Banks are paying people to bring in their spare change as the national “currency shortage” occurs


Photo Credit: Peter Dazeley - Getty Images
Photo Credit: Peter Dazeley – Getty Images

Good cleaning

  • The Federal Reserve is working to reverse a national “currency shortage” during the new coronavirus pandemic.

  • Retailers like Walmart and Kroger are asking customers to use the exact change or pay with credit cards as banks struggle to find replacement coins.

  • You may be able to earn extra money by handing coins to local banks or retailers in your area.

If you’ve shopped at Walmart or CVS recently, you may have noticed that many pay lines are designated only as debit or credit, that’s because the United States Federal Reserve announced that it was experiencing “low coin inventories” due to the pandemic. According to the organization, which is responsible for regulating the national foreign exchange inventory and how it is distributed to banks across the country, the Fed is “strategically” rationing currencies to banks for two reasons.

Social estrangement and security measures caused employees of the US Mint to reduce the production of new money, which was compounded by the fact that many people have spent less physical cash in recent years. months (meaning cash does not return to a bank) “The flow of coins through the economy … stopped,” Jerome Powell, chairman of the Federal Reserve, said at a public forum in June. AND The Wall Street Journal It also reports that coin deposits have dropped 50% since March.

Local businesses are also affected by the shortage, from ATMs at major retailers to laundries and gas stations. According to NPR, many Walmart locations have converted their self-checkout records to take cards only, Kroger is offering customers the change due to their payment on loyalty cards, and Wawa stations are asking for rolls of coins from change of tickets. Chances are, you’ll run into a retailer asking you to pay with cards or an exact change until the Federal Reserve reduces the shortage in the coming months.

But the solution to the shortage is not necessarily at the Fed: Fast company reports that more than $ 47 billion currencies are already in circulation, which means that many Americans are simply withholding the exchange they are not spending right now. In fact, an expert told him Forbes that what we are experiencing is a disruption of circulation rather than a real shortage. “An interruption is a better way to describe it,” said Yiming Ma, an assistant professor in the finance division at Columbia Business School. “It reflects the fact that once circulation resumes these disruptions will be alleviated.”

Still, banks and even some retailers are working on programs where there is a good incentive to bring additional change (or coin banks in inventory!) That may be out there.

Will banks buy spare coins and exchange?

It all depends on the area you live in, but there is a good chance that credit unions and local branches of national banks will actually pay you an extra value for the change. A Wisconsin-based bank, Community State Bank, made headlines this week when it announced it would offer a $ 5 coin bonus worth $ 100, up to a $ 500 bonus. Some banks have offered a percentage bonus in any currency customers bring: In Maine, Gorham Savings Bank (a state institution) offers a 10% buyback for any currency they bring. According to American Banker, local JPMorgan Chase branches in New York have also offered to buy back coins to customers, at different rates in different locations. And stores can also provide free counting services, such as Quick Trip, a chain of convenience stores spread throughout the South and Midwest, the Dallas Morning News reports.

When in doubt, call a local branch of a state or community bank or credit union to inquire about buyback programs.

Other ways to convert the change into cash:

If you can’t find a local bank or retailer that is looking to buy coins again, or count them for free, head to your nearest grocery store; there is a good chance there is a Coinstar machine there. Coinstar allows you to do the following with your replacement gear:

  • Turn it into cashminus a 12% processing fee.

  • Turn it into a gift card, which can be used at Amazon, Lowe’s, Starbucks or Best Buy, for example. The company will not charge you a fee for doing so.

  • Donate your spare change. Nor will you be charged for doing so. You can send your coins to organizations like the American Red Cross, Feeding America, and Children’s Miracle Network for free.

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