Yes, New Year's Day is a federal bank holiday
New Year's Day — January 1st — is a federal holiday in the United States, which means banks close and do not process transactions that day. If you are waiting for a deposit, transfer, or check to clear, it will not happen on January 1st. The delay extends your timeline by one business day.
The federal government observes New Year's Day as a paid holiday for federal employees. Banks treat it the same way: they shut down, their systems do not run, and nothing moves through the banking network. This matters most if you are expecting a refund, tax payment, or other money to arrive around that date.
Some banks and credit unions may have limited hours or stay open on January 1st if it falls on a weekday, but this is rare and varies by institution. Check your bank's holiday schedule on their website or call ahead if you need to know for certain.
Key Takeaways
- Banks close on January 1st and do not process deposits, transfers, or checks that day.
- Money expected to arrive on New Year's Day will typically arrive the next business day instead.
- If January 1st falls on a weekend, banks are already closed, so the delay may not affect you.
- Some credit unions and online banks may operate on different schedules — contact your institution directly to confirm.
- Tax refunds, stimulus payments, and other government deposits follow the same rule: they do not process on federal bank holidays.
How the bank holiday affects deposits and transfers
When you are waiting for money — a tax refund, a business refund, a paycheck, or a transfer from another account — the bank holiday creates a one-day pause. If the money was supposed to land on January 1st, it lands on January 2nd instead (or January 3rd if January 2nd is a Saturday or Sunday).
This matters most for ACH transfers (the electronic transfers most common between bank accounts) and direct deposits. The sending bank and the receiving bank both need to be open and processing for the money to move. On a federal holiday, neither is working.
Checks deposited on January 1st will not clear until the next business day. Wire transfers, which move faster than ACH, may still process on some holidays depending on the bank, but this is not may provide — call your bank if you need a wire to move on or around January 1st.
Tax refunds and government payments on New Year's Day
The IRS and other federal agencies do not process refunds or payments on January 1st. If your tax refund was scheduled to arrive on New Year's Day, it will arrive on January 2nd (or later if January 2nd is a weekend). The same applies to stimulus payments, Social Security deposits, and other government money.
You can track a tax refund using the IRS "Where's My Refund?" tool on IRS.gov, which updates once per day. The tool will show you the expected deposit date. If that date is January 1st, assume it means January 2nd instead.
State tax refunds follow the same rule. If your state is processing your refund and January 1st falls during that window, the refund will not move until January 2nd. Check your state tax agency's website for the current status of your refund.
When January 1st falls on a weekend
If New Year's Day falls on a Saturday or Sunday, banks are already closed for the weekend. In this case, the federal holiday does not create an extra delay — the bank is simply closed as it would be on any weekend.
However, the federal government may observe the holiday on the nearest weekday. When January 1st is a Saturday, the federal holiday is often observed on Friday, December 31st. When January 1st is a Sunday, it is observed on Monday, January 2nd. This means banks may close on the observed date instead of the actual date, depending on their policy.
Check your bank's holiday schedule to see which date they are observing. Most banks post this information online or in their mobile app.
What to do if you are expecting money around New Year's Day
If you know money is coming around January 1st, plan for a one-day delay. Do not count on the money arriving on that exact date — assume it will arrive the next business day.
For tax refunds, check the IRS "Where's My Refund?" tool or your state tax agency's tracking system. These tools show the exact date the money will land in your account. If the date shown is January 1st, contact the agency to confirm whether that means January 1st or January 2nd.
For payroll or other recurring deposits, your employer's payroll system usually accounts for bank holidays automatically. If your paycheck is scheduled for January 1st, it will likely be processed on December 31st instead so it lands in your account on time. Ask your payroll department if you are unsure.
Differences between banks and credit unions
Most banks and credit unions follow the federal holiday schedule and close on January 1st. However, some credit unions and online banks operate on different schedules. A few may stay open or process limited transactions on federal holidays.
The safest approach is to contact your specific bank or credit union and ask whether they process transactions on January 1st. You can find this information on their website under "Holiday Hours" or by calling customer service.
Online banks and fintech companies sometimes process ACH transfers on holidays even if traditional banks do not. If you use an online bank, check their holiday schedule specifically — do not assume they follow the same rules as a brick-and-mortar bank.
Frequently Asked Questions
Will my direct deposit come through on January 1st?
No. Direct deposits do not process on federal bank holidays. If your paycheck or benefit payment is scheduled for January 1st, it will arrive on January 2nd instead (or January 3rd if January 2nd is a weekend). Your employer's payroll system usually adjusts for this automatically and processes the deposit on December 31st so it lands on time.
What if I need to withdraw money on New Year's Day?
If you have a debit card, you can withdraw money from an ATM on January 1st — ATMs run 24/7 regardless of bank holidays. If you need to visit a branch or speak to a teller, the branch will be closed. Plan ahead and withdraw cash before January 1st if you know you will need it.
Does the bank holiday affect wire transfers?
Wire transfers may or may not process on January 1st depending on your bank. Some banks process wires on federal holidays; others do not. If you need a wire to move on or around New Year's Day, call your bank ahead of time to ask whether they process wires on January 1st.
Will my tax refund be delayed if it was supposed to arrive on January 1st?
Yes, it will be delayed by one business day. If the IRS or your state tax agency scheduled your refund for January 1st, it will arrive on January 2nd instead. You can confirm the new date by checking the "Where's My Refund?" tool on IRS.gov or your state tax agency's website.
Can I deposit a check on January 1st?
You can deposit a check using your bank's mobile app or ATM on January 1st, and the deposit will be recorded that day. However, the check will not clear and the money will not be available until January 2nd at the earliest, because the receiving bank does not process checks on federal holidays.