Not sure how you were using $500 and $1000 bills on the ‘90s since they went out of circulation around 1934
I could deposit them; had them in my wallet (not constantly). They were not out of circulation. Not by a long shot. Yes, it was all legal, LOL.
No bank ever blinked when I deposited except one, BION, in a semi-ritzy area. What morons. Demanded my cash back and deposited at my nearby branch with absolutely no problems.
https://www.moneyfactory.gov/uscurrency/denomsabove100.html
Also: "These notes are legal tender and may be found in circulation today;" (but any collector will pay above face for any such note)
They are still legal tender today - but once they reach a bank they’re gone.
Years ago I was in the Bahamas with $25 silver coins they had discontinued; I bought them here for a few bucks each based on silver price, and they accepted them down there (and their dollar trades 1:1 with ours). Those coins would never re-circulate once deposited.
The Swiss still have 1000 and 500 Swiss franc notes, worth about $1100 and $550 respectively. The EU still has a 500 euro note, but they were going to take it out of circulation soon.
Actually in 1960 for my 18th birthday, my grandfather gave me two thousand dollar bills for my college tuition
I took them to the bank to deposit and the teller wouldn’t accept them. She had to get a supervisor the ok the deposit.