As part of our ongoing commitment to keeping you informed about developments that may affect your financial transactions, we would like to make you aware of recent actions taken by the U.S. Department of the Treasury regarding the nation’s penny supply.

In February, the Treasury officially ceased production of new pennies as part of a federal cost-reduction initiative. While pennies remain legal tender, it is estimated that approximately 250 billion are still in circulation. However, as the existing supply gradually diminishes, limited availability may affect cash transactions in some areas.

To prepare for this transition, banks and retailers have been advised to review their cash-handling practices. Adjustments may include:

• Rounding transaction amounts to the nearest nickel where appropriate;
• Posting signage to inform customers of changes in handling coin transactions; and
• Encouraging the use of electronic payments, which remain unaffected by this development.

According to the Federal Reserve, rounding is expected to have a minimal impact on consumers, as differences tend to balance out over time. Nonetheless, this change marks a significant shift in everyday transactions, and open communication will be essential as businesses and financial institutions adapt.

Citizens Bank of the South is closely monitoring this matter in coordination with the Georgia Bankers Association (GBA) and the American Bankers Association (ABA). These organizations are actively engaging with federal agencies to ensure a smooth transition for both consumers and businesses.

For additional information, we encourage you to review the ABA’s Frequently Asked Questions on this topic, available by clicking the penny below:

Should you have any questions or require further clarification, please do not hesitate to contact your local Citizens Bank of the South branch. Our staff will be pleased to assist you.