Unity Bank will be closed on Monday, February 16th, in observance of President's Day. We will resume regular hours on Tuesday, February 17th.
The U.S. Department of the Treasury has ended production of the penny, and the Federal Reserve is gradually ceasing penny distribution as inventories run out. This change will affect how businesses handle cash transactions and how financial institutions manage coin orders and deposits. Unity Bank is committed to guiding you through this transition and keeping you informed every step of the way.
Here’s what this means for Unity Bank customers:
- Pennies Will Remain Legal Tender: You can still use pennies for transactions, but they will become less available over time.
- Ordering Pennies: Financial institutions, including Unity Bank, will no longer be able to order pennies once local Federal Reserve inventories are depleted.
- Depositing Pennies: We will continue to accept pennies, as they remain legal tender.
- Electronic Transactions Remain Unchanged: Your digital payments will still process to the exact cent.
- Cash Transactions: At this time, Unity Bank is not rounding cash transactions.
- Business Customers: If your operations accept cash, you may want to start considering how rounding could affect your processes. We’ll share guidance as more details become available.
- Timing: The phase-out is already underway and varies by region. Some coin distribution locations have already stopped fulfilling penny orders.
We’ll keep you updated.
Unity Bank will continue to share updates as more details become available. If you need assistance or have questions, reach out to your banker today—we’re here for you.
Frequently Asked Questions
Will pennies still be legal tender?
Yes. Pennies will remain legal tender, meaning you can still use them for transactions.
Why is this happening?
The cost of producing pennies exceeded their face value.
Do I need to stop accepting pennies at my business?
No, you can still accept pennies if you choose. As pennies are phased out, businesses will need to decide how to process cash payments that do not end in $0.00 or $0.05.
Can I still deposit pennies at Unity Bank?
Yes, you can continue to deposit pennies at your local Unity Bank. If we anticipate any changes, we will provide advance communication.
Where can I learn more?
Visit the Federal Reserve FAQ page.