The U.S. Treasury has ended the production of the penny. New pennies are no longer in circulation. The decision is driven by cost, as in recent years, each penny has cost far more than one cent to make. Pennies that are already in circulation will remain legal tender.

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Timeline & Expected Future Milestones

• February 2025: The U.S. treasury was directed to stop producing pennies, citing high production costs.
• May 2025: U.S. Treasury confirmed the final order of penny blanks (metal discs used to mint coins), and distribution began winding down.
• November 2025: Midcoast FCU’s ability to order penny shipments from the Federal Reserve has been restricted. As such, branch locations will be limited in their ability to honor requests for rolled pennies as our supply becomes exhausted.
• December 18. 2025: The Bath office coin machine will no longer accept pennies.
• December 31, 2025: All branch offices will no longer accept rolled pennies.
• 2026 and Ongoing: Expect gradual withdrawal from circulation as pennies are deposited, spent, or collected. MIdcoast FCU will begin rounding on cash out transactions when applicable, as each branch office’s penny supply is depleted. (See “rounding” details below)
• No Official Recall:  Pennies will remain legal tender indefinitely, but availability will decline and individual businesses may choose whether or not they will accept pennies.

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How Rounding Works at Midcoast FCU

For cash transactions that include pennies, the following practice* will be in effect once our penny supply has been depleted:

• For members and shared branching guest members cashing checks in amounts that include pennies, the exact amount of the check will be deposited into your account, and you may select the amount to be withdrawn to the nearest nickel ($0.05).
• For non-members cashing checks drawn on Midcoast FCU checking accounts in amounts that include pennies, the check will clear our member’s account for the exact amount of the check, and the recipient will receive the funds rounded up to the nearest nickel. 
• .01, .02, .03, or .04 → rounds up* to .05
• .06, .07, 08, or .09 → rounds up* to .10
• .00 or .05 → no rounding
  
  *Midcoast FCU may change or end this practice at any time without notice.

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Frequently Asked Questions

1. Why is the U.S. penny phase-out happening?
   The U.S. Treasury is retiring the penny. The main reason that production is ending is because of the cost. Each penny costs more than one cent to make, and with fewer people using cash for small purchases, the penny’s role in everyday commerce has faded. The U.S. Treasury’s decision to retire the coin helps reduce waste, save taxpayer dollars, and simplify cash handling without affecting the value of your money.
2. Will this affect my accounts or balances?
   The penny phase-out only affects physical penny circulation, not account balances or transactions.
3. Will my deposits or card, digital, and ACH payments and transactions be rounded up?
   This change does not affect deposits or card, digital, or ACH payments or transactions, it only impacts cash payouts.
4. Will Midcoast FCU continue accepting pennies?
   For now, you can still use pennies for transactions and deposits, but we won’t be able to provide them in cash exchanges or coin orders once our inventory runs out. Please note: Some businesses may stop accepting pennies from customers.
5. When will my local branch begin rounding up* for cash payouts?
   Midcoast FCU will continue to use pennies in branch locations as long as they are available. Once the branch location has depleted their penny supply, they will begin rounding up* cash payouts on transactions when applicable. Until then, all cash payouts will continue as stated above.
6. What should I do with the pennies I have?
   • Use Them – Spend them in everyday cash transactions soon, while they’re still in circulation.
   • Deposit Them – Bring them to your local branch for deposit.
   • Keep Them as Keepsakes – Some people may like to save a few pennies as mementos. However, they should not be relied upon for future cash needs.   
7. Can I still purchase a roll or box of pennies?
   Midcoast FCU branches will continue to honor requests for penny rolls as long as inventory allows.
8. How does this affect my everyday purchases?
   • Cash purchases at retailers may round to the nearest nickel on the final total. Rounding policies may vary among businesses and financial institutions.
   • Card, mobile wallet, and online payments will continue to process to the exact cent.

* ‎Midcoast Federal Credit Union reserves the right to modify or discontinue this rounding practice at any time without prior notice.