Penny Phase Out

The Government of Canada discontinued production of the penny on February 4, 2013. The cent will remain Canada's smallest unit for pricing goods and services. The penny will retain its value indefinitely and can continue to be used when making payments at retailers that accept them. For cash transactions, the Government of Canada is adopting a rounding guideline that has been used successfully by other countries - rounding, either up or down, to the nearest five-cent increment.

Consistent with other financial institutions, Sydney Credit Union stopped issuing pennies on February 4, 2013. 

Cash back transactions will be rounded to the nearest nickel. We has continued to accept loose pennies and fifty cent rolls for cash deposit, calculated to the cent.  Credit card, debit card and cheque transactions will use one cent increments.

How does this affect cheque cashing and business members?

Our credit union will be using the rounding process outlined below. Our business members will also need to determine a rounding policy for their customers.

  • Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents
  • Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents
  • Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents
  • Amounts ending in 8 cents and 9 cents are rounded to the nearest 10 cents
  • Amounts ending 0 cent and 5 cents remain unchanged

Here is an example of a restaurant using the rounding process, where the total bill of $4.52 is paid as $4.50 with cash and as $4.52 when paid for with debit, credit and cheque payments.

Additional information can be found at: www.mint.ca, click on "Learn" and then "Phasing out the Penny". Open the page immediately by clicking here: http://www.mint.ca/store/template/default/pennyinfo.html#.URBEkB34J2A

Frequently Asked Questions 

  • Will I be able to deposit pennies after February 4, 2013?
  • Will I be able to withdraw pennies from my account?
  • What are the rounding guidelines? What do they mean?
  • How long do I have to bring in the pennies for deposit?
  • I run a business, where can I find more information on what this means for my business?

 Will I be able to deposit pennies after February 4, 2013?

  • Yes. Sydney Credit Union will continue to redeem and/or deposit pennies. As per our current requirements, coins will need to be rolled and special coin deposit charges may apply.

Will I be able to withdraw pennies from my account?

  • No. As Royal Canadian Mint stopped producing and distributing pennies after February 4, 2013, Sydney Credit Union also stopped distributing pennies to clients.

What are the rounding guidelines? What do they mean?

  • The phasing out of the penny will only impact cash transactions. For cash transactions, the Government of Canada is adopting a rounding guideline that has been used successfully by other countries – rounding, either up or down, to the nearest five-cent increment.
  • For example, if you are cashing a cheque for $20.92, the amount you will receive in cash will be rounded down to $20.90. If you are cashing a cheque in the amount of $20.93, the amount you will receive will be $20.95.
  • Sydney Credit Union will continue to accept pennies on deposit and will count them to the cent.
How long do I have to bring in the pennies for deposit?
  • Pennies will continue to retain their value indefinitely, so there is no time limit on when pennies can be deposited.

I run a business, where can I find more information on what this means for my business?