January 1st is a federal bank holiday, but your bank may not close
Yes, January 1st — New Year's Day — is a federal holiday in the United States. The federal government, post offices, and most courts close. However, whether your specific bank closes depends on the bank itself, not on federal law.
Large national banks like Bank of America, Chase, Wells Fargo, and Citibank typically close on January 1st. Credit unions and smaller regional banks usually close as well. But some banks, particularly online-only banks and certain credit unions, stay open on federal holidays because they operate 24/7 or do not maintain physical branches.
If you need to visit a branch, call your bank directly or check their website before January 1st. Do not assume closure based on the federal holiday alone.
Key Takeaways
- January 1st is a federal holiday, which means federal offices, courts, and the post office close, but individual banks decide their own hours.
- Most major national banks and credit unions close on New Year's Day, though online banks and some smaller institutions may remain open.
- ATMs and mobile banking apps work on federal holidays regardless of branch closures, so you can still access your money.
- If you need to deposit a check or conduct business that requires a teller, plan ahead and confirm your bank's New Year's Day hours before the holiday.
- Checks and transfers submitted on January 1st may not process until the next business day, even if your bank is open.
How bank closures affect deposits and transfers on January 1st
Even if your bank is open on January 1st, deposits and transfers may not process the same day. Federal Reserve operations slow on holidays, which means the clearing system that moves money between banks runs on a delayed schedule.
A check you deposit on January 1st will not clear until at least January 2nd, and possibly later depending on the check's origin bank. Wire transfers and ACH transfers (like direct deposits) submitted on January 1st typically process the next business day. If January 1st falls on a Tuesday through Friday, the delay is usually one day. If it falls on a Monday, you may wait until Wednesday for processing.
If you need funds to arrive by a specific date, deposit or transfer them before December 31st.
ATMs and online banking work on January 1st
Your ATM card works on January 1st regardless of whether your bank's branches are closed. You can withdraw cash, check your balance, and transfer money between your own accounts using the ATM or your bank's mobile app.
Online banking platforms stay active on federal holidays. You can log in, view transactions, and set up transfers or bill payments. However, those transactions may not process until the next business day if the Federal Reserve is closed.
If you are locked out of your account or need immediate help from a person, call your bank's customer service line. Most banks staff phone support on federal holidays, though wait times are often longer.
What happens to payroll and direct deposits on January 1st
If your employer's payroll date falls on January 1st, your direct deposit will not hit your account that day. Employers typically submit payroll the business day before a federal holiday so deposits arrive on the last business day before the holiday.
For example, if January 1st is a Tuesday, your employer likely processes payroll on December 31st (Monday), and your deposit arrives on December 31st or January 1st depending on your bank's processing speed. If January 1st is a Monday, payroll usually processes on Friday, December 29th, and deposits arrive by December 30th or 31st.
Check your company's payroll schedule or ask your HR department when to expect your deposit if it normally falls near January 1st.
Checks and bill payments submitted on January 1st
If you mail a check or submit a bill payment on January 1st, it will not be processed that day. The post office is closed, so mailed checks sit until January 2nd at the earliest. Online bill payments submitted through your bank on January 1st enter the queue but do not process until the next business day.
To avoid late fees, submit bill payments by December 31st if they are due around January 1st. If you are paying by mail, send the check several days early to account for mail delivery time plus the holiday delay.
State and local government offices on January 1st
State and local government offices close on January 1st in all 50 states. This includes DMV offices, county courthouses, tax offices, and city halls. If you need to conduct business with a government agency, do so on December 31st or wait until January 2nd.
Some states and cities have different holiday schedules for other observances, but January 1st is universal. Federal offices like Social Security Administration field offices and IRS walk-in centers also close on January 1st.
Planning ahead for January 1st banking needs
If you know you will need cash or access to banking services around January 1st, withdraw cash on December 31st. If you need to make a deposit, do it before the holiday. If you have bills due around January 1st, pay them by December 30th to avoid processing delays.
Check your bank's specific holiday hours in advance. Many banks post their New Year's Day schedule in December. If your bank is closed and you need emergency access to funds, look for a branch of a partner bank or ATM network that may be open, or use your mobile app to transfer money to another account you can access.
Frequently Asked Questions
Can I use my debit card on January 1st if my bank is closed?
Yes. Your debit card works at ATMs and merchants on January 1st regardless of branch closures. You can withdraw cash, make purchases, and check your balance. Only services that require a teller or bank staff — like depositing a check or opening an account — are unavailable.
Will my paycheck deposit on January 1st if it is a holiday?
Probably not on January 1st itself. Most employers submit payroll the business day before a federal holiday so deposits arrive by the last business day before the holiday. Ask your HR department when to expect your deposit if your normal payday falls on or near January 1st.
Do online banks close on January 1st?
Online banks do not have physical branches, so they do not "close" in the traditional sense. You can access your account, make transfers, and withdraw cash from partner ATMs on January 1st. However, processing of transfers and deposits may be delayed because the Federal Reserve is closed.
What if I need to deposit a check on January 1st?
If your bank is open, you can deposit the check, but it will not clear until at least January 2nd. If your bank is closed, use mobile check deposit through your bank's app if available. Otherwise, wait until January 2nd to deposit it in person or through the app.
Do credit unions close on January 1st?
Most credit unions close on January 1st, but some stay open. Call your credit union or check their website to confirm their New Year's Day hours. Credit unions that are closed follow the same processing delays as banks — deposits and transfers submitted on January 1st process the next business day.