The U.S. Mint and Federal Reserve have announced plans to end production of the penny in 2026, marking a historic shift in how Americans will handle cash transactions. In fact, they have already begun to cut back on penny production. While this change may raise questions or concerns, it’s designed to simplify currency management and reduce costs—without disrupting how people bank, shop, or save.
We understand that this change will impact our local businesses and community members and we are already seeing the impacts to our availability to access pennies through the Federal Reserve. Because caring is at the heart of everything we do, we felt it was important to let you know what we are experiencing and how we are responding.
How is MVSB Responding to Current Shortages?
Because we are already having some difficulties accessing pennies through the Federal Reserve, we are enacting the following changes to ensure we can best serve our local businesses:
- Limited Distribution: We will be limiting the distribution of pennies to our established business customers as we are able to do so.
- No Rolled Pennies for Non-Customers: Unfortunately, we will no longer provide rolled pennies to non-customers.
What Can You Do to Support Local Businesses As They Navigate This Change?
Local consumers can also help their local businesses as they are awaiting guidance from the federal government and navigating the necessary changes to their businesses.
- Use Exact Change or By Electronic Payments: Debit, credit, and digital transactions will not be affected. Prices will continue to be charged to the exact cent. When using cash, paying in exact change will conserve limited penny resources.
- Bring Your Change: We encourage all customers to bring in any spare change from your cars and storage jars to MVSB. We’ll deposit it into your accounts and ensure it gets back into circulation for our local businesses. Please note that in branch offices without automatic change machines, we ask that you allow us 24-48 hours to count and deposit your coins. Self-service automatic coin counters are available in Exeter, North Conway, Portsmouth and Rochester
- Stay informed: Follow updates from the federal government and MVSB for any new details about the transition timeline.
Why Penny Production Is Ending?
The decision to stop producing pennies comes after years of analysis showing that the cost of making and distributing the coin far exceeds its face value. Each penny costs more than one cent to produce, and demand for physical coins has steadily declined as digital payments and card transactions become more common.
What Happens to Pennies Already in Circulation?
At this time, the federal government has only announced that they will stop making and distributing pennies, but they have not announced plans, or any associated dates, for discontinuing pennies as legal tender. As long as pennies remain legal tender, you can continue to use them for purchases and/or deposit them at your bank. Their face value (one cent) won’t change. MVSB branches will continue to accept pennies for deposit or exchange, ensuring customers can manage their change conveniently and confidently
How Prices and Transactions Will Be Impacted?
One of the most common concerns is how prices will be rounded once pennies are no longer readily available. Based on similar penny discontinuations in other countries, we might expect the following changes:
- Electronic payments: Debit, credit, and digital transactions will not be affected. Prices will continue to be charged to the exact cent.
- Cash transactions: Businesses may choose round totals to the nearest five cents when paying with cash. This rounding will likely only apply only to the final total, not to individual items.
