Pennies have been discontinued — should you toss them or cash in? Here’s what to do next

The era of freshly minted pennies has officially come to a conclusion in the United States, but the familiar copper-colored coins may carry more value than several people realize. While production has stopped, experts state that Americans should think twice before disposing of loose change in jars, drawers, or car cup holders.

Penny Production Comes to a Halt

The U.S. Mint produced its final one-cent coins earlier this year after receiving instructions from President Donald Trump. Shortly after taking office, he ordered penny production to stop, and the Mint completed the final of its remaining blanks on November 12. The move was driven largely by increasing costs, as producing a penny has long surpassed its face value.


“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump mentioned in a post on Truth Social. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”

As per the Treasury Department, eliminating penny production is anticipated to save almost $56 million in material costs.

Businesses Begin Adjusting to Penny Shortages

Since production stopped, some major retailers have started reporting penny shortages, leading to creative and sometimes unconventional reactions. Convenience store chain Sheetz introduced a promotion providing customers a free soda in exchange for bringing in pennies. Meanwhile, McDonald’s cited that specific outlets will round cash transactions up or down to the nearest five cents.

As more businesses consider rounding practices, questions have arose about whether pennies still serve a purpose in daily commerce.

Your Coin Jar May Be Worth More Than You Think

Despite the penny’s shrinking role, financial experts suggest that the coins already in circulation still matter. Several Americans underestimate how much money they have in loose change.

Kevin McColly, CEO of Coinstar, stated to USA Today that people underestimate the value of their coin jar by about half. A 2022 Federal Reserve study discovered that households normally have between $60 and $90 in neglected coins. Meanwhile, a Wall Street Journal report estimated Americans discard as much as $68 million in coins every year.

“If you lost a $100 bill you’d look for it. If you lost a $20 bill you’d look for it. If you lost a book you’d look for it,” Robert Whaples, an economics professor at Wake Forest University, told the Journal. “But a penny, you’re just not going to look for it.”

Where to Exchange Your Coins

Turning coins into currency is not simple. Several banks no longer provide coin-counting machines. Capital One and PNC removed theirs in the 2010s because of low usage, while TD Bank discontinued its machines after investigations discovered inaccurate counts.

Coinstar continues to be a widely available option, operating almost 24,000 kiosks nationwide and having processed over 800 billion coins. Financial sites such as NerdWallet and Bankrate also suggest checking local banks, credit unions, or retailers that still accept loose change.

McColly urges people to return coins to circulation, citing that doing so helps reduce future production costs.

“They’re metal,” he stated. “And they have a long and useful life.”

Concerns Over a Sudden Transition

Although several economists agree the penny is no longer necessary, some industry groups state that the abrupt end to production has resulted in uncertainty for businesses.

“We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go,” cited Jeff Lenard with the National Association of Convenience Stores.

Currently, pennies remain legal tender, and experts cite that consumers shouldn’t see them as worthless. Instead of tossing them aside, that forgotten coin jar may still deserve a second look.

FAQs:

1. Are pennies still legal tender?
Yes, pennies can still be used for transactions. Businesses must accept them where cash payments are permitted.

2. Why did the U.S. stop making pennies?
The cost to produce a penny surpassed its face value. Ending production helps minimize government spending.