The U.S. Department of Treasury Has Stopped the Production of Pennies
Here’s what this means for you
While no new pennies will be minted, all existing pennies remain legal tender and will continue to circulate normally.
What’s changing — and what’s not
- The Federal Reserve has received the last of the pennies from the U.S. Department of Treasury. The Reserve’s disbursement of pennies to banks will end when this inventory is depleted.
- Pennies are not being removed from circulation. There are no current plans to demonetize or discontinue existing pennies.
What to expect at KeyBank
The national penny supply will begin to decline and as a result, our penny inventories will vary by branch location and day. We will experience limited availability of pennies as our supplies become depleted.
To ensure fairness and reliability for all our clients:
- KeyBank will continue to accept pennies. All pennies already in circulation will continue to be accepted for payments, deposits, and cash transactions.
- We’re actively monitoring and managing our coin supply to keep distribution as balanced as possible across our branches.
- Branch and client coin orders will be adjusted as needed to reflect changing inventory levels. If our inventory is depleted, we will be unable to fulfill orders.
- When we run out of pennies, branches will round cash payouts up to the nearest five cents. However, this practice may vary by location and day. Additionally, future legislation or guidance may alter how transactions are handled in the absence of pennies.
Frequently Asked Questions
Currently, the penny is not being discontinued or demonetized. However, the U.S. Department of Treasury has stopped making new pennies and the Federal Reserve will stop distributing pennies to banks when their inventory runs out.
Although penny production has stopped, pennies will remain legal tender for the foreseeable future.
Yes. You can use pennies for payments, deposits, and cash transactions.
At KeyBank, we’re supporting our clients through this change with:
- Full acceptance of pennies: You can still deposit, withdraw (if we have pennies available), and spend pennies as you always have.
- Digital payment options: We encourage you to simplify transactions by using digital tools when you can, such as electronic payments, direct or mobile app deposits, or card-based payments.
- When our inventory of pennies is depleted, all cash payouts made by branches will be rounded up to the nearest five cents.
What if things change?
Removing a currency from circulation is rare, and the full effects of ending penny production are still unfolding. We’ll continue to provide updates as new information becomes available.
