Federal Reserve On Ordering Currency

Ordering Currency

Other features to facilitate the money-handling process already have been implemented. For example, banks can order currency through an automated telephone system. In place for three years, the system allows bankers to use the buttons on a touch-tone phone to order exact amounts of needed currency. Once the order is placed, the machine reads it back to ensure accuracy. "The system is a great timesaver for us because it eliminates any confusion about what has been ordered," Holm said.

Ordering money is a serious job for bankers. "They need to plan ahead," Holm said. It generally takes two to three days before a bank actually receives ordered currency. Banks typically order currency so they have greater supplies on days consumers need money most—generally the days before weekends and holidays. The month of December also is a high demand period for currency, particularly new currency that customers frequently give as gifts.

The Minneapolis Fed, which handles about 85 percent of the district's currency needs, has an extensive armored car route network that serves much of the Dakotas, Minnesota, Wisconsin and Michigan's Upper Peninsula. The Helena, Mont., branch has an armored car route that covers much of Montana. Currency transportation costs are picked up by the financial institutions on the car routes. Banks with no armored car service rely on the U.S. mail for currency shipments. Banks are generally serviced once a week, although some areas only demand service every two weeks.

Banks located far from a Federal Reserve bank office, however, are not penalized. Money deposited in a Fed bank is credited the moment it is loaded onto the armored car. Currency ordered is not charged until it is received by the bank.