Do Canadian banks still take pennies? This question has sparked a lot of debate among Canadians in recent years. With the decline in the use of coins in daily transactions, many people are curious about the status of pennies in Canada’s banking system. In this article, we will explore whether Canadian banks still accept pennies and the reasons behind this change.
The Canadian penny, also known as the one-cent coin, has been a part of the country’s currency since 1858. However, due to the low value of the coin and the cost of producing it, the Canadian government announced in 2012 that it would no longer produce pennies. The Royal Canadian Mint stopped distributing new pennies in February 2013, and banks have been phasing out the coin over time.
Despite the government’s decision to discontinue the production of pennies, many Canadians still have a considerable amount of the coin in their wallets. This has led to the question of whether banks are still accepting them. The answer is yes, Canadian banks still take pennies, but with certain conditions.
Banks are required to accept pennies from customers, but they may not necessarily give them back. Some banks have implemented policies where they will not return pennies to customers or may round transactions to the nearest nickel. This is due to the high cost of handling and storing pennies, as well as the difficulty in counting them accurately.
There are a few reasons why Canadian banks may no longer distribute pennies. Firstly, the cost of producing a penny has been higher than its face value for years. The Royal Canadian Mint has reported that it costs about 1.6 cents to produce each penny, which means that the government has been losing money on the coin for quite some time.
Secondly, the low value of the penny makes it impractical for small transactions. Many businesses have stopped accepting pennies due to the inconvenience of counting them and the time it takes to do so. This has prompted banks to reconsider their role in distributing the coin.
However, there are still some instances where pennies are necessary. For example, the penny is still used in certain tax calculations and in transactions involving cash payments. Additionally, some Canadians prefer to have pennies for their collections or as a way to save money.
In conclusion, while the production and distribution of pennies have been phased out in Canada, banks are still accepting them from customers. However, the use of pennies is becoming less common, and businesses may not always give them back. As the country continues to move towards a cashless society, the future of the penny remains uncertain.
