Change for change: Local banks create procedures for limited penny inventories

The old saying goes: A penny saved is a penny earned. But what happens when there are no more pennies? That is the question banks, gas stations and other businesses in the community are asking themselves after the U.S. Department of the Treasury suspended production of new pennies this year.

Great Southern Bank, which has a branch in Newton along First Avenue, has already informed its account holders of its new penny policies and how the bank is responding to the federal action directed by President Donald Trump earlier this year. Operations are running as normal for now, but soon they could change.

In a statement to its account holders, Great Southern Bank said it will round up to the nearest nickel or dime — in the customers’ favor — when cashing checks at times when penny availability becomes limited. For instance, cashing a check for $10.02 would be rounded to $10.05. No rounding will occur on deposits.

Knowing pennies may become more scarce, Great Southern Bank asked its account holders to consider depositing them at their bank to help maintain circulation in their community. Coin-counting machines will still accept pennies. The bank also asked its account holders to consider electronic payments.

Even though pennies could be harder to come by, the bank noted that pennies will remain legal tender and can still be used for purchases and deposits.

Other banks may have differing policies when it comes to cashing checks.

Rob Kahn, president and CEO of FNNB Bank, told Newton News that it is business as usual at the downtown bank. The only thing FNNB Bank had to adjust thus far is its coin orders and how many pennies it can disperse to one party to make sure they can still meet all commercial and consumer needs.

Ordering pennies from the federal government is no longer an option for the bank, but FNNB Bank still has its normal inventory that it plans to work through like normal. Kahn said no new procedures have been implemented at the bank yet, such as rounding off to the nearest nickel.

“If a check is deposited, we will still honor the deposit amount at face value of the check without a need to round any amount,” he said. “We are still working on our procedures to adjust to the pennies being out of circulation, but it will most likely consist of rounding to the nearest nickel to make things as easy as possible.”

The discontinuation of pennies, Kahn added, has been talked about for years. All banks have been notified previously that they can no longer order pennies or sell pennies back through different services. Now that the shift is finally happening, he said it will take time for everyone to get used to the new way of doing things.

Even businesses are making changes in response to the nationwide penny pinching. In October, Kwik Trip, Inc. announced its Kwik Trip and Kwik Star locations would round down to the nearest five cents, ensuring a “guest-friendly approach.” Its registers will automatically apply rounding rules to cash purchases.