The Government of Canada is discontinuing production of the penny as of 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.
At iNova Credit Union, we want to make this transition as easy as possible for our members. Consistent with other financial institutions, iNova Credit Union will no longer issue pennies as of February 4, 2013.
Cash back transactions will be rounded to the nearest nickel. We will continue 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". Or you can open the page immediately by clicking here: http://www.mint.ca/store/template/default/pennyinfo.html#.URBEkB34J2A
Frequently Asked Questions
1. Will I be able to deposit pennies after February 4, 2013? 2. Will I be able to withdraw pennies from my account? 3. What are the rounding guidelines? What do they mean? 4. I am not an iNova Credit Union member. Will I be able to bring in my pennies to iNova Credit Union? 5. How long do I have to bring in the pennies for deposit? 6. I run a business, where can I find more information on what this means for my business?
1. Will I be able to deposit pennies after February 4, 2013? Yes, iNova 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.
2. Will I be able to withdraw pennies from my account? No. As Royal Canadian Mint will stop producing and distributing pennies after February 4, 2013, iNova Credit Union will also stop distributing pennies to clients.
3. 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. iNova Credit Union will continue to accept pennies on deposit and will count them to the cent.
4. I am not a iNova Credit Union member. Will I be able to bring in my pennies to iNova Credit Union? Yes; however, coin deposit charges apply. This charge will be waived if you donate your pennies as part of iNova penny drive.
5. 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.
6. I run a business, where can I find more information on what this means for my business? For more information on what the penny phase out means for your business, visit 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