End of the Penny – Important Facts
November 13, 2025
In early 2025, President Trump gave direction to the U.S. Treasury to stop producing new pennies to reduce government spending. The U.S. Mint halted penny production in June and banks must now rely solely on recycled coins for their supply.
What we want our clients to know:
- Pennies will continue to remain legal tender and can be used for purchases or deposited at your local branch. We will continue to accept them.
- We currently have access to an ample supply with our currency/coin provider, and we are able to meet the needs of our clients. We will be monitoring this situation closely and will adapt as needed as the supply shrinks.
- Please don’t hoard coins. Hoarding pennies now that production has halted will cause localized shortages and circulation slowdown.
Tips for consumers:
- Expect rounding when shopping with local retailers. When paying with cash, totals may start to round to the nearest five cents.
- Use digital payments. Card and mobile transactions will continue to process to the exact cent and are not affected by rounding.
How businesses can prepare:
- Review your current coin supplies and adjust future orders and deposit plans to account for limited penny availability.
- Encourage digital payments by promoting or incentivizing electronic options for clients.
- Consider adopting rounding to the nearest nickel for cash transactions.
Additional information and guidance can be found by visiting the Federal Reserve and the American Bankers Association websites or by clicking these links or using the QR codes below:
American Bankers Association – FAQs – Phasing Out the Penny
The Federal Reserve – FAQs – Penny Deposits and Orders
Royal Banks of Missouri is here to make this transition as smooth as possible. If you have any questions about how this may affect your business or daily banking, call (314) 212-1500 or stop by your local branch.
We’re always happy to help!
Member FDIC
