For most people, the penny is a U.S. staple. It’s always been around, albeit usually tucked in couch cushions, stashed in piggy banks, or lingering at the bottom of a purse. So, when the United States announced it would end production of the penny, it naturally raised a few eyebrows. When something familiar disappears, even something as small as a one-cent coin, it’s normal to wonder what comes next.
If you’ve been confused or curious about how this change will affect your everyday life or your credit union accounts, we’re here to help. Fortunately, the transition will be simpler than many people expect – the greatest challenge will be overcoming the nostalgia attached to the penny.
Why were Pennies Discontinued?
The U.S. Mint officially began minting pennies in 1793. With over two centuries of circulation, the decision to end penny production wasn’t easy. The U.S. Mint, the U.S. Treasury, and the Federal Reserve spent years researching the potential economic impacts and weighed them against the cost of production. Ultimately, it was decided to stop production and phase out the one-cent coin.
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When Production Ended:
The U.S. Mint struck the final penny for circulation at its Philadelphia facility on November 12, 2025 – officially closing a 232-year chapter in American history.
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Why the Change was Made:
At the end of the 2024 fiscal year, pennies accounted for 57% of the U.S. Mint’s total coin production - with around 3.2 billion pennies being produced each year. Due to rising costs, the government is expected to save more than $56 million annually by discontinuing the penny.
With digital payments becoming the norm and an estimated 114+ billion pennies currently in circulation, the one-cent coin was deemed to no longer play a critical role in modern-day transactions.
How Will Ending Production Impact You?
For the majority of Americans, life will continue as normal. You’ll still find pennies hidden under couch cushions, and your child’s piggy bank or coin jar will be filled to the brim with them. You’ll even be able to continue using them as cash payments.
To ease any potential worry, let’s break down the main changes:
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Pennies are Still Legal Tender:
Every penny that is currently in circulation will remain legal tender. With an estimated 114+ billion pennies in circulation, and an average lifespan of 30 years per penny, it’s safe to say they will be around for a long time.
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Prices Won’t Suddenly Change:
Retailers can still price items ending with the infamous .99, such as $5.99 or $99.99. Eventually, businesses will begin a rounding process, but for now, cash payments will remain pretty much the same as they’ve always been.
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Digital Payments are Unaffected:
Payments made with a debit or credit card, P2P payment app (Cash App, Venmo, etc.), electronic transfer, or even a paper check, will not be affected. The only payments that will eventually be impacted are those made with cash.
How is the Financial Industry Adapting?
Credit unions and banks have been preparing for this transition for some time, and most changes are taking place behind the scenes.
What You Can Expect as a Member:
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You can continue using pennies as usual.
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Small deposits and coin jars are still accepted at most financial institutions. However, for larger coin deposits, many financial institutions require pennies to be rolled.
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Online banking, account balances, and interest earnings will all remain completely unchanged.
Most of the adjustments involve teller operations and coin ordering processes – internal processes that will not impact your day-to-day banking.
What You Can Expect as a Business Owner:
Members with businesses and who work with a steady flow of cash may see the biggest adjustments over time, including:
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Ordering penny rolls will eventually be phased out.
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Cash drawers will shift to the new rounding strategy once pennies become scarce.
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POS systems may need updates as rounding becomes commonplace.
What Happens at the Checkout Counter?
Today, most transactions are completed digitally. The only changes that businesses or consumers will have are strictly limited to cash-only payments. As pennies slowly fall out of circulation, a new rounding strategy will be implemented.
How Rounding Works:
When cashiers no longer have enough pennies to make exact change, totals are expected to be rounded to the nearest nickel. Rounding will apply only to the final amount, including sales tax.
The National Council of State Legislators (NCSL) has provided the following guidance that many states are expected to follow:
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Round down if the final digit ends in 1, 2, 6, or 7.
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Round up if the final digit ends in 3, 4, 8, or 9.
This format creates a balanced system where costs round in your favor as often as they round up. While the NCSL guidance is popular among states, each state and local government can create its own system based on its existing laws.
Remember: Rounding only applies to cash payments. Digital payments, such as those made with debit and credit cards, will be unaffected.
What Should You Do Now?
With an estimated 114+ billion pennies in circulation and each penny having an average lifespan of 30 years, the short answer is that you don’t need to do anything.
Pennies aren’t going to disappear overnight, and rounding for cash-only payments will happen gradually over the years to come. The best move to make in the short term is to become more accustomed to utilizing digital payment options through the credit union and other providers, including:
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Debit Cards
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Credit Cards
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Digital Wallets
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P2P Payments
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Online Bill Pay
Each of these tools will keep every transaction exact down to the last cent, avoiding potential rounding.
We’re Here to Help!
Letting go of a coin with more than two centuries of history can feel strange, but the practical impact is far smaller than most people expected. Your money still holds the same value, your account balances will be unchanged, and prices won’t suddenly jump higher. And the pennies already in your pocket will remain useful for decades still to come.
If you have questions about the discontinuation of the penny, we’re happy to help. Please stop by our office or call 800-410-0501 to speak with a team member today.
External Resources:
• U.S. Mint: https://www.usmint.gov/news/media-kit/penny
• U.S. Treasury: https://home.treasury.gov/news/featured-stories/penny-production-cessation-faqs