Yes, banks accept pennies, but the rules around how and when have tightened
Your bank will take pennies. Federal law requires banks to accept U.S. currency in any denomination, including the penny. But "will accept" does not mean "will process without friction." Most banks now charge fees for coin deposits that exceed a certain amount, require coins to be rolled or sorted by denomination, or direct you to a coin-counting machine instead of a teller. Some banks have stopped accepting loose coins altogether and will only take them if they arrive in original bank rolls.
The shift happened gradually over the past decade as banks reduced their coin-handling infrastructure. Fewer people use cash, fewer coins move through the system, and the cost of processing small quantities of pennies rose relative to their value. A bank paying a worker to count and verify a jar of pennies costs more than the pennies are worth.
Key Takeaways
- Banks must legally accept pennies, but many now charge fees for coin deposits or require coins to be pre-rolled and sorted by denomination.
- Loose coins typically face higher fees or outright rejection; coins in original bank rolls are usually accepted without charge.
- Credit unions often have more lenient coin policies than large national banks, though policies vary by institution.
- Coin-counting machines at grocery stores and retailers offer an alternative to banks, though they typically take a percentage of the total.
- If your bank refuses coins, you can request the manager cite the specific policy in writing and consider switching to a bank with a coin-friendly policy.
What your specific bank's coin policy actually is
Call your branch directly and ask. Do not assume based on what happened to someone else. Bank of America, Wells Fargo, Chase, and other large national banks have different policies by region and by branch. Some branches accept rolled coins with no fee. Others charge $5 to $10 per deposit. Some accept coins only from account holders. Some do not accept coins at all and direct customers to Coinstar or similar services.
When you call, ask three things: whether they accept coins, whether there is a fee, and whether coins must be rolled. Write down the name of the person who answers and the date. If you later encounter a different policy at the same branch, you have documentation of what you were told.
Credit unions tend to be more flexible. Many credit unions still accept loose coins without fees, particularly if you are a member. If your bank has become hostile to coins, switching to a local credit union may be worth the effort.
How to prepare coins for deposit if your bank accepts them
Banks that accept coins usually require them to be rolled. Penny rolls contain 50 coins and are sold at most banks for a small fee (usually under $1 per box of rolls). You can also order them online. Roll your pennies tightly so they do not fall apart during handling.
Some banks accept coins in any container as long as they are sorted by denomination. Others require original bank rolls. A few still accept loose coins but charge a per-coin fee or a flat deposit fee. Ask your bank which method they prefer before you show up with a bucket of pennies.
If your bank has a coin-counting machine on-site, you may be able to use it for free as an account holder. Some banks charge a small fee even for members. The machine sorts and counts automatically, which is faster than rolling by hand.
Alternatives if your bank will not take your pennies
Coinstar machines are located in most grocery stores, pharmacies, and retailers. They count and sort coins automatically. The catch: Coinstar takes a percentage of the total, usually between 10% and 11.9%. If you have $10 in pennies, you will receive roughly $8.80 to $9. You can choose to receive your payout as cash, a gift card, or a charitable donation (the donation option waives the fee).
Some retailers with customer service desks will exchange coins for bills if you are making a purchase. This is not a formal policy at most places, but it costs them nothing and takes seconds, so many will do it as a courtesy.
You can also spend the pennies directly. Vending machines, laundromats, parking meters, and toll booths still accept pennies, though fewer of these exist than they did ten years ago. If you have a large quantity, this is slow but free.
What to do if a bank refuses coins and you believe they should not
Ask to speak with the manager. Explain that federal law requires banks to accept U.S. currency. The manager may clarify that the bank accepts coins but charges a fee, or they may stand by a no-coins policy. If they refuse, ask them to provide the policy in writing. Most banks will not do this because it creates a paper trail that could be questioned by regulators.
If the bank continues to refuse, you have a few options. File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints about unfair or deceptive practices. A single complaint may not change the bank's policy, but a pattern of complaints can trigger regulatory attention.
The most practical option is usually to switch banks. If your current bank has made coins unwelcome, a credit union or a smaller regional bank may offer better terms. You are not obligated to stay with a bank that does not serve your needs.
Why banks stopped wanting coins
The economics are straightforward. Processing coins is labor-intensive. A teller must count them, verify the count, bag them, and log them in the system. A machine must be maintained and emptied. The Federal Reserve charges banks for coin distribution and processing. Meanwhile, fewer people use coins, so the volume has dropped and the cost per coin has risen.
During the 2020 pandemic, coin shortages made the problem worse. People hoarded coins, businesses stopped accepting them, and the Federal Reserve restricted coin distribution to banks. Many banks used this as a reason to discourage coin deposits. Even after the shortage ended, many never reinstated their coin policies.
Pennies are the worst offender because they are the lowest-value coin. A penny costs roughly 1.7 cents to produce, so the metal and manufacturing cost alone exceeds the face value. Banks lose money on every penny they process. This is why some banks have quietly stopped accepting them while still accepting quarters, dimes, and nickels.
The ongoing debate about whether pennies should exist
This is not a new argument. Economists, retailers, and consumer advocates have debated for decades whether the penny is worth keeping. Canada eliminated the penny in 2013. Some U.S. lawmakers have proposed doing the same. The argument for elimination: the penny costs more to make than it is worth, slows down transactions, and clutters wallets and registers. The argument against: eliminating it would require congressional action, retailers worry about rounding, and some people view it as a symbol of the monetary system.
For now, the penny remains legal tender and banks must accept it. But the practical reality is that the penny is becoming harder to use. Banks are discouraging deposits. Retailers are pushing customers toward card payments. Vending machines no longer accept them. The penny is not officially dead, but it is slowly being phased out through friction rather than legislation.
Frequently Asked Questions
Can I deposit pennies at an ATM?
Most ATMs do not accept coins at all. Some newer machines at certain banks have coin-deposit slots, but they are rare. Your best bet is to ask your bank whether any of their ATMs accept coins. If not, you will need to visit a teller or use a coin-counting machine.
What if I have a large amount of pennies?
Call your bank first and ask whether they can handle a large deposit and whether there are fees. Some banks will ask you to bring coins in over multiple visits to avoid overwhelming their processing. If your bank refuses, Coinstar or a coin-counting machine is your fastest option, though you will pay a percentage fee.
Do credit unions accept pennies better than banks?
Many do, but it varies by credit union. Credit unions tend to have fewer branches and lower transaction volumes, so coin processing is less of a burden. Call your credit union and ask. If they accept coins without fees, it is one more reason to consider switching.
Can I refuse to accept pennies as payment?
If you are a business, you can set your own payment policies and refuse cash entirely if you choose. If you are an individual, you can decline pennies in personal transactions, though it is unusual. Legally, there is no requirement for individuals to accept any form of payment.
Will banks ever go back to accepting coins easily?
Unlikely in the near term. The trend is toward less cash use overall, not more. As digital payments grow, the demand for coin processing will continue to fall. Banks will continue to discourage coins unless something changes the underlying economics—such as a major shift back to cash use or a federal mandate to accept coins without fees.