The news about the pennies has spread like wildfire. If you have a jar, drawer, or piggy bank filled with pennies, you may be wondering: Should you cash in your pennies now?
While the U.S. government stopped manufacturing new pennies, that does not mean the pennies you already have are suddenly worthless. Fortunately, pennies remain legal tender and retain their face value. The U.S. Treasury says the Federal Reserve will continue recirculating the roughly 114 billion pennies already in existence for as long as possible. You may see stores start to round up purchases by $0.05 if you start to pay with cash, however.
So, should you cash in your pennies now? Not necessarily, because for most people, this deadline isn’t that urgent. However, turning a large collection of pennies into cash can be a convenient way to put money sitting around your home back into your budget.
What should I do with my pennies now?
If you’ve accumulated a large number of pennies, you have several options if you want to be as proactive as possible after the penny was discontinued.
1. Deposit them at your bank or credit union
One of the simplest choices may be depositing your pennies into your bank account. The Treasury says consumers may continue to deposit pennies at their financial institutions. However, banks may have their own policies for handling large quantities of coins, including requiring customers to roll or wrap them first.
Before loading up several bags of pennies, call your bank or credit union and ask:
- Do you accept penny deposits?
- Do the pennies need to be rolled?
- Is there a limit on how many coins you can deposit?
- Is there a coin-counting machine available?
- Are there any fees?
- Do you need to be an account holder?
Policies can vary by financial institution, so checking ahead of time can save you a trip to your bank this weekend.
2. Use a coin-counting machine
Coin-counting machines can be a convenient option if you have a substantial amount of loose change.
The trade-off is that some machines charge a service fee when you choose cash. Depending on the service and location, other payout options may have different fee structures.
If you have a large amount of change, compare the convenience of a coin-counting machine with the potential cost of the fee before deciding.
3. Spend your pennies
You don’t necessarily have to exchange your pennies for paper money.
The Treasury is actually encouraging consumers to spend pennies they already have. Keeping existing pennies moving through the economy can help businesses and consumers adjust as the supply of new pennies disappears.
If you have a small container of pennies, consider using them for everyday cash purchases rather than letting them continue to collect dust. Carry around a coin purse and start making smaller purchases if you can!
4. Look for collectible pennies
Before dumping every penny into a coin-counting machine, take a quick look through your collection. Most pennies are worth exactly one cent. However, certain older, rare, or unusual coins may have additional value to collectors.
If you suspect you have a collectible coin, consider having it evaluated by a reputable coin dealer or numismatic organization rather than automatically cashing it in for face value. Dump out your coin jar and take a look to see if you have any valuable coins that collectors are looking for!
5. Put the money toward a financial goal
If you have accumulated $20, $50, $100, or more in loose change, converting it into cash can give you a small amount of money to put toward a specific goal.
You could use it toward:
- An emergency fund
- A credit card payment
- A household bill
- Groceries
- A savings goal
- A debt payment
Small amounts can add up, especially when combined with other changes to your spending and saving habits. For more ideas, check out the Max Cash® Financial Resources Toolkit, which includes budgeting and money-management resources.
How long will banks still accept pennies?
Banks and financial institutions can continue accepting pennies even though new pennies are no longer being manufactured. The Treasury has stated that consumers may continue depositing pennies with their financial institutions. Pennies also remain legal tender and retain their nominal value in perpetuity.
The Federal Reserve has also confirmed that it remains committed to facilitating the acceptance of penny deposits from banks and credit unions.
That means there isn’t a federal deadline requiring Americans to cash in their pennies.
However, there is an important distinction between penny production ending and pennies disappearing from circulation. The U.S. Mint is no longer producing new pennies, but existing pennies can continue circulating for years. The Federal Reserve distributes coins to banks and credit unions, which then make them available to consumers and businesses. As the existing supply gradually declines, businesses may increasingly rely on rounding for cash transactions where pennies are unavailable. The specific rules can vary by state and jurisdiction.
It is also important to remember that private businesses generally aren’t federally required to accept cash or coins as payment. Businesses can establish their own payment policies unless state or local law provides otherwise.
Is now a good time to cash in pennies?
There isn’t one answer that applies to everyone. If you have a large amount of pennies sitting around and you would rather have the money available for everyday expenses or savings, cashing them in now can make sense for convenience. But there is also no general reason to panic and rush to exchange your pennies simply because new ones aren’t being manufactured.
Existing pennies are still worth one cent each. Ending production does not automatically increase the value of ordinary pennies.
Consider cashing in your pennies if:
- You have a large amount of loose change taking up space.
- You want to put the money toward a financial goal.
- You need additional money for everyday expenses.
- Your bank offers a convenient, low-cost way to deposit coins.
- You would rather have the money in your checking or savings account.
Consider holding onto some pennies if:
- You enjoy collecting coins.
- You have older or unusual pennies that may warrant further research.
- You want to continue using them for cash purchases.
- The pennies have sentimental value.
The key is not to confuse the end of penny production with the end of the penny’s value. Ordinary pennies remain worth one cent.
What happens to pennies after production ends?
The U.S. Treasury stopped manufacturing new pennies because the cost of producing them had risen significantly. The Treasury reported that the production cost had reached 3.69 cents per penny, compared with the coin’s one-cent face value.
Rather than immediately removing pennies from the economy, existing coins will continue to circulate.
As the number of pennies available to businesses decreases, cash transactions may increasingly be rounded to the nearest five cents where applicable. Non-cash transactions, such as credit card and electronic payments, aren’t affected by the physical availability of pennies.
For consumers, this means you don’t need to treat your penny collection like an expiring asset. You can spend, deposit, or exchange your pennies according to your own needs.
