Starting February 4, 2013, the Royal Canadian Mint will stop distributing the penny to banks across Canada. On that same say, businesses will start rounding prices to the nearest nickel.
Personally, I am happy Canada is getting rid of the penny. It costs 1.6 cents to make one. Eliminating the penny will save Canadians $11 million dollars a year! It’s senseless to knowingly spend more to get something less in return.
There is going to be some major confusion while we all adjust to the rounding up and rounding down to the nearest nickel. Businesses will have to do the rounding manually if they haven’t or will not be reprogramming their cash registers.
Rounding to the Nearest Nickel
So when you go get your morning coffee on Monday morning, what can you expect?
Business will be rounding to the nearest $0.05. Basically, the rule is:
- cents ending in $0.01 or $0.02 will round down
- cents ending in $0.03 or $0.04 will round up
- cents ending in $0.06 or $0.07 will round down
- cents ending in $0.08 or $0.09 will round up
If your coffee on Monday morning ends up being $2.57, now you’ll know to have $2.55 ready to go.