Goodbye, Penny: What Changes (and What Doesn’t)

If you’ve noticed fewer pennies in your change recently, you’re not imagining it - the U.S. Mint has officially stopped producing pennies and banks and credit unions can no longer order them from the Federal Reserve. This historic shift marks the end of over two centuries of penny production and is part of a broader effort to modernize currency and reduce costs. 

Why Are Pennies Being Phased Out?

There are two big reasons behind this change:

• Cost vs. Value: It now costs more to make a penny than the coin is actually worth. In fact, production costs have been nearly four cents for every one-cent coin for several years.
• Less Use in Everyday Life: With fewer people using cash for daily purchases and more relying on cards or digital payments, pennies have become less useful in everyday transactions. 

While the penny is no longer being minted, it remains legal tender and you can still use or deposit the pennies you already have. 

How This Affects Cash Transactions

One of the biggest questions we’ve been hearing from members is: “If I can’t get pennies back as change, what happens when I cash a check or make a purchase?”

Here’s What You Can Expect

Pennies Will Slowly Become Scarcer

• Banks and credit unions can’t order new pennies, so the supply will naturally dwindle. 

• You may still see pennies in your change from time to time - but it will become less common as inventories decline. 

• Genisys Credit Union is not currently seeing a shortage and has shipped surplus bags of pennies to help keep the system going. To manage inventory, we have stopped the bulk sale of pennies to members. At this time we are not rounding for deposits or for change.  Once we do get to a shortage situation we will be depositing the pennies into the accounts not rounding

Cash Rounding May Come Into Play (Cash Only)

Many retailers are already using or preparing to use a cash-rounding system to the nearest five cents - but only for cash transactions. For example:

• $10.02 or $10.03 may be rounded down to $10.00 or up to $10.05

• $10.07 or $10.08 may be rounded to $10.05 or $10.10 depending on the rounding rules their system follows.

Note: This rounding only impacts cash purchases. If you pay with a debit card, credit card, check, or mobile payment, your total will still be exact to the cent. 

Exact Change Is Still Possible. Just Different

When you visit some financial institutions to cash a check or make a withdrawal:

• You won’t receive penny rolls or expect pennies in your cash back once supplies run out. 

• If your total includes pennies, you may be asked how you’d like to handle the rounding, or you can choose non-cash options to receive an exact amount.

What You Can Do Now

Even though pennies are disappearing from circulation, there are simple ways to navigate this transition:

• Use digital and card payments when you can. You’ll never lose exact cents on a card purchase.

• Save or deposit your pennies now. They’re still legal tender and can be used, deposited, or exchanged at participating institutions. 

• Get comfortable with rounding. Think of it like decimal rounding in math - sometimes you’ll round up, other times down. Over time, it will feel familiar.

• Plan for checks and cash payouts. If you want exact amounts, ask about rounding options or consider depositing and using electronic transfers for exact cent totals.

The Bigger Picture

This change isn’t unique to the U.S., countries like Canada, Australia, and New Zealand have all eliminated their one-cent coins with minimal disruption by using similar rounding rules. 

While it may feel strange at first, most consumers will barely notice the change, especially since digital payments continue to grow, and pennies have become a less practical part of everyday commerce.

If you have additional questions or want to know how the penny discontinuation affects specific transactions at the credit union, please stop by any of our convenient branch locations or call 248-322-9800 extension 5 to speak with a team member today.

 

© Genisys Credit Union and www.genisyscu.org, 2026. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited.  Excerpts and links may be used, provided that full and clear credit is given to Genisys Credit Union and www.genisyscu.org with appropriate and specific direction to the original content.

 

Sources:

https://www.mfcu.net/farewellpenny

https://www.usmint.gov

https://www.frbservices.org

https://www.federalreserve.gov

https://www.bankofcanada.ca

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