What You Should Know About Coin Currency
The money that people use to buy things is usually a nation’s currency, which comes in the form of bills or coins. Most people have a container somewhere in their house or car that’s slowly filling with pennies, nickels, dimes and quarters they’ve gotten in change. This change can be exchanged at a bank or store that offers coin-counting services, like Coinstar, which allows you to turn your spare change into gift cards. You can also donate your coins to charity.
You can learn a lot about history by studying coins. Many of the decisions made about a coin’s content, value and design were related to political, economic or social events in a country at a particular time. Learning about these details can make coins come alive for a collector or investor.
Some coins, such as those made of precious metals like gold or silver, have more value than their face values and are used primarily by investors. These are called bullion coins and include the British sovereign minted in Britain, American Eagle minted by the United States and Krugerrand minted in South Africa. Coins with a more valuable face value are generally considered collector’s items and have a much higher price tag than bullion coins.
Each year, the Federal Reserve Board determines how much new currency and coin it needs. The Bureau of Engraving and Printing then prints and produces the needed amount. The Reserve Banks then distribute the coin to depository institutions, including commercial banks, credit unions, savings and loans and some federally chartered trust companies. This process includes distributing both current and uncirculated (used) coin to meet demand.
A lot of people have saved their pennies, nickels, dimes and even quarters in the hopes that they’ll eventually be worth something. However, the vast majority of these coins will never be worth anything other than their face value. If you’re interested in saving these coins, consider using them to save for a specific purchase that you want to make, such as Christmas gifts or a down payment on a home. This kind of savings is known as a sinking fund and can help you build up a sizable nest egg over the years.
Many retailers will not take large amounts of small coins in a transaction, which can cause a delay at the cash register line. They also may not have enough employees to spend the time counting and sorting all those little pieces of change. If a retailer will not accept coins, you can try taking them to a self-service coin machine in a supermarket. These machines will often accept more than just pennies and nickels, and they can sort them faster than a cashier could.
Most big banks have phased out their coin-counting services in recent years, but regional banks and credit unions that still offer these services will often do so at no charge to their customers. You can also find inexpensive coin wrappers in a variety of sizes at dollar and office-supply stores, as well as online. Rolling your coins before exchanging or spending them makes it easier and less frustrating to count them.