header third level landing

Home / The Last Chapter for the Penny


The Last Chapter for the Penny


What’s Happening

The humble one-cent coin is entering a new era. The United States Mint has halted production of new pennies, with existing coins remaining legal tender but no more being made. As a result, banks and businesses are already feeling the effects of dwindling penny supply and are starting to adjust their cash-handling practices.


Why this is happening

  • Production cost exceeds value: Producing a penny costs nearly four cents.
  • Circulation is slowing: Many pennies remain stored instead of actively circulating.
  • Modern payment trends: As digital payments rise, reliance on low-value coins continues to decline.


What it means for you

For Consumers

  • Your bank still accepts pennies—but supply may gradually decrease.
  • You may begin to see cash transactions rounded to the nearest five cents.
  • Pennies remain legal tender, and there is no deadline to use or deposit them.

For Businesses & Banks

  • Cash-handling systems may need adjustments.
  • Penny orders may become limited or discontinued.
  • Clear communication around rounding practices is essential.

Check Cashing Update

As part of these changes, Woodsboro Bank will begin rounding the cash received when cashing checks up or down to the nearest nickel.

  • This rounding applies only when receiving cash back from a cashed check.
  • The amount of the check itself is not changed.
  • Customers can choose to deposit a check to receive the exact amount without rounding.

This approach helps reduce reliance on pennies while keeping transactions efficient and consistent for our clients.


What you can do

  • For individuals: Bring those pennies out of the jar—deposit or spend them now while they’re still freely handled.
  • For businesses: Audit your cash systems, update your policies on change and rounding, and train staff about the transition.
  • For financial professionals: Monitor coin inventories, coordinate with the Federal Reserve’s coin-distribution network, and proactively communicate with clients.


Looking ahead

The end of penny production doesn’t mean pennies vanish overnight. They’ll remain in circulation until gradually phased out through loss, wear, and removal from active use. Eventually, the penny’s role may be fully replaced in everyday cash interactions.

The question evolves from “Will the penny survive?” to “How will we live without it?”—and how that transition affects pricing, cash habits, coin logistics and public sentiment.

Woodsboro Bank is committed to helping clients navigate this transition with clear communication and practical solutions.


have questions? 

Contact your local branch or contact us to learn more.