What Happened to the Penny? What Consumers and Businesses Need to Know

For more than 200 years, the penny has been a familiar part of American life. Whether collecting spare change in a jar or searching for exact change at checkout, most of us have handled plenty of pennies over the years.

Now, the way pennies enter circulation is changing.

The U.S. Treasury Department has officially stopped producing pennies, and the Federal Reserve is no longer distributing new pennies to banks. While pennies remain legal tender and can still be used for purchases, they'll gradually become less common in everyday circulation. If you're wondering what this means for your wallet, your business, or your bank account, here's what to expect.

For most people, the impact will be minimal. Pennies you already have can still be spent, saved, or deposited, and electronic payments will continue to be processed to the exact cent. As pennies become less common, however, some businesses may choose to round cash transactions to the nearest five cents.

The good news? This change won't affect your checking or savings accounts. Your balances, deposits, and transactions will continue as they do today.

Businesses that regularly handle cash may notice some operational changes as penny availability declines. Because the Federal Reserve is no longer supplying pennies, Community Bank is no longer able to order new pennies for customers due to changes in Federal Reserve distribution. As a result, some merchants may update cash-handling procedures or implement rounding practices for cash purchases.

At the same time, fewer pennies could mean simpler cash management, faster transactions, and less time spent counting and handling coins.

Absolutely. Community Bank will continue accepting rolled pennies for deposit or exchange at branch locations. If you've been saving loose change over the years, now may be the perfect time to bring it in.

Can I still use pennies?
Yes. Pennies remain legal tender and can still be used to make purchases.

Will my checking or savings account be affected?
No. This change only impacts the circulation of physical pennies and does not affect
deposit accounts.

Can I deposit pennies at Community Bank?
Yes. Community Bank continues to accept rolled penny deposits and exchanges at branch locations.

While changes to everyday currency may raise questions, Community Bank is committed to helping you understand what they mean and how they may affect you. Stop by your local Community Bank branch or contact our team to learn more about what the end of penny production means for you or your business. We're here to help make the transition as simple as possible.