Jake Miller
In Canada, the majority of banks that take cash deposits still accept rolled coins at their branches. However, some banks like Laurentian Bank have phased out the acceptance of coins as part of their transition to a 100% Advice model. While the Royal Canadian Mint continues to produce coins, there has been a decline in demand for them since the RCM stopped producing pennies in 2013. The COVID-19 pandemic also caused a drop in the supply of coinage in 2020, but this increased again in 2022. Despite these fluctuations, the RCM remains committed to ensuring the circulation of coins, particularly in remote and rural regions with limited banking access.
| Characteristics | Values |
|---|---|
| Do Canadian banks have to accept coins? | The majority of financial institutions that take cash deposits still accept rolled coins at their branches. |
| Are there any banks that do not accept coins? | Yes, Laurentian Bank is one such bank. |
| What are the alternatives to depositing coins in a bank? | Coin acceptance machines are available at some major big-box markets, such as Walmart, and supermarkets, such as Safeway. However, these machines charge a small percentage as a fee. |
| What is the benefit of using a coin acceptance machine? | It provides a convenient way to exchange coins for cash without having to visit a bank branch. |
| What is the role of the Royal Canadian Mint (RCM) in coin circulation? | The RCM manages the national circulation coin management system, ensuring coins are available to users, especially in remote and rural regions with limited banking access. |
| Has the demand for coins changed over time? | Yes, the demand for coins has generally declined, with an 8% decrease each year since 2013. However, the RCM's supply of coins increased by 9% in 2022 compared to 2020. |
| Can old notes be removed from circulation? | Yes, amendments to the Bank of Canada Act and the Currency Act in 2018 gave the government the power to remove legal tender status from bank notes. However, there are currently no plans or legal means to demonetize bank notes in Canada. |
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What You'll Learn
Some banks refuse to accept coins
While the majority of Canadian banks still accept rolled coins, some banks refuse to accept them. For instance, Laurentian Bank does not accept rolled coins as part of its new policy. Julien Perrotte, a Laurentian Bank customer, was unable to deposit $800 in rolled change at his local bank branch. The bank justified its decision by stating that it had transitioned to a 100% Advice model for retail customers, which no longer included coin deposits.
Some banks that do accept coins may require customers to use their coin-counting machines, which may charge a fee for the service. For example, a Reddit user shared that their bank, SRP, refused to accept hand-wrapped coins and instructed them to use their coin machine, which charged a 5% fee.
The refusal of some banks to accept coins can be attributed to operational costs and the increasing popularity of digital banking. Laurentian Bank, for instance, implemented a transformation plan to boost profits and reduce operating costs, which included laying off employees and closing branches. Additionally, the rise of online banking services and digital startups has led some banks to phase out traditional teller services, including coin deposits.
While some individuals may be comfortable with the shift towards digital banking, others still expect banks to accept coins as long as they remain in circulation. Some customers may prefer to take their business to other banks that accept coin deposits or explore alternative options for exchanging their coins.
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Alternatives to banks for coin exchange
While the majority of financial institutions in Canada that take cash deposits still accept rolled coins at their branches, some banks have stopped accepting coins. For instance, Laurentian Bank no longer accepts coins as part of its transition to a 100% Advice model. This has left some customers frustrated and considering changing banks.
If you are looking for alternatives to banks for coin exchange, here are some options:
Coin Exchange Machines
Coin exchange machines, such as Coinstar, are available at some grocery stores and malls. These machines can automatically sort your coins and provide you with the cash value. However, they typically charge a fee for the service, which can be around 12% or even higher. Some people may find this fee unacceptable and prefer to take their coins to a bank that still accepts coin deposits.
Cryptocurrency Exchanges
Another alternative is to explore cryptocurrency exchanges, which allow you to exchange your coins for digital currencies like Bitcoin or Ethereum. Several cryptocurrency exchanges are available in Canada, including popular options such as Coinbase, Binance, and Kraken. These platforms offer various payment methods, including credit and debit cards, wire transfers, and Interac e-Transfers. It is important to note that some banks may block card purchases for cryptocurrency exchanges, so using a debit card or e-transfer might be a more reliable option. Additionally, it is essential to consider the security and ease of use of these platforms, as well as any associated fees, before making a decision.
Retailers and Supermarkets
Some major retailers and supermarkets, such as Walmart or Safeway, may have coin acceptance machines or policies that allow them to accept rolled coins. This can be a convenient option, but it is worth inquiring beforehand to understand their specific policies and any potential fees involved.
Small Businesses
Although it may require some effort, you can explore small businesses in your area that might be willing to accept coins, especially if you are a regular customer. This could include local shops, cafes, or businesses that typically deal with cash transactions and may be more accommodating of coin exchanges.
