Saying Goodbye to the Penny: What It Means for Your Wallet

For more than 100 years, the penny has jingled in our pockets, lined piggy banks, and filled countless coin jars. But soon, the United States will say farewell to its smallest coin.

Why Phase Out the Penny?

The federal government’s decision to phase out the penny comes down to cost and convenience. It now costs more than one cent to produce a single penny—making it a loss for the U.S. Mint. In addition, most pennies rarely make it back into circulation, often collecting in drawers, jars, or car cup holders instead of being reused in everyday transactions.

What Happens Next?

• Rounding at the Register: Cash transactions will round to the nearest five cents. Digital payments (debit, credit, apps) won’t be affected—those will still be charged down to the exact cent.
• You Can Still Use Them: Pennies will remain legal tender, so any you have on hand can still be spent or deposited at the bank.

Rooted in Arkansas, Growing with Change

As this change moves forward, Farmers & Merchants Bank has no control over how long pennies will remain available. Availability will ultimately depend on the U.S. Mint and Federal Reserve. We will continue to process deposits of pennies.

From the smallest coin to the largest financial decisions, change is a part of life. At Farmers & Merchants Bank and the Bank of Fayetteville, we remain rooted in Arkansas—supporting our communities, adapting with the times, and helping our customers grow through every transition.