What the Penny Shortage Means for You
The Federal Reserve has announced that the U.S. Mint will no longer manufacture pennies. As a result, banks and businesses across the country are adjusting how they handle cash transactions and penny availability. We're here to help. For more information, read below or contact your local Customer Service Representative.
What you can expect at our Bank:
- Rounding Transactions: Cashback transactions may require rounding to the nearest nickel or result in change being deposited into your account.
- Requests for penny sales may be denied or limited based on the bank’s availability and to ensure fair access to all customers.
- Change Orders for Businesses: Commercial customers may see adjustments in penny orders based on availability.
Why is the Penny Going Away?
The cost of making a penny has become more expensive than the penny is actually worth. Combine that with slowing circulation and a national move toward electronic payments, and the math simply no longer supports keeping the penny in production. As inventories shrink, the Federal Reserve has already begun limiting penny distribution at certain regional centers.
The Federal Reserve does not produce any coins, including the penny. The U.S. Mint issues coins and is part of the Department of the Treasury. In 2025, the Treasury announced that it ended penny production.
The Federal Reserve will continue to fulfill orders of pennies as inventory allows. As a result of Treasury’s decision to end production of the U.S. penny, coin distribution locations accepting penny deposits and fulfilling orders will vary over time as localized inventory is depleted at certain coin distribution locations.
While minting has ended, existing pennies remain legal tender, and banks will continue to accept and process them.
With the removal of the penny, cash transactions will likely be rounded to the nearest nickel. This rounding applies only to cash transactions. Digital transactions (e.g. debit cards, credit cards, online payments, ACH, and mortgage payments) still settle to the exact cent.
We expect more updates from the Treasury and Federal Reserve as inventories decline and rounding becomes more common. For now, there’s nothing customers need to do; just know the penny is on its way out, and we’ll help make the transition predictable.
Need Help?
Check out our Frequently Asked Questions or contact our Help Desk at (866) 733-3444. Our support line is available Monday - Friday from 7am to 7pm, and Saturday from 8am to 12pm.