The Penny is Retiring: What You Need to Know
The penny’s retiring—see what this change means for your wallet.
Pennies have been a part of daily life for over 200 years, but that’s changing. Starting in 2026, the U.S. will stop producing new pennies. Here’s what this means and how you can prepare.
Why the Penny is Being Phased Out
- Production Costs: Making a penny now costs more than its actual value.
- Less Use: Many pennies aren’t spent—they often sit in jars, piggy banks, or get discarded.
The goal is to simplify the money system and make cash handling more efficient.
How This Impacts You
- Any pennies you already have are still valid money. You can spend, save, or donate them.
- Cash totals may be rounded to the nearest five cents. For example, $6.02 might round down to $6.00, while $6.03 could round up to $6.05. Rounding rules vary by store or location. Keep an eye out for updates on legislation or retailer rules that may change how cash is handled.
- Payments made with cards or digital options are not affected.
How Banks are Helping
- Keeping track of coin supplies while pennies are still in circulation.
- Working with the Federal Reserve to manage coin availability.
- Offering guidance and support for customers during this transition.
Tips to Prepare
- Spend or deposit pennies while they’re still widely accepted.
- Use digital or card payments whenever possible.
- Be patient as businesses adjust to rounding policies.
- Check updates from your bank or local merchants for guidance.
What to Do With Your Pennies
- Spend them at stores that still accept them.
- Deposit them at your local Jefferson Bank location—we have coin-counting machines, no rolling needed.
- Look for older coins—pre-1982 pennies may have copper value above face value.
- Keep a few as a keepsake to remember their history.
The transition will be gradual, so there’s no need to rush. Your pennies remain valid, electronic payments are unaffected, and your bank is ready to help you adjust to the change.
