The U.S. Treasury has begun the process of ending the production of the penny. New pennies are expected to stop entering circulation by early 2026. The decision is driven by cost, as in recent years, each penny has cost far more than one cent to make. Pennies that are already in circulation will remain legal tender.
Timeline & Expected Future Milestones
- February 2025: President Trump directed the U.S. Treasury to stop producing pennies, citing high production costs.
- May 2025: U.S. Treasury confirmed the final order of penny blanks (metal discs used to mint coins), and distribution began winding down.
- Late 2025-Early 2026: Bangor Savings Bank’s ability to order penny shipments from the Federal Reserve has been restricted. As such, we will begin rounding up1 on cash-out transactions when applicable as each branches' penny supply is depleted. We will also no longer be able to honor request for rolled pennies once our supply is gone.
- 2026 and Ongoing: Expect gradual withdrawal from circulation as pennies are deposited, spent, or collected.
- No Official Recall: Pennies will remain legal tender indefinitely, but availability will decline.
How Rounding Works at Bangor Savings Bank
To align with our You Matter More® promise, the cash payout for cash transactions, when applicable, that includes pennies will be rounded up1 to the nearest nickel to benefit our customers.
- .01, .02, .03, or .04 → rounds up1 to .05
- .06, .07, 08, or .09 → rounds up1 to .10
- .00 or .05 → no rounding
Examples
- If you cash a check for $100.01, it will be rounded up1 to $100.05
- If you cash a check for $100.13, it will be rounded up1 to $100.15
- If you cash a check for $100.34, it will be rounded up1 to $100.35
- If you cash a check for $100.46, it will be rounded up1 to $100.50
- If you cash a check for $100.77, it will be rounded up1 to $100.80
- If you cash a check for $100.99, it will be rounded up1 to $101.00
How This May Affect Your Business
Learn what impact the penny phase-out might have on your business, how you can prepare, and how we're supporting businesses.
Frequently Asked Questions
Why is the U.S. penny phase-out happening?
The U.S. Treasury is retiring the penny. The main reason that production is ending is because of the cost. Each penny costs more than one cent to make, and with fewer people using cash for small purchases, the penny’s role in everyday commerce has faded.
The U.S. Treasury’s decision to retire the coin helps reduce waste, save taxpayer dollars, and simplify cash handling without affecting the value of your money.
Will this affect my accounts or balances?
The penny phase-out only affects physical penny circulation, not account balances or transactions.
Will my deposits or card, digital, and ACH payments and transactions be rounded up?
This change does not affect deposits or card, digital, or ACH payments or transactions, it only impacts cash payouts.
Will Bangor Savings Bank continue accepting pennies?
Yes! As long as the penny remains legal tender, we will continue to accept pennies at all our branch locations, including our lobby coin machines, for deposit, payment, or exchange as long as we have the capability.
Find a branch near you with a coin machine.
When will my local branch begin rounding up1 for cash payouts?
Bangor Savings Bank will continue to use pennies in our branches as long as we have them available. Only when a branch's penny supply is depleted will a branch begin rounding up1 cash payouts on transactions when applicable. Until then, all cash payouts will continue to be paid to the exact cent whenever possible.
What should I do with the pennies I have?
- Use Them – Spend them in everyday cash transactions soon while they’re still common in circulation.
- Deposit Them – Bring them to your local branch for deposit.
- Keep Them as Keepsakes – Some people may like to save a few pennies as mementos. However, they should not be relied upon for future cash needs.
Can I still purchase a roll or box of pennies?
Bangor Savings Bank branches will continue to honor requests for penny rolls provided that requests are in line with historical orders. We are managing our current inventory very closely to ensure we can meet customer requests as long as possible. Once our supply is depleted, we will no longer be able to honor requests for rolled pennies.
How does this affect my everyday purchases?
- Cash purchases at retailers may round to the nearest nickel on the final total. Rounding policies may vary among businesses and institutions.
- Card, mobile wallet, and online payments will continue to process to the exact cent.
- Tips and line items can still include cents. Rounding to the nearest nickel applies only to the final cash amount owed or returned.
What if I do not want my cash out amount rounded?
At Bangor Savings Bank, cash out transactions will be rounded up1, when applicable. (See more information above). However, if you prefer your cash amount is paid exactly you can:
- Deposit your change to your Bangor Savings Bank transactional account.
- Deposit your check(s) to your Bangor Savings Bank transactional account.
We’re Here to Help!
If you have questions about the penny phase-out, rounding practices, or depositing pennies, stop by your local branch or reach out to our Bangor Support team.