The U.S. Mint has officially stopped producing pennies, and Minnesota Lakes Bank wants to ensure our customers understand what this change means and how it may impact cash transactions.
Why Pennies Are Being Phased Out:
- Rising Costs: It now costs more to make a penny than the coin is worth, making production increasingly unsustainable.
- Reduced Use: Pennies are rarely used in daily transactions and often accumulate in jars or drawers instead of circulating.
- Efficiency & Sustainability: Ending penny production helps conserve resources, reduce waste, and streamline coin production.
What This Means for You:
With pennies being phased out, cash transactions may be rounded to the nearest five cents. While this only affects cash purchases, digital payments and checks are unaffected. We encourage our customers to be aware of this change and plan accordingly.
Pennies Will Still Be in Circulation:
Although the U.S. Mint has stopped producing new pennies, existing pennies will remain in circulation for years to come. However, as businesses and consumers gradually run through their existing supply, access to pennies may become limited. This means some businesses may find it harder to keep enough change on hand, and customers may notice fewer pennies available in cash transactions. At Minnesota Lakes Bank, we recommend keeping an eye on your coin inventory and planning ahead as availability slowly decreases.