No, not usually. If it is in circulation, they use it as it should be. If it is not in circulation, they trade it to the Reserve Bank - who buys it from them dollar for dollar - and it is then destroyed.
When a coin is being withdrawn from circulation, there is usually an advance notification of the withdrawal, followed by a grace period when people can get rid of these coins at their local bank....
Yes - BUT only for face value. They're not allowed to pay collector value, so it doesn't make much sense to turn in old bills at a bank unless you know they have no collector value. If they do have...
Banks don't buy old coins, coin dealers will buy old coins, some jewelry stores will buy old coins, banks will take your old coins at face value and then sell them to coin dealers and and make some...