Penny production is expected to stop in 2026, a direction from President Trump to U.S. Department of the Treasury. We’re not the first country to do away with this bottom-of-the-barrel currency. It costs 3.69 cents to produce and distribute a single penny, according to U.S. Mint’s 2024 Annual Report, which translates to an $85 million loss for the U.S. Mint in 2024 alone.
While the penny can still be used as legal tender, banks – including Banterra – can no longer reliably order new pennies from the Federal Reserve.
What This Means For You
- Penny Supply - Banterra will continue to provide pennies while our supply lasts, however, this supply may soon be depleted.
- Cashing A Check – If you want to cash a check that requires pennies, it may be rounded to the nearest nickel, or you can deposit the check and then make a withdrawal to the nearest nickel.
- Closing An Account – If you close an account that requires pennies, we can write you a check or your balance in cash may be rounded to the nearest nickel.
What Can You Do
- Consider Cashing In Your Pennies – We bet you have a jar full of pennies. Consider cashing them in at your local Banterra Bank.
- Start Rounding – Whether you are running a retail business or you are a consumer, it is anticipated that you might need to start rounding totals to the nearest five cents.
- Digital Banking – With Banterra’s Digital Banking, it is easy to pay with digital payments. You can use your Banterra Visa® Debit Card, which is also available in Digital Wallet, you can pay bills through Bill Pay, pay individuals with Person-To-Person (P2P) Payments, and make transfers to your different accounts.
Business Customers
We recommend having a plan of action for your business when it comes to the limited penny supply. Consider these things:
- Rounding cash transactions to the nearest five cents.
- Establish procedures for handling coin inventory and shortages.
- Clearly communicate to your customers your policy for this situation.
- Ensure that your employees are trained for this policy.
One thing to remember, there are billions of pennies in circulation. This just means banks and other businesses may have shortages and you should expect rounding to nearest five cents for cash transactions in general. If you have any questions regarding this situation, contact us at 866-BANTERRA, via chat at Banterra.bank or stop by your local Banterra branch.
Financial Education General News & Events
November 7, 2025 by Banterra Bank
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