Banks close on Memorial Day, so refunds and payments won't process that day
Memorial Day in the United States falls on the last Monday of May. Banks, credit unions, and the Federal Reserve do not operate on this day, which means no electronic transfers, no check clearing, and no account deposits happen. If you are waiting for a tax refund, stimulus payment, insurance payout, or business reimbursement, a Memorial Day closure can delay the money by one business day.
The specific impact depends on when the payment was supposed to arrive. If your refund was scheduled to land on Memorial Day itself, it will arrive on Tuesday instead. If it was scheduled for the Friday before, it arrives as planned. If you are tracking a payment and the expected date falls on Memorial Day, add one day to your timeline.
State and local government offices also close on Memorial Day, though some state tax agencies and unemployment offices maintain limited phone lines. The IRS, Social Security Administration, and other federal agencies do not process refunds or payments on this day.
Key Takeaways
- Memorial Day is the last Monday of May, and all U.S. banks close that day, halting refund deposits and check clearing.
- If your refund was scheduled to arrive on Memorial Day, expect it the next business day (Tuesday).
- The IRS, state tax agencies, and federal payment systems do not process or deliver money on Memorial Day.
- If you need to contact your bank or a government agency about a refund, wait until Tuesday if the holiday falls during your expected delivery window.
How Memorial Day affects federal tax refunds
The IRS processes tax refunds year-round, but the agency does not work on Memorial Day. If your refund was scheduled to be deposited into your bank account on Memorial Day, the IRS will send it the next business day instead. The delay is usually one day, though it can stretch longer if Memorial Day falls on a Monday and the following Tuesday is also a holiday (rare, but possible in some state systems).
Direct deposit is the fastest method and the most affected by bank holidays. If you chose direct deposit when you filed your return, the IRS sends the money electronically to your bank. The bank receives the instruction but cannot process it on a holiday. Check the IRS "Where's My Refund?" tool to see your expected deposit date. If that date is Memorial Day, plan for the money to arrive Tuesday.
If you requested a paper check instead of direct deposit, the delay is less predictable. The IRS mails checks from processing centers, and the postal service also observes Memorial Day. A check scheduled to be mailed on or around Memorial Day may arrive a few days later than originally estimated.
State tax refunds and Memorial Day closures
State tax agencies close on Memorial Day just as federal offices do. If you filed a state tax return and are waiting for a refund, the same one-day delay applies. Some states process refunds faster than the IRS, so your state refund may arrive before your federal one—but both will be held up if the delivery date falls on Memorial Day.
A few states run their own payment systems separate from the federal banking network. Even so, they cannot deposit money into your bank account on a holiday. Call your state tax agency's refund hotline if you need to know the exact expected date. Many state agencies post refund status online, which is faster than calling during the holiday week when phone lines are busy.
Stimulus payments and other federal transfers on Memorial Day
Stimulus payments, Social Security deposits, unemployment benefits, and other federal payments follow the same rule: they do not process on Memorial Day. If your payment was scheduled for that Monday, it will arrive on Tuesday. The delay is usually one day, but if Tuesday is also a holiday in your state or if your bank has its own closure, the wait can extend.
Direct deposit is the standard method for federal payments. If you receive Social Security, unemployment, or other regular federal benefits by direct deposit, check your bank account on Tuesday if the payment was due on Memorial Day. If the money does not appear by Wednesday, contact the agency that sends the payment—Social Security Administration, Department of Labor, or your state unemployment office—to confirm the deposit was sent.
Insurance refunds and business refunds during bank holidays
Insurance companies and businesses also respect bank holidays. If an insurance company or retailer promised to refund your money by Memorial Day, the refund will not process that day. The company may send the refund instruction on Friday before the holiday, but your bank will not receive and deposit it until Tuesday.
Some businesses and insurers use third-party payment processors that operate independently of traditional banks. These services sometimes process payments on holidays, but it is not may provide. If you are waiting for a business or insurance refund and the expected date is Memorial Day, contact the company to ask whether they use a holiday-independent processor. If they use standard bank transfers, expect the money on Tuesday.
What to do if your refund does not arrive after Memorial Day
If your refund was supposed to arrive on or shortly after Memorial Day and it has not shown up by Wednesday, take these steps. First, check your bank account to make sure the deposit did not arrive under a different name or reference number. Some refunds appear with a generic description like "IRS TREAS 310" or "STATE TAX REFUND" rather than the agency's full name.
Second, check the tracking tool for the agency that sent the refund. The IRS "Where's My Refund?" tool, your state tax agency's refund tracker, and the Social Security Administration's "my Social Security" portal all show the current status. If the tool says the refund was sent, but your bank has not received it, contact your bank's customer service line. Provide the expected deposit date and the reference number from the tracking tool.
If the tracking tool shows the refund has not been sent yet, contact the agency directly. The IRS has a phone line for refund questions (the number is on your tax return paperwork). State tax agencies have their own hotlines. Federal agencies like Social Security and the Department of Labor have dedicated customer service numbers. Have your Social Security number, tax ID, or account number ready when you call.
Planning ahead for refunds around Memorial Day
If you know your refund is coming in late May, plan for a one-day delay if the expected date lands on Memorial Day. This matters if you need the money for a bill or expense due shortly after. File your return early enough that the refund arrives before Memorial Day, or request a later delivery date if the system allows it (most do not, but some state programs do).
For recurring payments like Social Security or unemployment benefits, Memorial Day delays are routine and expected. Your bank and the paying agency both know the holiday is coming. If you rely on these payments to cover bills, plan your budget assuming the money will arrive one day late during May.
If you are sending a payment to someone else—a refund to a customer, a reimbursement to an employee—and you want it to arrive before Memorial Day, send it by Friday of the week before. Do not wait until Monday morning of the holiday week.
Frequently Asked Questions
Will my refund arrive on Tuesday if Memorial Day is Monday?
Usually yes. If your bank and the paying agency both observe Memorial Day, the refund will process the next business day, which is Tuesday. However, if your bank has its own additional closure or if the payment processor is outside the traditional banking system, the timing may vary. Check with your bank if the money does not arrive by Wednesday.
Can I call the IRS or my state tax agency on Memorial Day to ask about my refund?
No. The IRS, state tax agencies, and most federal offices are closed on Memorial Day. Phone lines do not operate, and online tools may have limited updates. Call on Tuesday or later in the week when offices reopen.
What if my refund was supposed to arrive before Memorial Day but hasn't shown up yet?
Check the tracking tool for the agency that sent it. If the tool says the refund was sent, contact your bank to confirm they received the deposit instruction. If the tool says it has not been sent yet, contact the agency directly with your reference number and expected date.
Do credit unions close on Memorial Day?
Most credit unions close on Memorial Day, just like banks. However, some credit unions that are part of shared branching networks or have 24-hour ATM access may allow limited transactions. Call your credit union to confirm their holiday hours if you need to access your account on or around Memorial Day.
If I get paid every other week, will my paycheck be delayed if payday falls on Memorial Day?
Your employer will likely process payroll on Friday before the holiday or on Tuesday after, depending on their payroll schedule. Ask your HR or payroll department when payday deposits will occur if your regular payday falls on Memorial Day. Direct deposit will not process on the holiday itself, so the money will arrive the next business day at the earliest.