Collectors appreciate paper money because the designs can be beautiful and intricate. Even when you focus on one bill type or a single government, you can display an exceptionally diverse set of items.
Some of the earliest forms of paper money were introduced in China during the Ming Dynasty. Examples from the 14th century were printed on mulberry bark.
Paper money started becoming commonplace around 1770, meaning American printers became part of an emerging trend while establishing a new country. The paper would circulate with coins for the next two hundred years to facilitate bartering.
In the 1980s, Australia was one of a few nations that started making plastic money instead of paper bills. This currency is treated like other forms, but is often contained in a separate collection category.
In 2005, Paper Money Guaranty was founded to provide accurate grading services for collectors. Although any older money has value (and its face value) to consider, the 1950 5-dollar bill is a popular choice for many collectors.
1950 5-Dollar Bill: Why You Want It, and What It’s Worth
The five-dollar bills issued by the US government in 1950 have collectability like coins from that era. An uncirculated 1950 star note is valued at $400 or more, depending on its overall grading. The ones issued by the Federal Reserve Bank (FRB) in Minneapolis hold the most value.
Paper money has value because many people agree with how much it offers. That makes it an essential bartering tool for acquiring goods and services.
People don’t work for free. In the past, when coins and paper currency weren’t available, the bartering system would trade one set of goods for another. If you were a farmer, you could sell wheat to the blacksmith who forged a plow.
Today’s workers trade their time and productivity in the United States for dollars, health benefits, and other perks.
Old currency is collectible because of the rarity it provides. One of the best examples is the 1943 steel penny, which sells at auction for more than $1,000 when it is in an uncirculated condition.
All older paper currency follows the same path as coinage. It may be worth more than its face value if it is in excellent condition. The 1950 five-dollar bill is one of the best modern examples of this phenomenon.
The value of the 5-dollar bill from this year depends on its series and if it is a star note. Six series are currently available, ranging from A to E.
Chart for Determining the Value of a 1950 5-Dollar Bill
The five-dollar bill is a Federal Reserve Note that can be spent at its face value if the amount is intact. There is only one seal variety in this series, and it is green.
You can tell what series the 5-dollar bill is from by looking at the first letter of the serial number. In 1950, you will see the letters A to E on the bill.
You can tell it is from 1950 because the money says “Series 1950” next to the Secretary of the Treasury’s signature.
Each series has a different valuation based on its condition and grading. Here are the estimates for each one from 1950.
| 5-Dollar Bill Series | Estimated Value: Very Fine | Estimated Value: Uncirculated |
| 1950 Series A | $10.00 to $15.00 | $25.00 to $37.50 |
| 1950 Series B | $8.00 to $12.50 | $35.00 to $40.00 |
| 1950 Series C | $8.00 to $10.00 | $30.00 to $40.00 |
| 1950 Series D | $8.00 | $20.00 to $25.00 |
| 1950 Series E | $10.00 | $35.00 |
| 1950 Series Star | $15.00 to $60.00 | $75 to $400 or More |
In the 1950-D series, the bills issued from the Federal Reserve Bank in Dallas tend to be more valuable.
If you have a 1950-E series five-dollar bill, the ones issued from Chicago or San Francisco tend to be worth more.
Each series has star notes. Since these are replacement bills, there are fewer of them. That makes them rarer, providing more value to the collector.
What Is the Grading System for Paper Money?
Paper money products are graded on a numerical scale between 1 to 70. If you get closer to 70, it has more value because the product has fewer visible imperfections or wear and tear.
Although this scale is used to communicate information, most collectors agree that the meaning is arbitrary. Value is determined by how much someone is willing to pay for a specific item at that particular moment.
Several grading terms are associated with the numerical scale to give each one more initial information. From the worst to the best, here are the potential descriptions that you can find when looking for a 1950 five-dollar bill.
- Poor
- Good
- Very Good
- Fine
- Very Fine
- Extremely Fine
- About Uncirculated
- Choice Uncirculated
- Gem Uncirculated
When looking at the estimated value of uncirculated 1950 five-dollar bills, the standard is an MS63 grade. That means it scores 63/70 on the numerical scale.
The best notes have a 70 score. This evaluation gives it a rating called EPQ (exceptional paper quality). That allows it to carry the “gem uncirculated” designation, showing it has the most potential value because of its condition.
If your 5-dollar bill receives a 69 EPQ rating, the paper’s condition is still excellent. The note might have lines, serial numbers, or a slightly off-center registration. There should be no signs of handling.
A 68 EPQ bill might have minor signs of handling and other imperfections to consider. As the grading number declines, you’ll see changes to the printing, aging concerns, and other minor problems. Everything above 64 is regarded as a “gem” or “super gem” for collecting.
If you have an MS63 1950 five-dollar bill, you have a “choice uncirculated” product. There should be no signs of folding, although the margins could be off-center with the printing. Unlike 60-62 EPQ bills, there should be no counting smudges, fading, or stains.
