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November 19, 2025
Sometimes the smallest things raise the biggest questions, and lately, that’s true for the penny. The U.S. Treasury has announced it will no longer produce new pennies, and many people are wondering what that means for their everyday lives. Will pennies still be accepted at stores? Are they still legal tender? Let’s take a look at what this really means for you.
TL;DR: The U.S. Treasury has stopped producing new pennies, but existing pennies remain legal tender and can still be spent. Banks can no longer order new pennies from the Federal Reserve, so pennies will gradually become scarce and some cash transactions may be rounded to the nearest five cents. Chesapeake Bank has coin machines at four Virginia branches.
Why Is the Penny Being Phased Out?
It all comes down to cost. According to government reports, it takes about 3.7 cents to manufacture just one penny. Over time, that adds up to millions of taxpayer dollars spent making a coin worth only one cent. By ending penny production, the Treasury hopes to make the U.S. currency system more efficient and sustainable.
Will Pennies Still Be Accepted?
Yes. All pennies currently in circulation can still be used in daily transactions. Whether you are paying for a cup of coffee, counting out exact change, or depositing rolled coins at the bank, your pennies are still valid and spendable.
What is changing happens behind the scenes. Banks can no longer order new pennies from the Federal Reserve, and in some areas, vaults are no longer being refilled. Over time, this will make pennies less common in circulation, but they are not going away overnight.
How the Penny Phase Out Might Affect You
For most people, life will continue as usual. You can still spend pennies, save them, or deposit them. However, here are a few important things to keep in mind:
- Fewer pennies over time – Since no new ones are being made, pennies will gradually become less common in circulation.
- Change orders may vary – If you request rolled coins from the bank, there may be times when penny requests cannot be completely filled.
Explore answers to more common questions about penny deposits and coin orders directly on the Federal Reserve’s official site here.
Making the Most of Your Change
Where to cash in coins in Virginia: Chesapeake Bank coin machines
Chesapeake Bank has coin machines at four branches. Depositing coins is free for Chesapeake Bank customers; non-customers can use the machines for a 5% fee.
| Branch | Region | Coin Machine |
|---|---|---|
| Lafayette | Williamsburg | Yes |
| Gloucester | Middle Peninsula | Yes |
| Mathews | Middle Peninsula | Yes |
| Kilmarnock | Northern Neck | Yes |
Bring your coins loose — the machine counts them, so there is no need to roll them first. Find hours and directions for each branch on our Find Us page.
If you have jars of coins sitting at home, now is a great time to put them to use. Four Chesapeake Bank locations have coin machines available for you to use, making it simple to turn your spare change into cash or deposit it directly into your account. Bringing in your pennies ensures they keep working for you instead of sitting idle.
Tips For Consumers
- Cash Them In – bring your coins to one of the following locations: Williamsburg (Lafayette branch), Mathews, Gloucester, or Kilmarnock. Chesapeake Bank customers may deposit coins at no charge non-customers are charged a 5% fee of the total deposited.
- Rounding May Start – when paying with cash, totals may be rounded to the nearest five cents.
- Consider Digital Payments – debit card and mobile payments remain exact and unaffected by rounding. This is a great time to explore digital options offered by Chesapeake Bank.
- Donate Them – many charities, schools and community organizations accept spare change and can use it to support their causes. Visit our Outreach page to find community partners you can support.
Tips for Businesses: How Can Retailers Adapt?
Retailers across the country are already implementing strategies to manage the shortage. Here are some strategies to consider implementing immediately:
- Consider rounding cash transactions such as rounding to the nearest nickel.
- Review current supply and modify procedures for handling coin inventory and shortage.
- Provide training to your staff to help explain change to customers.
- Promote and even incentivize electronic payment options.
- Post a notice at your front door and / or register area.
Businesses banking with Chesapeake Bank can talk to their Business Relationship Officer about coin orders and cash handling as supply changes.
For any questions or concerns, connect with our Business Development team or call 877-695-8239.
The Future of the Penny
Congress and financial experts continue to discuss the long-term future of the one-cent coin, and updates will likely continue in the years ahead.
For now, you can be assured: pennies are still in your pocket, still in your piggy bank, and still spendable. They just are no longer being newly produced.
Related Topics & Sites
ABA Banking Journal – U.S. Mint produces last penny – November 12, 2025
American Bankers Association – Penny Phaseout
Chesapeake Bank Cash Management and Treasury Services
A: Banks can no longer order new pennies from the Federal Reserve, and in some areas vaults are no longer being refilled. Chesapeake Bank continues to fill coin orders subject to supply, but there may be times when a penny request cannot be filled completely.
A: Chesapeake Bank has coin machines at four branches: Lafayette in Williamsburg, Mathews, Gloucester, and Kilmarnock. Depositing coins is free for Chesapeake Bank customers. Non-customers can use the machines for a 5% fee.
A: Some cash transactions may be rounded to the nearest five cents as pennies become scarcer. Debit card, mobile and other digital payments are unaffected and stay exact, because no physical change is involved.
