With the U.S. Mint striking its final batch of pennies in Philadelphia last week, the 232-year production run of the one-cent coin has effectively ended.
Much of the shift is driven by rising production costs and declining cash usage. Over the past decade, the Mint’s cost to produce each penny has climbed from 1.42 cents to 3.69 cents, according to the U.S. Mint.
The penny isn’t discontinued and still counts as legal tender, and the final batch is expected to enter circulation in early 2026. But with no new coins being made, the circulating supply will shrink as older pennies drop out of use. Some retailers have already reported penny shortages as production has scaled down, according to Reuters.
And with fewer people using cash for purchases — especially coins — spare change is playing a smaller role in everyday transactions as more people pay with cards or their smartphones. Cash now makes up 14% of consumer payments, down from 31% in 2016, according to Federal Reserve data.
“Now is a good time to cash in [your coins],” says David Rosenstrock, a certified financial planner with Wharton Wealth Planning. “The primary reasons relate to practicality, as coins have an eroding purchasing power, take up space and are becoming less convenient to use or exchange.”
Here’s a look at why.
It’s getting harder to exchange coins
One of the most reliable ways to turn coins into cash is through your bank, which may accept rolled coins or, in some cases, use in-branch counting machines for account holders. Another common option is coin-counting kiosks commonly found in grocery stores, but they often charge a fee.
But those services aren’t as widely available anymore, with many banks reducing the number of lobby coin-counter machines, according to Bankrate. With fewer places willing to process coins, jars and bags of change are harder to turn into usable cash.
There’s less need for coins overall
While pennies remain in circulation, expect businesses to use them less. As happened in Canada after it discontinued the penny in 2013, many retailers are expected to round cash transactions to the nearest nickel.
Some retailers are already doing this, including Wendy’s, certain McDonald’s locations and Midwest convenience chain Kwik Trip, according to CBS.
There’s also no federal law requiring private businesses to accept any specific form of U.S. currency, which is why some storefronts post “we don’t accept pennies” signs.
Some states do require exact change, however. Even so, with most purchases now made by card or smartphone, the need for cash — especially coins — continues to decline. As such, coins are becoming less convenient to use or exchange as more businesses move away from handling low-value cash.
Inflation erodes the value of your coins
Coins stashed in your home don’t earn interest, so their buying power erodes over time as inflation rises.
Those coins add up, too: The median household was estimated to hold $60 to $90 in coins, according to a 2022 Federal Reserve report.
Assuming you had about $100 in coins sitting in jars in 2020, that money today buys roughly $20 less than it did five years ago, based on inflation as measured by the consumer price index.
By contrast, a high-yield savings account would have helped limit the loss in buying power, since coins don’t earn interest on their own. Currently, you can find annual percentage yields for these accounts above 4%, which is higher than the current year-over-year inflation rate of 3%.
“After you convert your coins, toss that into a high-yield savings account and actually make money from it rather than gathering dust,” says Alvin Carlos, a CFP with District Capital Management. “This is low-stakes money, but it’s still money. Little habits like cleaning out change, consolidating old accounts or selling unused stuff can add up surprisingly fast.”
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