The Penny Is Phasing Out: What You Need to Know

The U.S. Treasury stopped producing new pennies in November 2025. The goal is to reduce government spending, following the path taken by countries like Canada and Australia. As production winds down, the Federal Reserve has begun limiting penny distribution. Pennies will remain legal tender, but availability will vary by region and may shift day-to-day. As their availability declines, cash transactions may need to be rounded to the nearest five cents. Every business will need a plan for handling the transition.

What You Can Expect

• Penny orders are currently limited and soon will be unavailable.
• Change orders may be adjusted without notice depending on supply.
• Exact-change transactions may become harder to process.
• Cash transactions may be rounded to the nearest five cents.

Ways to Prepare

• Rounding: Many businesses round cash totals to the nearest five cents.
• Signage: Post clear explanations of rounding or exact-change policies.
• Digital Payments: Encourage card or digital payments to reduce reliance on coins.
• Point of Sale (POS): Businesses may need to update POS systems and accounting processes to handle rounding. Consult your software provider for assistance.
• Training: Ensure your staff understands rounding rules and can explain them confidently.
• Coin Inventory: Keep extra nickels on hand to support rounding.

How Summit State Bank Is Supporting You

• When we cannot provide exact change in cash, we will deposit the change into your account.
• You are welcome to bring in saved pennies to deposit at our branches to help maintain circulation.
• Credit, debit, and online transactions are not impacted.
• We can expand your digital and card-based payment options to reduce dependence on coins with merchant services offered through Select Bankcard.

Changes for Non-Customers

• Going forward, we will not honor penny requests from non-customers or coin collectors.
• For non-customers cashing checks, when we cannot provide exact change, we will round up to the nearest five cents. If the check is $100.00 or more, a $2.00 check cashing fee will apply to each check over this threshold beginning January 2, 2026.

We are closely monitoring this matter and will post updates on our website as information becomes available. Please call us at 707.568.6000 or visit www.summitstatebank.com to connect with our team. We are here to help you navigate the change with confidence.