In May 2025, the U.S. Treasury Department announced the U.S. Mint will stop production of new pennies. Jefferson Bank is closely monitoring developments with the U.S. Treasury Department and will remain in contact with Federal Reserve Financial Services. We are committed to making this phase-out process as seamless as possible for our customers.
The U.S. Mint stopped producing new one-cent coins. This decision is primarily based on the fact that it costs more to produce a penny than the coin's face value.
No. Existing pennies in circulation will remain legal tender and keep their full value indefinitely. The penny will gradually phase out of circulation over many years as they are lost or damaged and are not replaced.
Yes. You can continue to deposit pennies into your account at our Banking Centers, just as you do today. We will accept and process them as usual.
Initially, no. Eventually you may find restaurants, grocery stores, and other outlets requiring exact change during checkout. Electronic transactions, such as those made with debit or credit cards, wires, ACHs, etc. will continue to process the exact amount to the cent.
Effective, Monday, December 1, 2025, Jefferson Bank will round up cash back to the nearest nickel. This will occur for cashed checks only. For instance, if cashing a check for $100.02, we will give you $100.05. A check cashed for $100.27 will be rounded up so you will get back $100.30. You may find fast-food restaurants, grocery stores, and other establishments making similar adjustments. Deposits and all electronic transactions will continue to be processed to the exact cent.
Your account balances will not be affected. Transactions will continue to be tracked to the exact cent, ensuring the accuracy of your financial records.
As pennies become less common in circulation, now is a great time to bring in any spare change you have saved up. You can deposit it into your account or exchange it for other denominations.
Yes; however, we may not be able to fulfill the entire order you need. Many Federal Reserve Cash Outlets no longer have pennies available to purchase. As their supply replenishes from financial institutions selling pennies to the Federal Reserve, they may have pennies sporadically available; unfortunately, we are unable to know if/when this occurs. We would advise your business to create a plan of action to accommodate your customer’s needs. This may look different from business to business.
Jefferson Bank offers merchant services for our business customers. Merchant Services expands your business’s payment options and increases your income revenue by setting up your business to accept payments from Visa, Mastercard, Discover, and American Express cardholders. You can reach out to our Treasury Management Sales Team at (210) 736-7218.
Creating a plan of action that best fits your business needs should be considered. Some businesses are choosing to require customers pay in exact change, while others are choosing to round prices to the nearest nickel. Many businesses are also promoting digital payments. Whatever your choice, it is best to seek legal counsel to know state laws that may prohibit rounding down on purchases.
