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In early 2025, the U.S. Treasury announced the production of pennies will be ceased as a way of reducing government spending because the cost to produce the penny is more than its worth. The U.S. Mint is expected to stop production in 2026.
Having been the first coin produced by the U.S. Mint and remaining in circulation for over 230 years, the penny’s departure will have an impact, but our team is here to assist during this phase-out.
What the Penny’s Departure Means for You:
Existing pennies will remain legal tender, however, as the quantity of pennies in circulation begins dwindling you may encounter some changes.
Cash Transactions – At some retailers, payments made with cash may be rounded to the nearest five cents, as a way of eliminating the need for pennies.
Penny Availability – As the scarcity of pennies increases, banks will experience low penny inventories resulting in limited penny distribution.
What to Do with Your Pennies
Although you may be tempted to keep your pennies, there are a couple things you can do to put them to good use before they are phased out, as it may become more difficult to exchange or deposit them in the future.
Coin Counting – Turn those pennies into cash! Currently, pennies are still being accepted at our Coin Counting Machines. Coin Counting is free for Mechanics Cooperative Bank customers at applicable branches.
Deposits – Depositing your pennies into your Mechanics Cooperative Bank account is also a great way ensuring you get the most out of your coins.