What Does the Star Designate on the Five-Dollar Bill?
Until 1995, all Federal Reserve notes offered a serial number consisting of a single letter, eight digits, and then another letter. Only $1 and $2 bills continue to use this format.
The first letter identifies the Federal Reserve Bank that issued the note. Since there are 12 FRBs today, the letter is always between A and L on modern bills.
The final letter advances when that specific FRB prints all eight-character serial numbers. The letters “O” and “Z” are excluded because of their similarities to the numbers “0” and “2,” so they’re reserved for test printings.
Some currencies have a star at the end of the serial number instead of a letter. These bills replace the original one when a printing error occurs.
Since it is against the FRB’s policy to produce a serial number more than once, the printer adds a star to the end to designate what happened.
Printing errors are uncommon, so there aren’t many in circulation. Any bill with a star note is typically more valuable than its face value. That’s why it pays to look closely at your money when you receive it.
Other Reasons Why a 1950 5-Dollar Bill is Valuable
Collectors like to have specific styles or types of serial numbers with their bills. If you can find a 1950 five-dollar bill with one of the following attributes, the value of it could double – including those with an MS63 grade or higher.
1. Low Serial Number
Collectors want bills with the lowest serial number possible. The value can skyrocket if you can get to anything below 1,000 on your 1950 five-dollar bill.
If you have one of the 00000001 bills from the 1950 series of five-dollar bills, the value could be 15x the estimated amount.
Anything below 00000100 is considered highly valuable to a collector.
How valuable is a low serial number? You can find circulated 5-dollar bills rated good or poor from 1950 with a star that sells for $25 or more.
2. High Serial Number
Some collectors prefer collecting the highest serial number possible in each series. The 1950 five-dollar bills marked with 99999900 or higher typically fetch the best prices.
Although the value isn’t as high as the lowest numbers, there is still more potential than an arbitrary designation.
3. Flipper Numbers
Flipper serial numbers are notes where the number can be read upside-down or right-side up. The best version of this option would be 0069000.
The premium is typically between 2x to 4x the expected value of very fine to uncirculated versions of the five-dollar bill.
4. Repeater Serial Numbers
Collectors look for blocks of repeating digits within a serial number because of the rarity it offers. The most valuable ones are called “super repeaters” because they only repeat two digits.
A great example of a high-value super repeater is 01010101. If you have a three-digit block, such as 38938938, you can get between 2x to 3x the amount of the published value from some collectors.
Another option is a four-digit block with two numbers, such as 11110000.
5. Solid Serial Numbers
Since each printing comes with an eight-digit serial number, you will find nine bills per assigned letter that have what is called a “solid assignment.”
Only about one out of every 11 million notes issued by the US government contains a solid serial number.
That makes their rarity high enough that some collectible bills sell for more than 500x their stated value compared to a random number.
Because the first bill in each sequence is 00000001, the first solid is 11111111. It tends to have the most value, but it is worth collecting anything with the exact number.
Even if the serial number is on a circulated bill, it has significant value.
If you could find a 1950 5-dollar star bill with a solid number, the theoretical value of that item could be up to $200,000 if it is MS63-graded. Even if it is not, it could be worth $3,000 or more.
6. Binary Serial Numbers
A binary serial number is like a super repeater, but it doesn’t have the two digits in an exact repetition.
Whereas a super repeater would be 01010101, a binary bill might be 10011011. These bills tend to have the same value as the repeaters, although star bills are the most popular choice in this category.
You could potentially see a premium of 3x to 10x with this option.
7. Error Cuts
Although some collectors like to have misprints or errors in their collection, these items don’t always have more value.
The reason why people collect paper money typically involves perfection. They want the best example of each bill that they can afford.
If an error cut occurred on a star bill with a solid serial number, it might have enough scarcity and rarity to create a third value point to consider.
When a bill is circulated, has fold lines, and is in generally poor condition, a seller with a high price on an error cut is just trying to get rich quickly.
Collectors typically avoid these listings and products, and so should you.
Is the Value of Collectible Money Real or Hype?
As money ages, fewer versions of an uncirculated example become available. These options have a face value, but they also have a rarity to collectors that puts an additional premium on that price. The combination of rarity and scarcity allows some paper bills to sell at more than 400 times their original face value.
The problem with cash is that people tend to use it. If you receive a $100 bill as part of your wages, you’re more likely to use it to buy groceries than frame it or send it to a grading specialist.
In 1950, the value of a $5 bill was equivalent to $60 today. Can you imagine stashing one without folding it in the hopes of it being a collectible?
That’s why rarity and scarcity play a significant role in collecting paper currencies.
The 1950 series is popular with collectors because it has a little bit of everything. You can find fun serial numbers, uncirculated bills, and star notes. Everyone can find something that they love.
