The Surprising Reason Why the Penny Is Going Away (and Why It Matters Now)

The U.S. Mint has stopped producing new pennies, and over time, fewer one‑cent coins will be available. If you’ve been wondering why is the penny going away, you’re not alone, this shift is raising questions about how everyday transactions may change.

While pennies haven’t disappeared, this change is gradually affecting how some cash transactions are handled.

Here’s what you need to know, and how Vantage West is helping make the transition smooth.

Why Is the Penny Being Phased Out?

A common question right now is: why is the penny going away? The answer comes down to economics and changing consumer habits.

Producing a penny now costs more than three cents* (learn more at U.S. Mint), making it one of the least efficient forms of currency in circulation. Rising material and production costs, combined with a steady decline in cash usage, led the U.S. Treasury to end penny production in late 2025.

At the same time, consumer behavior has changed. The penny is going away, but fewer people rely on cash for everyday purchases, with more transactions happening through debit cards, credit cards, and digital payment methods.

Although the penny is going away and no new pennies are being made, existing pennies remain legal tender and will stay in circulation for as long as supplies allow.

How Will This Affect Your Transactions?

The biggest change members may notice involves cash purchases.

Cash Transactions

As pennies become harder to source, some cash transactions may be rounded to the nearest five cents. This rounding applies only to the final total of a purchase, not to individual items, and is designed to keep transactions simple and consistent at the register.

Common rounding examples:

• $10.02 → $10.00
• $10.03 → $10.05

Electronic Payments

Debit cards, credit cards, checks, and digital payments are not affected. If you’ve been asking why is the penny going away but prices aren’t changing, this is why—electronic transactions still process to the exact cent.

For members who prefer precision, electronic payment options offer a simple way to avoid rounding altogether.

Can I Still Use or Deposit Pennies?

Yes. Pennies are still legal tender and can be:

• Used for purchases
• Deposited into your account

Why is the penny going away? You can continue to bring pennies into any Vantage West branch for deposit, and your funds will be credited as usual. However, as supplies vary by region, availability of pennies at branches may become limited over time. Large or rolled penny requests may not always be possible as cash suppliers gradually reduce distribution.

However, as supplies vary by region, availability of pennies at branches may become limited over time. Large or rolled penny requests may not always be possible as cash suppliers reduce distribution.

What Vantage West Is Doing for Members

As questions like why is the penny going away continue to come up, our focus is on making the transition as simple and transparent as possible.

• Continuing to accept penny deposits while they remain in circulation
• Monitoring cash availability and adjusting branch operations as needed
• Sharing clear guidance on rounding practices and what to expect
• Offering convenient alternatives, including debit cards and digital banking tools that avoid rounding altogether

Our goal is to ensure your account balances, deposits, and transactions remain accurate, regardless of how cash handling evolves.

Questions? We’re here to help.

Why This Change Matters

So, why is the penny going away and what does it really mean for you?

For most members, the impact will be minimal. But for those who frequently use cash—or for businesses that rely on coin for daily transactions—this change may require small adjustments.

Credit unions nationwide are working closely with regulators and industry partners to ensure fairness, consistency, and member protection as the penny gradually exits everyday use.

The Bottom Line

The penny may be fading from circulation, but understanding why the penny is going away makes the transition easier to navigate.