Banks are not planning to stop accepting pennies, and there is no official date when they will

The U.S. Mint still produces pennies, the Federal Reserve still distributes them to banks, and banks still accept them as legal tender. No federal law has been passed to remove the penny from circulation, and no major bank has announced plans to refuse them. The penny remains legal U.S. currency with no expiration date.

That said, pennies move through the banking system more slowly than other coins. Many people throw them away or leave them in jars rather than spend them. Some retailers have experimented with rounding transactions to the nearest nickel, and a few countries have phased out their lowest-value coins. But in the United States, the penny is still here.

Key Takeaways

  • No U.S. bank or federal agency has announced plans to stop accepting pennies.
  • The penny costs more to produce than its face value, which has sparked decades of debate about discontinuing it, but debate is not the same as action.
  • Some retailers round prices to the nearest nickel in cash transactions, but this is voluntary and does not mean pennies are no longer accepted.
  • If you have a large quantity of pennies, banks will still exchange them for other denominations or deposit them into your account.

Why people think the penny might disappear

The penny costs roughly 1.7 to 2.5 cents to manufacture, depending on the year and metal prices. Since 2007, the Mint has lost money on every penny it produces. This economic reality has led economists, business groups, and members of Congress to propose eliminating the penny for decades.

The most serious proposal came in 2017 when a bill called the Coins Act was introduced in Congress. It would have halted penny production and removed pennies from circulation over time. The bill did not pass. Similar proposals have appeared before and after, but none have become law. The debate continues, but debate does not change what banks accept today.

What actually happens to pennies in the banking system

Banks accept pennies at face value and process them like any other coin. You can deposit pennies into your account, exchange them for bills or other coins, or use them to make purchases. The Federal Reserve collects worn-out pennies from banks and removes them from circulation, but this is routine maintenance, not a sign that pennies are being phased out.

Coin shortages have occurred during specific periods—most notably in 2020 during the pandemic—but these were temporary supply issues, not permanent changes to what banks accept. When shortages happen, the Federal Reserve increases production and distribution to meet demand.

Rounding and what it means for pennies

Some retailers, particularly in Canada and parts of Europe, have rounded cash transactions to the nearest five cents after their countries discontinued low-value coins. A few U.S. businesses have experimented with voluntary rounding, but this is not widespread and does not mean pennies are no longer accepted.

Rounding only applies to cash transactions at that specific business. Banks still accept pennies. Online payments, credit cards, and checks are unaffected. If a store rounds your total to the nearest nickel, you can still use pennies to pay, and the store must accept them as legal tender.

What to do if you have a large quantity of pennies

If you have jars or rolls of pennies, your bank will exchange them for other denominations at no charge. You do not need to sort them or roll them yourself—most banks have coin-counting machines that handle this automatically. Some banks may ask you to bring them in rolls or bags, so call ahead to ask about their process.

If your bank does not have a coin counter, you can use a coin-counting kiosk at a grocery store or retail location, though these typically charge a small fee (usually 5 to 10 percent of the total). You can also donate pennies to charity—many organizations accept coin donations.

International examples: what other countries did

Canada discontinued the penny in 2013 after determining that production costs and handling expenses outweighed its usefulness. Australia phased out its one-cent coin in 1992. The European Union stopped producing one-cent coins in several countries, though they remain legal tender.

These decisions took years of planning and public notice. Governments gave people time to spend or exchange their coins before removing them from circulation. The U.S. has not taken this path, and there is no indication it will in the near future.

Why the penny is still produced despite the cost

The penny persists partly because of tradition and partly because eliminating it requires an act of Congress. Some people argue that removing the penny would hurt low-income people who rely on cash transactions. Others point out that the cost of production is a small fraction of the Mint's overall budget. Retailers have also expressed concern about the logistics of rounding prices.

Political will to eliminate the penny has never been strong enough to overcome these objections. As long as Congress does not pass a law to discontinue it, the Mint will keep producing pennies, and banks will keep accepting them.

Frequently Asked Questions

Can I still deposit pennies at my bank?

Yes. Banks accept pennies as legal tender and will deposit them into your account or exchange them for other denominations. You may need to bring them in rolls or bags, depending on your bank's policy. Call your bank to ask about their coin deposit process.

What if a store refuses to take my pennies?

Pennies are legal U.S. currency, and stores are required to accept them. If a store refuses, you can report it to your state's attorney general or consumer protection office. In practice, most refusals happen because a register is full or a transaction is nearly complete, not because the store has a policy against pennies.

Will the penny ever be discontinued?

It is possible but not imminent. Congress would need to pass a law to discontinue penny production and remove pennies from circulation. This has been proposed multiple times but has not happened. Any discontinuation would likely include a long transition period so people could exchange their pennies.

Are old pennies worth more than face value?

Most circulated pennies are worth one cent. Rare dates, mint marks, or coins in excellent condition may be worth more to collectors, but you would need to have them evaluated by a coin dealer. Regular pennies from recent years have no collector value.

Why does the penny cost more to make than it is worth?

The penny is made from zinc coated with copper, and the cost of materials, labor, and equipment to produce it exceeds one cent. This has been true since 2007. Despite this, the Mint continues production because Congress has not authorized discontinuation, and some argue the penny remains useful for commerce and pricing.