A historic shift in American currency took place this year: the U.S. Department of the Treasury officially ended production of the penny after more than 230 years in circulation. While Osgood Bank—and businesses everywhere—will continue to honor the penny as legal tender, the coin will no longer be available through Federal Reserve orders.
This decision is rooted in cost savings. According to the U.S. Mint’s 2024 Annual Report, it cost 3.69 cents to produce and distribute a single penny—resulting in an $85 million loss in 2024 alone. Ending penny production reduces ongoing financial strain and modernizes the nation’s currency system.
But with such a significant change, our customers naturally have questions. Here’s what you need to know.
How Will This Impact Osgood Bank Customers?
Although penny production has stopped, the penny itself is far from gone. With nearly 114 billion pennies still in circulation, it may take decades for the coin to fully fade from everyday use. In the meantime, here’s what you may experience:
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Cash transactions may round to the nearest nickel. As pennies become less available, many retailers will begin rounding cash totals up or down to the nearest five cents. Card and digital payments will remain exact.
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Transaction withdrawals may not include pennies. If you're withdrawing money or cashing a check, we will offer alternative options if pennies are unavailable as part of your requested cash breakdown.
- Change orders for businesses will be limited. For our business customers, penny orders will be limited—and availability cannot be guaranteed—as banks across the country draw from a decreasing supply.
Got Pennies? Here’s What You Can Do
Your pennies still have value, and they remain legal tender. Here are a few ways to make the most of the coins you already have:
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Keep using them. Pennies can still be used for purchases, deposits, and payments just as they always have.
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Cash in your coin. Bring your loose change to any Osgood Bank location and turn it into usable account credit or cash.
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Go digital when you can. Using your Osgood Bank debit card or your digital wallet ensures exact totals and eliminates the need for coin-based change.
What Are Local Businesses Doing?
Businesses across our communities are adapting to the change in various ways. Here’s what you might notice:
- Many businesses will round cash totals to the nearest nickel to offset the lack of pennies on hand.
- To avoid rounding and streamline transactions, you may see more businesses promoting electronic payment methods.
Our Commitment to You
Osgood Bank is committed to supporting our customers and local businesses throughout this transition. As always, we will:
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Provide clear communication as updates become available
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Support individuals, families, and businesses with personalized financial guidance
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Share updates from the Federal Reserve and U.S. Treasury across our website and social media
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Assist our business customers with change orders, payment solutions, and operational needs
If you have questions or need assistance navigating this change, our team is here to help. Please reach out to any Osgood Bank location—your success is our priority.