The Penny’s Retirement: What You Need to Know

pile of pennies
penny from 1939

Penny Production is Ending

After more than 200 years as a currency staple, the U.S. Treasury plans to end production of the penny in 2026. With each penny costing nearly four cents to produce, minting pennies is no longer economically efficient. While existing pennies will continue to be accepted as legal tender, once the Common Cents Act is approved and goes into effect, they will become less common as banks and businesses phase them out.

For more information on how and why this national change is happening, visit the Federal Reserve’s official FAQs on the penny transition.

What This Means for You

Using Remaining Pennies
Pennies will continue to circulate, and you can spend, deposit, donate, or save them.

Exact Electronic Payments
Debit cards, digital payments and apps like Zelle® will continue to be charged to the exact amount.

Rounded Cash Transactions
Totals for cash transactions may be rounded to the nearest nickel ($.05) as the supply of pennies shrinks.

For Business Owners

Businesses that handle cash will experience the penny’s retirement sooner.
Here’s how to be prepared as the supply decreases.

Promote Digital Payments
Encourage customers to use credit or debit cards or mobile payment apps such as Zelle®.

Plan for Rounding
Decide how your business will handle rounding when customers pay with cash. Review your register and POS systems to set up rounding features for cash transactions.

Communicate Clearly
Let customers know how rounding will work, and train staff to answer questions.

Consult with Professionals
Meet with a WaterStone banker if you have questions.

Frequently asked questions

Yes. Pennies will remain legal tender and can be used to make purchases.

Yes. We’ll continue accepting pennies while supplies and systems allow. We’ll provide updated information if this changes.

Requests may be fulfilled as supplies allow, but orders will eventually be unavailable once pennies are no longer produced.

Spend, deposit, or donate them while they’re still in circulation.