In early 2026, the United States Mint will stop the production of pennies, and the Federal Reserve will no longer supply banks with them once current inventories are depleted.

Why phase out the penny?

While the process of ending penny production is being instituted now, the idea of parting ways with the penny has been tossed around for years. It costs close to four cents to produce one penny. The end of its production supports a goal of reducing unnecessary government spending.

Additionally, this change isn’t unexpected, as the use of debit, credit, and other cashless payment methods has steadily grown over the years. We anticipate electronic payment methods to continue to become the norm as retailers, restaurants, and other merchants begin to no longer accept pennies.

How this affects businesses:

Merchants will need to adopt rounding policies that are consistent with state guidance and best practices. Businesses may want to post a notice of this change in their facilities to keep customers informed. Cash transactions will be rounded to the nearest nickel when pennies are not available. Electronic payments will remain unaffected.

For example, a cash purchase of $10.02 at a restaurant, retailer, etc. would be rounded to $10.00. A cash purchase of $10.03 would be rounded to $10.05.

What this means for customers:

• Pennies will still be accepted for deposits and as legal tender.
• Pennies may continue to be recirculated while supplies last.
• Once inventory is gone, pennies will no longer be available for withdrawals or change.
• Cash transactions will be rounded to the nearest nickel when pennies are not available.
• Electronic payments will remain unaffected. Payments made with debit or credit cards will not be rounded.

How Home Bank will handle this transition:

This is a nationwide transition as pennies are phased out of circulation. Once this transition begins, we will continue to accept pennies and recirculate the usable ones as our supply allows. Once our inventory is gone, we will round cash transactions to the nearest nickel. Customers will be notified when pennies are no longer available at our branches.

We appreciate your understanding and cooperation. Please contact a member of our staff if you have any questions.