"The coin shortage is so bad, banks will now pay you extra for change."

July 27, 2020 All Blog Posts Category

As if we needed any more challenges in 2020, earlier this month a national coin shortage hit America. That right, America doesn’t have enough physical change to go around. And yep, you can blame that on the pandemic, too. In short, coins aren’t circulating through the economy as readily as they once were since people are going out and spending less–and opting for digital or contactless payments wherever they can.

This coin shortage hurts people who still need to, or want to, pay in cash. That’s because some businesses are now requiring exact change, or for customers to pay via debit or credit card because they have no other options. This, in turn, hurts small businesses who may lose customers who want to pay in cash but don’t have exact change. The coin shortage has gotten so bad that last week Kroger, the country’s largest grocery store chain, announced it would stop giving exact change.

And as the coin shortage continues to swell across the country, now banks are stepping in to get their hands on more of the currency–by offering to pay people to bring in their spare change. As CNN reports, the Community State Bank in Wisconsin has launched a Coin Buyback Program. The program will pay people a 5% premium for their change. In other words, if you bring in $100 in coins, the bank will pay you $105 in cash. That 5% bonus is higher than the interest rates most savings accounts offer.

READ more at: https://www.fastcompany.com/90529869/the-coin-shortage-is-so-bad-banks-will-now-pay-you-extra-for-ch

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