It is always a good idea to research and compare the different options available to find the most suitable and cost-effective solution for exchanging your coins.
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Accuracy of coin-counting machines
While some Canadian banks still accept rolled coins, others have transitioned to a 100% advice model and no longer offer coin deposit services. Customers who wish to deposit their coins are often directed to use coin-counting machines located within the bank or at grocery stores and malls.
Coin-counting machines, such as Coinstar, are meant to provide a convenient and accurate way to convert coins into cash. However, there have been concerns and reports of inaccuracies with these machines. In 2016, a class-action lawsuit was filed against TD Bank due to allegations of accuracy issues with its coin-counting machines, resulting in the bank retiring these machines from its branches. Similar concerns were raised about the coin-counting machines in Loblaw stores, which were also owned by Coinstar.
In an experiment conducted by wtol.com, three out of ten machines tested shortchanged the user. One instance involved a Coinstar machine at a Walmart store, where the user deposited 70 quarters but received a lower amount, even after accounting for the processing fee. Another incident occurred at a Coinstar machine in a Kroger store, where the transaction was abruptly ended with coins still left on the tray. While Coinstar asserts its commitment to accuracy and customer satisfaction, it also mentions that meeting specific requirements, such as counting coins multiple times and ensuring they are clean, is necessary for truly accurate results.
The accuracy of coin-counting machines is crucial, as an error rate of 2% or higher is generally considered unacceptable for money counters. While some machines may provide accurate results, instances of shortchanging highlight the importance of due diligence when using these machines. As a result, taking coins to a bank teller or depositing them directly at a financial institution that accepts rolled coins may be a more reliable option to ensure accurate counting and avoid unexpected fees.
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Banks' transition to online services
Canada's banking sector is witnessing a technological evolution, with banks increasingly investing in their digital infrastructure. This includes online banking platforms and payment ecosystems, as well as partnerships with fintech companies to offer tailored services and enhanced security. As of 2024, 47% of customers, mainly young adults, used online banking as their primary method, with 70% using app-based banking. This shift enables banks to deliver a more seamless, personalised experience while optimising operations and reducing costs.
The country is also in the process of implementing open banking, which allows customers to securely share financial data with third-party banking service providers and financial technology companies (fintechs). Fintech apps provide online financial products or services through financial applications, and with open banking, banks can securely share customer data with these apps without the need for screen scraping, which may pose security and privacy risks. Open banking is expected to increase consumer choices and improve financial outcomes, giving customers greater control over their financial data and access to innovative financial products and services.
The transition to online services and open banking in Canada is driven by the need to meet regulatory standards, improve customer experience, and stay competitive in a market that is increasingly influenced by fintech disruptors. This shift is also reflected in banks' commitment to sustainable finance and net-zero emissions targets.
While the digital transformation in Canada's banking sector offers many benefits, it also presents challenges, such as the need for continuous investment in digital infrastructure and the management of security risks associated with online banking.
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Retailers' stance on cash transactions
While there is no explicit mention of retailers' stance on cash transactions in Canada, it is evident that the country's retail sector is undergoing a transformation. There is a shift in consumer priorities towards home improvement and essential goods, with core retail sales showing resilience. This trend is likely to persist as inflationary pressures ease. The performance of the Canadian dollar is closely tied to retail sales dynamics, and the Bank of Canada's neutral rate stance and potential easing in 2026 could positively impact the financial sector.
Canadian retail investors are becoming more active and demanding, seeking smarter tools, inclusive products, and extended trading hours. This evolution in investor expectations challenges the financial ecosystem to adapt and keep up with the changing landscape.
Regarding cash transactions, while banks generally accept rolled coins, there have been instances of banks refusing to accept large amounts of loose change. In one case, a Montreal man was unable to deposit $800 in rolled change at his local Laurentian Bank branch due to a new policy that no longer accepted coin deposits. This incident sparked discussions about banks' responsibilities and the fees associated with coin exchange services like Coinstar.
Overall, it appears that while retailers themselves do not have a widely publicized stance on cash transactions, the broader financial ecosystem in Canada is adapting to changing investor behaviours and expectations, including the shift towards electronic transactions.
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Frequently asked questions
No, not all Canadian banks accept coins. For example, Laurentian Bank has stopped accepting rolled coins as part of its transition to a 100% Advice model.
If your bank doesn't accept coins, you can exchange them at a Coinstar machine, which can be found in some grocery stores and malls. However, these machines typically charge a fee for this service, which can be around 12% of the total amount.
While there is no legal requirement for Canadian banks to accept coins, the Royal Canadian Mint has stated that it is committed to ensuring that people who want to use coins are able to do so.
