The Federal Reserve officially ushered into circulation the new $5 bill. The Federal Reserve banks will begin distributing the redesigned $5 bills to customer banks, which will then distribute them to businesses and consumers. Both the new $5 bills and the older-design $5 bills will continue to maintain their full face value.

The new $5 bill incorporates security features that are easy to use by cash handlers and consumers alike. Holding the bill to the light reveals the following features:

Watermarks: There are now two watermarks on the redesigned $5 bill. A large number "5" watermark is located in a blank space to the right of the portrait replacing the previous watermark portrait of President Lincoln found on the older-design $5 bills. A second watermark--a column of three smaller "5"s--has been added to the new $5 bill design and is positioned to the left of the portrait.

Security Thread: The embedded security thread runs vertically and is now located to the right of the portrait on the redesigned $5 bill. The letters "USA" followed by the number "5" in an alternating pattern are visible along the thread from both sides of the bill. The thread glows blue when held under ultraviolet light.