You may have noticed signage beginning in November 2025 announcing that the coin machines at our Hadley, Northampton and Springfield Mercy Medical Center Branches are no longer accepting penny deposits as of this month. We want to share what’s behind this change, and what it means for you.
Why this is happening:
The U.S. Treasury has officially stopped producing new pennies because it now costs significantly more to make a penny than the coin is worth. Due to rising production costs and changing payment habits, the Treasury determined that minting new pennies is no longer a cost-effective use of resources.
What the Federal Reserve is doing:
While the Treasury has ended penny production, the Federal Reserve will continue circulating the existing supply of pennies for as long as possible. However, as that inventory has dwindled, many Federal Reserve coin distribution offices have stopped accepting penny deposits and fulfilling penny orders. As a result, many coin machines are no longer taking large quantities of pennies: we can’t return them to the Federal Reserve the way we used to. Without a place to deposit them, holding on to bulk pennies creates risk and operational challenges for us.
What this means for you:
Pennies are still legal tender. You can use them for purchases, or deposit them into your UMassFive accounts just like any other money. However, in order to encourage the natural circulation and phasing out of the penny as is being imposed by the U.S. Treasury, you should consider reaching into that jar of pennies by the door each time you head out make a purchase, and know that there is no rush to get your cent's worth. The penny will not be gone tomorrow. If you wish to deposit pennies into your account, we'll continue to accept them—just not through the coin machines.
Looking ahead, as pennies naturally become less common in circulation, many businesses may begin rounding cash transactions to the nearest five cents. This does not mean your pennies are without value, and businesses will be required to continue accepting them as legal tender.