Phasing out the Penny: A Change to Your Change

With the national phaseout of new penny production now underway, many people have questions about what this means for their everyday banking. Here is a simple breakdown of what you need to know.

Why are Pennies Being Phased Out?

According to the American Bankers Association, each penny costs nearly four cents to produce and distribute. While four cents sounds like a small amount, over time that adds up and is costing taxpayers millions of dollars. With production paused, the supply of pennies will naturally decrease over time, which is why you may start to notice small changes in their availability.

What Does the Phaseout Mean for Everyday Banking?  

First, all pennies currently in circulation are still legal tender and can continue to be used in daily transactions. You can still spend them and bring them to the bank just like you always have.

As the supply of pennies slowly decreases, you may notice situations where coin requests for pennies cannot be fully filled. Our team will always do their best to meet your needs, but there may be times when the number of pennies available is limited.

Navigating the Phaseout

If you have pennies at home sitting in your piggybank, now is a great time to bring them in. You can bring rolled pennies to any branch or stop by our branches that offer a coin counter machine if that’s easier for you. Coin counter machines are available at Greenfield Main Office, Amherst branch, Shelburne Falls branch, and Turners Falls branch.

If you visit a branch to cash a check and the amount includes change, we can deposit the extra change directly into your account. It is an easy way to receive your cash, even when there is a limited amount of pennies available. 

Whenever possible, we also encourage our customers to use digital payment methods. Options like debit cards, electronic transfers, and digital wallets help reduce the reliance on coins altogether and offer a quicker, more convenient way to manage everyday spending.

Tips for Retailers

If you run a business, the penny phaseout may affect your daily operations. Here are a few simple ways to stay prepared:

• Keep an eye on your coin supply since there may be times when penny orders are only partially filled.
• Encourage customers to use digital payments whenever possible to reduce the need for coins.
• Offer to round totals to the nearest nickel when appropriate and clearly explain the rounding policy to customers.
• Remind customers that they can deposit their pennies to our branches to help keep coins in circulation.

We will continue to keep customers informed as this phaseout moves forward and if you have any questions, our team is always here to help.