FDIC-Insured - Backed by the full faith and credit of the U.S. GovernmentHave you heard? The U.S. Treasury stopped the production of the U.S. Penny earlier than previously announced as the final penny was stamped earlier this month. This marks the end of production of the one-cent coin after more than 230 years in circulation.
It costs 3.7 cents to produce a penny. This decision, driven by the high cost of manufacturing pennies and declining cash use, is projected to save taxpayers approximately $56 million annually.
Pennies will remain legal tender, which is fortunate since more than a billion dollars’ worth are in circulation. Most are rarely used as they gather dust in dresser-top coffee cans, are forgotten in vehicles or discarded in “take a penny, leave a penny” bowls at cash registers.
Hoarding pennies is not necessary. Pennies will not inherently become more valuable after production ends as they will still be worth one-cent.
We will have more information about this important topic when the Federal Reserve announces new regulations early next year.