Money is a part of our everyday life. We use it to buy food, clothes, and other things we need. Coins, like pennies, nickels, dimes, and quarters, have been around for hundreds of years. But changes are coming—starting in 2026, the U.S. penny will be retired. That means the government will stop making new pennies.
You might be wondering: why retire a coin that’s been around for more than 200 years? And how will this affect everyday life? Let’s explore.
Why Are Pennies Being Retired?
- Cost: It costs more to make a penny than its value. While a penny is worth one cent, producing it costs more than one cent because of materials and labor.
- Usage: Fewer people use pennies today, and many end up in jars, piggy banks, or even thrown away instead of being spent.
By retiring the penny, the U.S. government hopes to make the money system simpler and more efficient.
What This Means for You
- Pennies you already have are still valid money. You can spend, save, or donate them.
- Cash transactions may be rounded. A proposed bill in Congress suggests rounding totals to the nearest five cents. For example, $1.02 could round down to $1.00, and $1.03 could round up to $1.05. Rounding may vary by retailer and local rules. Please stay tuned on any future legislation that may impact cash rounding or any other local store policies set by retailers
- Card and digital payments are unaffected.
What Your Bank is Doing
We understand that the penny retirement may raise questions, so here’s how we’re helping:
- Monitoring coin supply to make pennies available while possible.
- Coordinating with the Federal Reserve and Treasury to manage coin distribution.
- Supporting customers like you with guidance and operational adjustments.
How You Can Prepare
- Deposit or spend your pennies while they are still in circulation.
- Use cards or digital payments whenever possible.
- Be patient with stores as they adapt to new cash policies.
- Stay informed through notices from your bank or local merchants.
Options for Your Pennies
- Spend them while stores still accept them.
- Deposit them at the bank. Most Central Bank branches have coin-counting machines and accept loose coins—rolling is not required.
- Check for valuable pennies. Coins made before 1982 are mostly copper and may be worth more than face value.
- Hold onto a few pennies as a reminder of the penny’s long history!
This change is gradual, so there’s no need to rush or worry—pennies won’t disappear overnight. The 2026 penny retirement is an important step in U.S. currency, but your existing pennies remain valid, and electronic payments are unaffected. Your bank is here to help you manage coins during the transition. By staying informed, using coins wisely, and taking advantage of banking services, you can navigate this change smoothly and be ready for the future of cash.
