Penny Retirement

The U.S. Penny is Being Retired – What it Means for You

The U.S Treasury has decided to end penny production as part of an effort to reduce unnecessary government spending, noting that each penny costs nearly 4 cents to produce and distribute.

Pennies will remain legal tender; however, their availability will gradually decline over time. That means you may notice fewer pennies in your change jar or at the register, and that cash transactions will be handled differently.

What Drake Bank is Doing

As of December 12, 2025, we will continue to update our practices and procedures as inventory changes.

  • We continue to accept penny deposits from clients.
  • We will continue to supply penny orders for business clients while supplies last. We have also started placing restrictions on the amount of pennies that can be ordered per client.
  • Once exact changes cannot be provided, we will round cash transactions to the nearest nickel.

What To Do

Individuals

As the supply of pennies declines, here are things you can do, consider, and remember.

  • Deposit or spend your pennies to help with circulation
  • Use digital payments (i.e., debit card, credit card, and mobile payments) when convenient, as they are not affected by rounding
  • Be aware of rounding rules when paying cash – this is set by the merchant or business

Businesses

If your business accepts cash payments, prepare early for how you will continue handling them once pennies are no longer available.

  • Review your pricing and point-of-sale systems to determine how you will round purchases.
  • Encourage customers using cash to use exact change, as the supply of pennies will continue to decrease.

Additional Resources

CONTACT OUR TEAM

(651) 224-5000
customerservice@drake-bank.com

AMERICAN BANKERS ASSOCIATION

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THE FEDERAL RESERVE

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