
What is a National Bank Note?
A National Bank Note is U.S. currency issued between 1863 and 1935 by one of over 14,000 federally chartered local banks. Each note displays the issuing bank's name, city, state, charter number, and officers' signatures. They are sometimes called "national currency" and are backed by U.S. government bonds that the issuing bank deposited with the Treasury.
How much are National Bank Notes worth?
Values range from $30 for common 1929 small-size notes from major city banks to over $100,000 for rare territorial notes. The issuing bank's rarity is the primary value driver. A 1929 $5 note from a common bank might be worth $35, while the same denomination from a rare small-town bank could be worth $2,000 or more.
What is a charter number on a National Bank Note?
The charter number is a unique identifier assigned to each bank when it received its federal charter. It appears on the face of the note, often in a scroll or shield design. Charter numbers range from #1 (The First National Bank of Philadelphia) to over 14,000. Lower charter numbers generally indicate older banks, though the number itself doesn't directly determine value.
Are 1929 National Bank Notes valuable?
Yes, though values vary enormously. Common city bank notes in circulated condition are worth $30-$75. Notes from small-town banks, rare states, or in uncirculated condition can be worth $100 to $10,000+. The $50 and $100 denominations are considerably scarcer and more valuable than $5, $10, or $20 notes.
What's the difference between a National Bank Note and a Federal Reserve Note?
National Bank Notes were issued by individual local banks (1863-1935) and carry the bank's name, charter number, and officers' signatures. Federal Reserve Notes are issued by the 12 Federal Reserve Banks and are the only type of U.S. paper currency still produced today. National Bank Notes typically have brown Treasury seals (on small-size notes), while modern Federal Reserve Notes have green seals.
How do I know if my National Bank Note is rare?
Research the charter number and bank name. The fewer surviving notes known from that bank, the rarer (and more valuable) your note is. Notes from territorial banks (pre-statehood), short-lived banks, and very small towns are generally the rarest. Census data from PMG and PCGS can help you determine how many notes from your bank have been certified.
Should I get my National Bank Note graded?
Professional grading from PMG or PCGS is recommended for notes worth $200 or more. Grading authenticates the note, assigns a standardized condition grade, and encapsulates it in a protective holder. Graded notes sell for more than ungraded "raw" examples because buyers have confidence in authenticity and condition.
Are National Bank Notes still legal tender?
Technically, National Bank Notes remain legal tender at face value. However, spending one would be a significant financial mistake since even the most common examples are worth many times their face value to collectors.
Conclusion
National Bank Notes represent one of the most fascinating and diverse areas of U.S. currency collecting. With over 14,000 issuing banks spread across every state and territory, the potential for discovery is enormous. A note from your own hometown, a rare territorial issue, or a pristine First Charter example can be the centerpiece of an impressive collection.
Start by identifying what you have: charter period, denomination, issuing bank, and condition. Research the bank's rarity using auction records and census data. And if you suspect your note is valuable, professional grading from PMG or PCGS will establish its authenticity and condition for the market.
For more on valuable U.S. currency, explore our guides on rare dollar bills worth money, error bills worth money, and star notes.
Found a National Bank Note? Scan it with CashScan to quickly identify the denomination, series, and key details. Then research your specific bank to uncover its true collector value.
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