What to Do with Pennies Now that Production has Ended
On November 12, 2025, the U.S. Mint pressed its last penny, ending over 230 years of production. So, even though it’s estimated that there are 114 billion pennies in circulation across the U.S., banks and credit unions can no longer order new ones. Whether you use cash daily or have an old piggy bank collecting dust, here’s what Indiana residents need to know about managing their pennies during this historic transition.
Why is the penny being discontinued?
The U.S. Mint decided to stop penny production due to the cost that it takes to make the one-cent coin, which has increased to between $1.42 cents and $3.69 cents per penny. The Secretary of the Treasury has stated that the decision was also due to the penny not meeting the current needs of the United States. That can be seen with a shift in consumer behavior, as cash made up only 14% of consumer payments, down from 31% in 2017, according to Federal Reserve Data.
What happens next without pennies?
Even though new pennies won’t be added to circulation, existing pennies will remain legal tender indefinitely. Then over time, as pennies start to fall out of circulation, retailers will begin rounding cash transactions to the nearest nickel. So, what does that mean for cash purchases that don’t end in 0 or 5? While there are no official rules, the most recommended form of rounding is “symmetric rounding”, meaning if the final digit of the price is 1, 2, 6, or 7, the amount is rounded down and if the final digit is 3, 4, 8, or 9, the amount is rounded up.
Example: The final cost of an item is $10.02. As pennies fall out of circulation, this price would be rounded down to $10.00. Or, if the final cost is $10.08, the purchase would round up to $10.10.
Digital payments, including debit cards, credit cards, and mobile wallets, won’t change and should continue to process exact amounts.
3 Smart Ways to Handle Your Pennies
Deposit Them Fee-Free at Encompass Credit Union
For Indiana residents, the smartest option is to deposit your pennies at Encompass Credit Union. We accept pennies at all of our branches in Tipton, Frankfort, and Kokomo with no fees for our members. That means your coins go directly into your checking account or savings account, and you get to keep every cent.
If you’re not an Encompass member yet, you may be considering a coin-counting machine like the Coinstar kiosks available in nearby grocery stores. While they are convenient, they come at a significant cost. Coinstar charges 12.9% plus $0.99 for cash redemption. That means if you have $100 in pennies, you'll only receive $87.01 in cash. However, Coinstar does offer free redemption if you choose an eGift Card option instead of cash.
Use Them While Businesses Still Accept Them
Pennies remain legal tender, which means that businesses can still accept them for purchases. If you’re used to paying with cash, consider using up your pennies for small purchases or making exact change. This helps keep the coin in circulation during the transition period and helps clear out your change jar naturally over time.
However, keep in mind that businesses aren't required by federal law to accept any specific form of currency. Some don’t accept cash or have policies limiting the number of coins they’ll accept in a single transaction.
Creative and Charitable Ways to Use Pennies
If you’re looking for non-traditional uses for your pennies, here are some more options.
Donate to charity: Many organizations accept loose change, and some run specific penny drives to support their causes. Every cent adds up, and your pocket change can make a big difference for local charities in Indiana.
Teach kids about money: Pennies are a great teaching tool for young children learning to count and understand currency. You can use them for math lessons or to start nurturing a strong savings habit.
Save as a keepsake: Since 2025 was the final year of penny production, you might want to save a few coins as historical memories or family keepsakes.
Make the Smart Choice with Your Pennies
With penny production officially ended, now is the perfect time to convert your coins into usable funds. Whether you have a small handful or several jars full, Encompass Credit Union is here to help you deposit them without losing a penny to fees. Stop by any of our branch locations in Tipton, Frankfort, or Kokomo, or call us at 800-675-8852 to learn more about membership and our services.
Penny Discontinuation FAQs
Are pennies still legal tender?
Yes, pennies remain legal tender indefinitely. You can continue using them for purchases at businesses that accept them, even though no new pennies are being produced.
Where can I deposit pennies without paying fees?
Encompass Credit Union accepts penny deposits from members at all branch locations, with no fees. Many banks and credit unions have similar policies, though it's best to call ahead and confirm.
How much does Coinstar charge to count coins?
Coinstar charges 12.9% plus $0.99 for cash redemption. They offer free eGift Card redemption as an alternative.
Will pennies become valuable collectibles?
Some pennies are already valuable to collectors, particularly rare dates and error coins. 2025 pennies may have future collectible value as the final year of production, though most circulated pennies will likely remain worth their face value.
How will rounding work for cash transactions?
As pennies become scarce, businesses will round cash transactions to the nearest nickel. Amounts ending in .01 and .02 typically round down to .00, while amounts ending in .03 and .04 round up to .05. Digital payments are unaffected.
About Encompass Credit Union
As a not-for-profit, member-owned financial institution, we've been serving Tipton, Clinton, and Howard counties since 1953. Our mission has always been to help our members and community thrive financially. Whether you're depositing pennies or exploring digital payment options to reduce your need for cash, or you simply have questions about how the penny phaseout affects you, we're here to help.