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FAREWELL TO THE PENNY

The Penny Is Going Away: Here's What You Need to Know

U.S. Treasury Ends Penny Production: What It Means for You

The U.S. Department of the Treasury has officially ended production of the penny, marking a historic shift in American currency. While the penny remains legal tender, banks—including Community National Bank—can no longer order new pennies from the Federal Reserve. This change will impact retailers, banks, and consumers across the country.
 

Why Is Penny Production Ending?

The decision stems from rising production costs. According to the U.S. Mint’s 2024 Annual Report, it cost 3.69 cents to produce and deliver a single penny, nearly four times its face value. This resulted in an $85 million loss for the U.S. Mint in 2024 alone. 
President Trump directed the Treasury to halt penny production in early 2025.  As inventories deplete, banks are unable to fulfill new penny orders.  And as of today, banks can no longer order new pennies from the Federal Reserve.
 

What This Means for Community National Bank Customers

  • For the businesses we serve, we will no longer be able to do change orders that include pennies.
  • For customers, when making a withdrawal or cashing a check, we will provide you with alternatives to receiving pennies as part of the transaction.
  • Retailers and businesses may begin rounding cash transactions to the nearest nickel as pennies become unavailable.
     

Tips for Consumers: Making the Most of Your Pennies

Even though new pennies are no longer being produced, existing ones are still legal tender. Here are some smart ways to use them:

  1. Cash Them In – bring your coins to your nearest Community National Bank location.
  2. Start Rounding – when paying with cash at retailers, expect totals to be rounded to the nearest five cents.
  3. Consider Digital Payments/Debit Card – card and mobile payments remain exact and unaffected by rounding.  
     

How Retailers Are Adapting

Retailers across the country are already implementing strategies to manage the shortage. Here are some strategies they may implement:

  1. Rounding cash transactions such as rounding to the nearest nickel.
  2. Promote and even incentivize electronic payment options.
     

Community National Bank is committed to supporting our customers through this transition. We’ll continue to monitor updates from the Federal Reserve and Treasury and share guidance as it becomes available. 
 

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