The U.S. Treasury has stopped producing pennies for general circulation. Once the Federal Reserve’s remaining supply is gone, banks will no longer be able to order pennies.

To keep cash transactions running smoothly, Bank of Utah will move to a rounding system for cash withdrawals, check-cashing payouts, and other cash transactions when our supply is depleted. We’ll continue accepting penny deposits while they remain in circulation, but businesses and individuals who handle cash should begin preparing for this transition.

The FAQs below explain Bank of Utah's rounding system, what you can expect when making or receiving cash, and how to prepare for this transition once our penny supply is exhausted.

FAQs

Why are pennies being phased out?

According to the U.S. Mint's 2024 Annual Report, the cost to make pennies exceeds their value. With production ending and the Federal Reserve’s inventory declining, banks won’t be able to order new pennies once the supply runs out.

How will Bank of Utah handle rounding?

When pennies are no longer available, Bank of Utah will follow a rounding method that ensures fairness over time, one where cash transactions are adjusted up or down evenly, so no one consistently gains or loses.

Under this system, cash transactions (including check-cashing payouts and cash withdrawals) will round to the nearest five cents:

  • Amounts ending in 1, 2, 6, or 7 round down
  • Amounts ending in 3, 4, 8, or 9 round up
  • Amounts ending in 0 or 5 stay the same

For example:

  • $10.02 becomes $10.00
  • $10.04 becomes $10.05
  • $10.06 becomes $10.05
  • $10.09 becomes $10.10

For cash disbursements (like check cashing or withdrawals):

  • A $225.02 check will pay out $225.00
  • A $225.08 check will pay out $225.10

Bank of Utah will implement rounding once our penny supply is exhausted.

Does rounding apply to transactions made with debit cards or checks?

No. Only cash transactions will be rounded. Electronic payments such as debit cards, credit cards, checks, and ACH transfers will continue to process the exact amount, including the cents.

Can I still order pennies for my business?

Only while our existing inventory lasts. After that, coin orders will exclude pennies. Businesses should adjust till setups and point-of-sale systems for rounding now.

Can I still deposit pennies?

Yes. You may deposit pennies (rolled or loose) at any Bank of Utah branch while they remain in circulation.

What should businesses do to prepare?
  • Enable rounding in your point-of-sale system, if available.
  • Train employees to explain rounding to customers.
  • Deposit accumulated pennies to simplify cash counts.
What isn’t changing?
  • Electronic payments will continue to process exact amounts.
  • Account balances, statements, and interest calculations will still include cents.
  • Pennies remain legal tender while they’re in circulation.

Questions?

Reach out to a banker at your local branch or call 801-409-5000.