Although pennies continue to be recognized as legal tender, the US Treasury has stopped producing them because manufacturing costs now exceed their face value. As our supply of pennies runs low you may notice changes in how we handle coin transactions. We are working to make sure all members can continue to access the coins they need, while also meeting important compliance requirements.

To ensure we are meeting members’ needs, we have reviewed penny transactions, consulted with our currency provider, and here is an overview of our current Penny Policy* and related services, as of January 1st, 2026:

• The coin counting machine at the Bath branch no longer accepts pennies; loose coins must be sorted to remove pennies before use
• All branches will still accept rolled pennies
• Members may continue to purchase rolled pennies, depending on branch availability
• A new rounding method was adopted for non-member check cashing transactions, to be implemented when our penny inventory has been depleted.

*Subject to change without notice

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Timeline & Expected Future Milestones

• February 2025: The U.S. Treasury announced it would stop producing pennies because of their high manufacturing costs.
• May 2025: The final order for penny blanks (the metal discs used to make coins) was confirmed, and distribution began to slow down.
• November 2025: Midcoast FCU started monitoring both penny transactions and shipments from their currency provider.
• December 29, 2025: The Bath office coin machine no longer accepts pennies.
• January 1, 2026: All Midcoast FCU branches implemented a rounding method for transactions; see details below.
• 2026 and beyond: While pennies remain legal tender, expect them to be gradually withdrawn from circulation as credit unions, banks, businesses, and currency services evaluate their supply of pennies.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include pennies, the exact amount of the check will be deposited into your account, and you may select the amount to be withdrawn to the nearest nickel ($0.05).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

* Subject to change without notice.

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Frequently Asked Questions

1. Why is the U.S. penny phase-out happening?
2. The U.S. Treasury has announced the retirement of the penny, primarily due to production costs exceeding its face value. With cash transactions for small purchases becoming less common, the penny’s significance in daily commerce has diminished. This decision is expected to reduce waste, conserve taxpayer funds, and streamline cash management processes, without impacting monetary value.
3. Will this affect my accounts or balances?
4. The penny phase-out only affects physical penny circulation, not account balances or transactions.
5. Will my deposits or card, digital, and ACH payments and transactions be rounded up?
6. This change does not affect deposits or card, digital, or ACH payments or transactions, it only impacts cash payouts.
7. When will my local branch begin rounding up for cash payouts?*
8. 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.
9. What should I do with the pennies I have?
10. Use Them – Spend pennies in cash transactions while still accepted.
11. Deposit Them – Roll and deposit at your credit union; loose pennies are not allowed.
12. Keep Them as Keepsakes – You may save a few for memories, but don’t count on them for cash value.
13. Does the Credit Union provide paper penny rolls to members?
14. Yes, and they are FREE for members! Visit any branch to pick some up, while supplies last.
15. Can I still purchase a roll or box of pennies?
16. Midcoast FCU branches will keep fulfilling requests for rolled pennies as long as they have enough stock available.
17. How does this affect my everyday purchases?
18. When you pay with cash at stores, your total might be rounded to the closest five-cent increment, depending on each business’s policy.
19. Payments made by card, mobile wallet, or online will still be charged down to the exact cent.
    
    • 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.

* Subject to change without notice.