Penny Phaseout

In February 2025, President Trump directed the U.S. Treasury to stop producing pennies as part of a broader effort to cut unnecessary government spending. Each penny costs nearly four cents to produce and distribute, making it economically inefficient. While minting has ended, existing pennies remain legal tender, and banks – including Highland – will continue to accept and process them. As availability declines, some banks and merchants may run low or out of pennies, potentially affecting cash transactions that rely on exact change.

Some stores are already changing their policies to round to the nearest nickel, round down for cash transactions or ask for exact change – you’ll notice these changes already if you purchase items at McDonalds or Kwik Trip for example.

• High production costs that exceed the coin’s value
• Decreasing usage in daily transactions
• Improved efficiency for retailers, banks, and customers
• Environmental benefits from reduced metal use and transportation

What This Means for You

• Pennies are no longer minted or distributed.
  Highland Bank is limiting penny distribution. We will no longer provide rolled pennies.

• Check Cashing.
  Procedures will vary based on banking relationship. Bankers will provide options during your transaction.

• Electronic transactions remain unchanged.
  Debit, credit, and digital wallet transactions are charged for the exact amount, with no rounding.

• Penny deposits are still accepted.

What This Means for Your Business

• Pennies will no longer be minted or distributed.
  If you regularly ordered/requested pennies as part of recurring change orders, and are a bank customer, penny order sizes will now be limited.

• Check Cashing.
  Procedures will vary based on banking relationship. Bankers will provide options during your transaction.

• Electronic transactions remain unchanged.
  Debit, credit, and digital wallet transactions are charged for the exact amount, with no rounding.

• Penny deposits are still accepted.