January 1st is a federal bank holiday
Yes. January 1st — New Year's Day — is a federal bank holiday in the United States. Banks are closed, the stock market does not trade, and federal offices shut down. If you need to deposit a check, transfer money between accounts, or conduct business that requires a bank to be open, you cannot do it on January 1st itself.
The holiday applies across all 50 states. Some states observe additional holidays on top of the federal list, but New Year's Day is uniform. If January 1st falls on a weekend, the federal government observes the holiday on the nearest weekday — usually Friday if it lands on Saturday, or Monday if it lands on Sunday — though banks may handle the closure differently depending on their own policies.
Key Takeaways
- Banks, the stock market, and federal offices close on January 1st every year because it is a federal holiday.
- If January 1st falls on a Saturday or Sunday, the federal observance moves to Friday or Monday, but individual banks may close on different days.
- Transactions you initiate online or through ATMs before the holiday will process after the bank reopens, usually the next business day.
- If you need cash or must complete banking business, plan ahead by visiting your bank on December 31st or the day after January 1st.
What stays closed and what stays open on January 1st
Physical bank branches close on January 1st. You cannot walk in, speak to a teller, or access a safe deposit box. The same applies to credit unions and most financial institutions that operate brick-and-mortar locations.
What remains available: ATMs work normally, and online banking platforms stay open. You can check your balance, transfer money between your own accounts, pay bills online, and initiate wire transfers through your bank's website or app. The transactions will not process until the bank reopens, but you can set them up in advance.
The stock market (NYSE and NASDAQ) is closed, so you cannot trade stocks or mutual funds. Brokerage firms' offices are closed, though online trading platforms remain accessible — orders placed on January 1st will execute when markets reopen on January 2nd.
How to plan banking around January 1st
If you need cash, withdraw it on December 31st. ATMs will dispense money on January 1st, but if the machine runs out or malfunctions, no bank staff will be available to help until January 2nd.
If you must deposit a check, you have two options: use a mobile deposit feature through your bank's app (available on most accounts), or wait until January 2nd to deposit in person or through an ATM. Checks deposited on January 2nd are treated as if they arrived on that day, so the funds will be available according to your bank's normal deposit timeline, not the holiday.
Wire transfers and ACH transfers initiated before the holiday will process on January 2nd. If you are sending money to someone else and they need it by January 1st, you must initiate the transfer by December 31st — and even then, same-day wire transfers are not may provide on the last business day of the year because banks may have volume limits.
When January 1st falls on a weekend
If January 1st is a Saturday, the federal government observes the holiday on Friday, December 31st. If January 1st is a Sunday, the federal observance moves to Monday, January 2nd.
Banks do not always follow the federal observance schedule exactly. Some banks close on the actual date (January 1st) regardless of the day of the week, while others follow the federal rule. Check with your specific bank to confirm their closure schedule — most publish holiday hours on their website or through their app.
The stock market follows the federal observance rule strictly. If January 1st is a Sunday, the market is closed on Monday, January 2nd as well.
State-level holidays that may affect banking on or near January 1st
A few states observe additional holidays in early January that can affect banking hours. New York observes a holiday on January 2nd in some years (though this is rare). Louisiana observes January 6th (Epiphany) as a state holiday. If you live in or do business with a bank in one of these states, check whether the bank closes on those dates.
Federal banks and national banks must close on federal holidays, but state-chartered banks may have different rules. If you use a small local bank or credit union, contact them directly about their holiday schedule rather than assuming they follow the federal list.
What to do if you have an urgent banking need on January 1st
If you need to send money urgently and January 1st is a business day (Monday through Friday), call your bank on December 31st and ask whether they can process a same-day wire transfer before the holiday closes. Some banks will accommodate urgent requests if you call before a certain time on the last business day.
If you need to access funds and cannot wait, some banks partner with other banks' ATM networks. You may be able to withdraw cash from an ATM belonging to a different bank, though you may incur a fee. Check your bank's ATM network before the holiday.
For true emergencies, some credit unions and online banks operate limited services on federal holidays. If you bank with an online-only institution, contact their customer service line to ask whether they have holiday support available.
Frequently Asked Questions
Can I deposit a check on January 1st?
You cannot deposit a check in person at a bank branch on January 1st because branches are closed. However, most banks offer mobile deposit through their app, which you can use on January 1st. The check will be processed when the bank reopens on January 2nd.
Will my direct deposit arrive on January 1st if it is scheduled for that day?
No. Direct deposits scheduled for January 1st will arrive on January 2nd instead, because the bank is closed and cannot process the transaction. Employers and payroll systems know this and typically schedule deposits for the next business day when a holiday falls on payday.
Does the stock market close on January 1st?
Yes. The New York Stock Exchange and NASDAQ are both closed on January 1st. You cannot trade stocks, ETFs, or mutual funds on that day. Orders placed through your brokerage app will execute when markets reopen on January 2nd.
What if I need to pay a bill that is due on January 1st?
Pay the bill online through your bank's bill pay feature or the creditor's website before January 1st. Online payments initiated before the holiday will process on January 2nd, and most creditors build in a grace period for payments made on federal holidays. If the due date is January 1st and you have not paid yet, pay it on December 31st to avoid any late fees.
Are credit unions closed on January 1st?
Most credit unions close on January 1st because it is a federal holiday. However, some credit unions have different policies or offer limited services. Contact your credit union directly to confirm their holiday hours.