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For example, you might buy a three-month Treasury bill with a face value of $1,000 for $950. When the bill matures, it pays you $1,000, earning you $50 in interest.
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Since 1969 banks are required to send any $5000 bill to the Department of the Treasury for destruction. [2] Examples of the note have become valuable among collectors. In 2024, a graded example of a $5000 bill sold at auction for $144,000. [3] In 2023, an example of the $5,000 Federal Reserve Note sold at Heritage Auctions for $300,000. [4]
Warrants deposited in a bank are routed (based on the MICR routing number) to a collecting bank which processes them as collection items like maturing treasury bills and presents the warrants to the government entity's treasury department for payment to the bank each business day.
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