Pennies

Understanding the Penny Phase-Out: What It Means for You

 

Overview

The U.S. Treasury has stopped producing new pennies, and while billions of pennies remain in circulation, penny availability is beginning to slow down. Great Southern Bank is monitoring the situation closely and is prepared to ensure a smooth transition for our customers.

 

How Great Southern Bank Is Responding

We are committed to minimizing disruption and ensuring fair treatment of all customers during this transition.

Continuing Normal Operations: We will provide pennies for as long as possible and continue accepting penny deposits.

Fair Rounding When Necessary: If penny availability becomes limited and we cannot provide exact change when cashing checks, we'll round up to the nearest nickel or dime in your favor.

  • Example: Cash a check for $10.02 → Receive $10.05 in cash

Exact Deposit Crediting: All deposits are credited for the exact amount—no rounding.

 

Coin Services:

  • Coin counting machines will continue accepting pennies
  • Penny orders will be fulfilled based on typical customer needs while supplies last
  • Large coin orders remain subject to existing restrictions
 

What You Can Do

Help Keep Pennies Circulating: If you have pennies saved at home, deposit them at any Great Southern Bank location, use our coin counting machines, or exchange them for bills. Your penny deposits help maintain circulation and support the broader community.

Consider Electronic Payments: Electronic payments—including credit cards, debit cards, ACH transfers, and online payments—are unaffected by penny availability and continue to process at exact amounts with no rounding.

 

Frequently Asked Questions

Understanding the Change

Q: Is the government really stopping penny production?

A: Yes. In February 2025, President Trump directed the U.S. Treasury to stop producing new pennies as part of an effort to reduce government spending. According to the government, it costs nearly 4 cents to produce and distribute each penny. The U.S. Mint has ceased production.

Q: Are pennies still legal to use?

A: Absolutely. Pennies remain legal tender, and you can continue using them for purchases and depositing them at Great Southern Bank. There are 250 billion pennies still in circulation.

Q: Why is penny availability slowing down?

A: Penny circulation depends on people spending and depositing their coins. As people save pennies in jars and drawers without new ones being minted, banks have less inventory to distribute. Additionally, the Federal Reserve has closed some coin distribution terminals, making it harder for banks to access pennies in certain areas.

Q: Will pennies disappear completely?

A: Not anytime soon. With 250 billion pennies in circulation, they'll be around for quite a while. However, as production has stopped, circulation is beginning to slow down.

 

How This Affects Your Banking

Q: What will Great Southern Bank do if we run low on pennies?

A: We're monitoring the situation closely and will continue providing pennies for as long as possible. If and when penny availability becomes limited, we'll round up to the nearest nickel or dime in your favor when you cash checks. All deposits will always be credited for the exact amount—no rounding.

Q: Will I lose money because of rounding?

A: No. Our current rounding policy benefits the customer by rounding up in your favor. However, if federal legislation passes in the future, rounding practices may change to align with new guidelines.

Q: Will this affect my electronic payments?

A: Not at all. Credit card, debit card, ACH, and online transactions continue to process at exact amounts with no rounding. Electronic payments are completely unaffected by the penny situation.

Q: Can I still get rolls of pennies from the bank?

A: We will continue providing pennies to customers for typical business needs as long as supply allows. However, due to limited availability, we cannot fulfill large coin orders or provide rolled coins to non-customers or collectors at this time.

 

What You Should Know

Q: Should I do anything with my saved pennies?

A: Yes! If you have pennies at home, we encourage you to bring them to Great Southern Bank. You can deposit them at any banking center, use our coin counting machines (which will continue accepting pennies), or exchange them for bills or deposit into your account. Depositing your saved pennies helps keep them in circulation and supports the broader community.

Q: What are other countries doing?

A: Several countries have already phased out their lowest-denomination coins, including Canada (penny), Australia (1- and 2-cent coins), and New Zealand. These countries have successfully transitioned to rounding for cash transactions while maintaining exact pricing for electronic payments.

Q: What happens next?

A: Congress has the constitutional authority to make decisions about U.S. currency. Bills have been introduced in both chambers to formally phase out the penny. In the meantime, Great Southern Bank is working with the Federal Reserve, the U.S. Treasury, and industry partners to monitor the situation and ensure a smooth transition for our customers.

 

Additional Resources

Have Questions?

Learn More About the National Situation:

 

Our Commitment to You

Great Southern Bank is working closely with the Federal Reserve, the U.S. Treasury, and industry partners to monitor penny circulation and minimize any impact on your banking experience. We appreciate your understanding and flexibility during this transition.