U.S. Treasury to Cease Production of Pennies Impacting Local Banks
November 5, 2025
The United States Treasury will be ending production of the penny, which will impact banks across the country. Read on to see how this may impact you.
Why is the U.S. penny no longer being minted?
The U.S. Mint has stopped producing most zinc pennies to reduce production costs and address the rising expenses associated with minting.
When did the U.S. stop minting the penny?
The U.S. Mint has gradually reduced penny production over recent years, and in recent times, has announced it no longer plans to produce new pennies for circulation.
Why is the penny still in use if it's no longer being minted?
The penny remains legal tender and is still accepted for transactions, but no new pennies are being produced, and older pennies are gradually being phased out in circulation.
Why was the decision made to stop minting the penny?
The decision was driven by cost.
How much does it cost to produce pennies?
In 2024, it cost the Mint approximately 3.7 cents to produce a penny.
Is there a penny shortage? Why are retailers saying they don’t have enough?
It’s not a coin shortage in the traditional sense---there are plenty of pennies out there. But circulation is slowing down. May people stash pennies in jars or drawers, and without new ones being minted, banks and retailers are relying on recycled coins.
Are pennies still available in banks or stores?
Yes, existing pennies are still available in banks, and stores will continue to accept them. However, new pennies will not be issued or circulated as frequently.
Will the penny still be accepted as payment?
Yes, the penny is still legal tender and will continue to be accepted for payments, but transactions might involve rounding to the nearest five cents in some cases.
What happens if my bank or store runs out of pennies?
In areas experiencing penny shortages, banks and retailers may temporarily round cash transactions to the nearest five cents. This is similar to what countries like Canada and Australia have done after phasing out their lowest denomination coins. Electronic payments remain unaffected, and banks will clearly communicate any changes to customers.
Can I still use my pennies? Should I do anything with them?
Absolutely. Pennies are still legal tender and can be used for purchases or deposited at your bank. The banking industry encourages consumers to recirculate coins—check your home, car or coin jars and bring them to banks, retailers or coin kiosks to help ease the slowdown.
Will this affect my banking experience?
Possibly, banks are committed to minimizing disruption. You may notice rounding in cash transactions or signage encouraging electronic payments. Banks will continue to accept and process pennies as long as they remain in circulation and will keep customers informed of any changes.
What’s next? Will the penny be eliminated completely?
That decision lies with Congress and the President, as the Constitution gives Congress the authority to coin money. The banking industry is prepared to support whatever policy is enacted and will ensure a smooth transition if the penny is officially phased out.
Call 515-288-0111 or stop by any one of our 5 convenient locations to speak to a banker today if you have additional questions about how the ceasing of penny production impacts you.