Federal Reserve ends the US penny, what you need to know

After being part of American currency for over 230 years, the US Treasury has announced the end of the US penny in 2026.

Economically, pennies no longer make sense. Every penny costs 3.7 cents to produce, and the US Mint incurred a loss of over $85 million in 2024 alone due to the production of 3.2 billion pennies.

Without the trusty penny going forward, cash transactions will need to be rounded up or down a few cents. Credit purchases will not be rounded and will remain exact.

"A lot of your businesses in town have already started doing the round up," Central Bank Senior Vice President/Sales Manager Lynn Welton said. "So they're already getting used to not coming to the bank and getting pennies from the change order. Usually, that's who gets the pennies, your business account holders, not so much as somebody off the street."

The transition away from pennies should be easy, as they have little value already and businesses have been preparing for the change in making change.

"It's posted on their doors and on signs in the stores," Welton said. "But I believe anything over three cents they will round up to five cents, and if it's lower than three, then it would round down. You still can spend your pennies anywhere."

Central Bank Vice President and Retail Banking Manager Casey Martin said she has not seen any disruption since the Treasury dropped the penny.

The last coin featuring Abraham Lincoln was produced on Nov. 12.

"It doesn't really affect our consumer customers," Martin said. "But here at the main bank, we have a few consumers who used to like to come in and buy a box of pennies or a couple of boxes of pennies, and we've had to limit them."

Pennies still may hold so numismatic value, and collectors are encouraged to look for historically significant pennies such as the 1909-S V.D.B., the 1943 bronze cent and the 1955 Doubled Die Obverse, which are likely to see increased interest and value due to renewed public interest in the penny.

"We've been advised to actually hold them for our business customers and for the bank to be able to process," Martin said. "But we're lucky here, we have a coin sorter, and so we are seeing pennies still coming in."

With many people paying exclusively with credit cards, hard currency is being squeezed out of the monetary marketplace, and the penny might not be to only casualty.

"It does cost more to make pennies than what they're worth," Welton said. "So I see why we are slowing the pennies down and not offering them as much to everyone. But the next thing will be your nickels."

While no official announcements have been made concerning the nickel, it may be the next coin to face review, and the treasury could eventually eliminate the Jefferson-faced denomination as well.

At Central Bank, shipments of currency from the Federal Reserve no longer include pennies.

"We get our money from Kansas City," Martin said. "I know for sure Kansas City and St. Louis are no longer selling pennies to banks from the Federal Reserve. I assume they're out. I did have somebody tell me that when they saw a courier one day, there was a ton of pennies and in the back, so banks are turning them."

Banks are still accepting pennies and you can prepare for the eventual disappearance of the cent by depositing or spending your pennies while they're still in circulation.

Chris Howell can be reached at 660-530-0146.