Penny Phase-Out FAQ




The U.S. Mint has stopped producing new pennies because they cost more to manufacture than they are worth (about 3.7 cents per penny). As production stops, the national supply will gradually decrease until pennies are no longer in circulation.

The phase-out begins in 2025–2026. Pennies will disappear gradually over time—not all at once.

Yes. Pennies remain legal tender. You can still spend or deposit them at F&M Bank as long as they are in circulation.

Only the final cash total will be rounded — not individual prices.

  • $10.51–$10.52 rounds down to $10.50
  • $10.53–$10.54 rounds up to $10.55

Rounding applies both up and down equally and does not create any extra fees.

No. Debit cards, checks, online transfers, and digital payments will continue to process exact to the cent.

Account balances, statements, online transfers, deposits, and checks will continue to show exact amounts. 

Rounding only affects cash transactions. 

No. Rounding is designed to be fair over time, and it rounds both up and down. Other countries that have eliminated pennies have not seen negative effects for consumers.

Businesses may still list and price items to the cent. Only the final cash total is rounded. Many retailers already use this system in countries without pennies.

You may use them as payment or deposit them until they naturally leave circulation. And yes! F&M Bank will continue to accept rolled or loose coin deposits while pennies are still in circulation.

We are preparing early to ensure a smooth transition as penny supplies decline. This allows us to provide consistent service, follow emerging guidance, and help clients adjust with plenty of notice.