New Year's Eve is not a federal bank holiday
New Year's Eve (December 31st) is not recognized as an official federal bank holiday. Banks, federal offices, and most government agencies remain open on December 31st. The actual federal holiday is New Year's Day, which falls on January 1st — the day after.
This distinction matters if you're expecting a refund, payment, or government transfer around the end of the year. A deposit scheduled for December 31st will process normally. A deposit scheduled for January 1st will be delayed because federal offices and many banks are closed.
Some private employers and businesses close on December 31st as a matter of company policy, but that is not the same as a federal holiday. If your employer closes, you may not receive a paycheck or direct deposit on that day, but the banking system itself is operating.
Key Takeaways
- New Year's Eve is not a federal bank holiday, so banks and government offices are open on December 31st.
- New Year's Day (January 1st) is the federal holiday, and banks and federal offices close on that day.
- A refund or payment scheduled to arrive on December 31st will process on that date; one scheduled for January 1st will arrive on January 2nd.
- Some private companies close on December 31st by choice, but this does not affect the federal banking system.
How December 31st affects refund timing
If you're waiting for a tax refund, stimulus payment, or insurance refund timed to arrive around the end of the year, the date matters. The IRS, state tax agencies, and federal payment systems all operate on December 31st. A direct deposit scheduled for that date will land in your account on December 31st.
However, if a payment is scheduled for January 1st, it will not process until January 2nd because the Federal Reserve and most banks are closed on New Year's Day. This one-day delay is common when refunds are processed in late December and the system automatically schedules them for the next business day.
If you're tracking a refund and the status shows a deposit date of January 1st, contact the issuing agency (IRS, your state tax department, or your insurance company) to ask whether the deposit will actually land on January 2nd. Some agencies update their systems to show January 2nd; others show January 1st but process on January 2nd.
What happens to payments scheduled around New Year's
The Federal Reserve operates on a holiday schedule. December 31st is a normal business day for the Fed, but January 1st is not. This means:
- Payments scheduled for December 31st process on December 31st.
- Payments scheduled for January 1st process on January 2nd.
- Payments scheduled for January 2nd process on January 2nd (assuming it is a weekday).
If you receive a direct deposit from your employer, a government agency, or a refund processor, the timing depends on when the originating institution submits the payment to the banking system. Most employers and agencies submit payroll and refunds the day before the intended deposit date. If they submit on December 30th for a December 31st deposit, it will arrive on December 31st. If they submit on December 31st for a January 1st deposit, it will arrive on January 2nd.
Some refund tracking systems show a "processing date" and a separate "deposit date." The processing date is when the agency sends the money; the deposit date is when your bank receives it. These are not always the same day, especially around holidays.
State and local offices on December 31st
State tax agencies, state unemployment offices, and local government agencies have their own holiday schedules. Most states treat December 31st as a normal business day, but some close early or close entirely. If you need to contact a state agency on December 31st — to ask about a refund status, for example — call in the morning to confirm they are open.
A few states close both December 31st and January 1st. If you live in one of these states and need to reach your state tax department or state unemployment office, plan to call on December 30th or January 2nd instead.
Local housing authorities, county assessor offices, and city tax departments vary widely. If you need to reach a local office around New Year's, check their website for holiday hours before you call.
Banks and credit unions on December 31st
Most banks and credit unions are open on December 31st, though some close early (at 2 or 3 p.m. instead of their normal closing time). A few banks close entirely on December 31st, but this is uncommon and usually announced in advance.
If you need to visit a branch on December 31st, call ahead or check the bank's website. Online banking, ATMs, and mobile apps operate normally on December 31st regardless of branch hours.
Direct deposits and wire transfers process on December 31st as long as the originating institution submits them before the Federal Reserve's cutoff time (usually 6 p.m. Eastern). If a payment is submitted after the cutoff, it will not process until January 2nd.
What to do if your refund is delayed past New Year's
If you were expecting a refund to arrive by December 31st and it has not, check the status using the tracking tool provided by the issuing agency. The IRS has the "Where's My Refund?" tool on its website. Most state tax departments have similar tools. Insurance companies and business refund processors usually provide a tracking number or online status page.
The status page will show you the current processing stage and, if available, an expected deposit date. If the expected date has passed and the refund has not arrived, contact the agency directly. Have your refund tracking number, Social Security number or tax ID, and the amount of the refund ready when you call.
If the status shows a deposit date of January 1st, wait until January 3rd to contact the agency. Deposits scheduled for January 1st will arrive on January 2nd, and it may take until January 3rd for your bank to post the deposit to your account.
Frequently Asked Questions
Will my tax refund arrive on December 31st if the IRS says it will?
Yes, if the IRS status page shows a deposit date of December 31st, the refund will arrive on that date. The IRS processes refunds on December 31st. However, if the status shows January 1st, the refund will arrive on January 2nd because banks are closed on New Year's Day.
Is December 31st a holiday for the Federal Reserve?
No. The Federal Reserve operates on December 31st. January 1st is the federal holiday. This is why payments scheduled for December 31st process on that day, but payments scheduled for January 1st are delayed until January 2nd.
Can I deposit a check on December 31st?
Yes, if your bank is open. You can deposit a check in person at a branch, through an ATM, or via mobile deposit on December 31st. The check will be processed on December 31st if you deposit it before the bank's cutoff time (usually 2 to 6 p.m., depending on the bank).
What if my employer's payroll system shows a deposit date of January 1st?
The deposit will arrive on January 2nd. Payroll systems often show the intended deposit date, but the Federal Reserve does not process payments on January 1st. Contact your payroll or HR department if you want to confirm the actual deposit date.
Do I need to do anything special to receive a refund around New Year's?
No. Refunds process on their normal schedule around New Year's. The only thing to watch is the deposit date shown in the tracking system. If it shows January 1st, expect the refund on January 2nd instead.