Making Cents of Change – Penny Production Ends

As your local community bank, we believe it’s important to keep you informed about changes that affect everyday money matters — and one of those changes is on the horizon for America’s smallest coin.

The U.S. Mint announced plans to phase out production of the penny in May 2025, and on November 12, it produced its last penny. While existing pennies remain legal tender, no new ones will be made. The decision comes after years of rising production costs and recognition that cash use continues to decline in an increasingly digital economy.

What This Means for You

For most, this change will happen gradually. You’ll still be able to use pennies for purchases and deposits, and banks and retailers will continue to accept them. But over time, fewer pennies will circulate, which could lead to changes in how businesses handle cash transactions.

• Cash transactions may be rounded: When paying with cash, some businesses may round totals up or down to the nearest five cents.
• Exact change will matter more: Pennies may become harder to find, so holding on to change or rolling it up for deposit will help keep coins in use locally.
• Loose change still counts: Those jars of pennies at home? They still have value and bringing them to the bank is an easy way to turn them into dollars that keep working in our community.
• Electronic payments are not affected: Debit card, credit card, and mobile wallet transactions will continue to process to the exact cent. So, if you already pay digitally, you’ll notice no change at all.
• Enjoy rewards when you use your card.  When you choose to pay with your MBT Everyday Points debit or credit card, you’ll continue to earn points through our Everyday Points Rewards Program that you can redeem for cash back – a simple way to make your spending go further!*  And if you’re ready to go contactless, we’ll be glad to help you load your card into a mobile wallet for quick, secure payments right from your phone.

What This Means for Local Businesses

Businesses that rely on cash should review the following considerations:

• Plan for fewer pennies in circulation. As banks will no longer be able to order new pennies from the Federal Reserve, it may be wise to have more nickels and dimes on hand.
• Review your rounding policy. Many retailers in other countries have already adopted simple rounding systems that ensure fairness to both customers and businesses.
• Communicate with your customers. Clear signage and consistent policies can prevent confusion and help maintain the friendly, personal experience people value from their local stores and service providers.
• Let’s talk about merchant services. If you’re interested in expanding your digital payment options, contact us to discuss our merchant services. We may be able to help your business lower costs, simplify payment processing, and improve efficiency – all while keeping your transactions secure and convenient for your customers.

A Small Coin, A Big Tradition

The penny has been part of American life for over 200 years. For many of us, it’s a reminder of simpler times — a child’s first coin collection, a tip jar, or a lucky find on the sidewalk. Even as production winds down, the penny’s place in our culture will remain.

We’re Here to Help

At United Community Bank, we’re here to help make financial transitions easier - whether that’s adjusting to changes like this or managing your daily banking needs.

We continue to provide coin and cash services as usual and if you have questions about how this change might affect your business or everyday banking, please stop by or give us a call.

Because when change happens - big or small - your neighbors, your friends, your bankers are here to help!

* An active Everyday Points debit or credit card is required to earn points. E-statement use is required to redeem points. Points are earned on qualifying signature-based or “credit” transactions and are dependent upon merchant discretion. Timeframe for points to be credited to point bank may vary. Rewards points may be reported to the IRS as interest income. For more information regarding the Everyday Points Rewards Program, please visit our Everyday Points webpage or stop by your nearest MBT location.