Making Cents of the Penny Changes

What to Know About the U.S. Treasury Ending Penny Production

The U.S. Department of the Treasury has officially ended production of the penny, marking a historic change in how cash transactions are handled nationwide. While pennies remain legal tender, all banks – including Southern Bancorp – can no longer order new pennies from the Federal Reserve. 

This change is happening across the country, not just at Southern Bancorp, and we’re here to help you navigate this transition smoothly. Below you’ll find details on what this means for you, our current policies, and tips for making the most of your pennies. 

Our Current Penny Policies (as of November 2025) 

• Limited Penny Availability 
  We have a limited supply of pennies and, like all banks across the country, are unable to order more from the U.S. Federal Reserve. 

• • • Business customers are limited to $2.50 in pennies per week until supplies run out. 

• • • Personal customers are encouraged to use alternative methods to receiving pennies (such as depositing “change” from cash transactions into an account).  

• Options for Customers 
  If you’re cashing checks or making withdrawals, we encourage the following alternatives to receiving pennies: 

• • • Deposit leftover cents into your savings account (like our Season’s Savings account). 

• • • • • Example: Need to cash a $105.23 check? We’ll give you $105 in bills and deposit $0.23 into your preferred account. 
           

Tips for Making the Most of Your Pennies 

• Cash Them In 
  Bring pre-rolled pennies to any Southern Bancorp location and we’ll exchange them for quarters or bills. We can even provide penny sleeves for you if needed!  

• Start Rounding 
  Expect cash payment totals to round to the nearest five cents as stores and retailers begin to limit their penny transactions.  

• Go Debit or Digital 
  Debit cards and mobile payments are unaffected by this nationwide penny shortage. Consider making your Southern Bancorp debit card with your go-to payment method, which features contactless debit, Apple Pay, Google Wallet, and Samsung Pay compatibility, as well as many other great features! 

FAQs 

1. Are pennies still legal tender? 
Yes, you can still use pennies for transactions, but new pennies are no longer being produced. 

2. Why is this happening? 
The U.S. Treasury ended penny production to “reduce costs and streamline currency use nationwide.” For more information about their decision, click here.  

3. Can I still deposit pennies? 
Absolutely! Bring them to any branch, and we’ll help you deposit or exchange them. 

4. What happens when banks run out of pennies? 
Simply put, when banks run out of pennies, we will no longer be able to service penny-related transactions. This may mean requiring the pennies of a transaction to be deposited into an account or not being able to make certain cash transactions if there is no account to deposit the pennies into.  

5. How can I avoid penny-related issues? 
Use debit or mobile payments whenever possible or deposit leftover cents into your account.  

For businesses, consider encouraging exact payments (cash, card, or digital), upgrading your POS systems to accept more payment methods, rounding cash payments up or down to the nearest nickel, or replacing your stock to avoid totals that end in pennies.  

Questions? Call or visit your local branch – banksouthern.com/locations