$500 Dollar Bills in HistoryCurrency collection is often overlooked by numismatists, but with such a variety of large and small-type Federal Reserve Notes to choose from, collectible currency can be just as rewarding and valuable as collecting coins. A rare find today, $500 dollar bills are still genuine U.S. Legal Tender. Last printed in 1945, the government stopped the distribution of this denomination by 1969. Initially, $500 dollar bills were used for transactions between banks and large private exchanges, such as a down payment on a house. Therefore, these notes were seldom seen in circulation.