When banks close in May and what it means for your money

In the United States, Memorial Day is the only federal bank holiday that falls in May. It occurs on the last Monday of the month — in 2024 that was May 27, in 2025 it will be May 26. When Memorial Day falls on a Monday, banks close and do not process transactions that day. If a refund is scheduled to arrive on Memorial Day or the day after, expect a one-day delay because the banking system does not move money on federal holidays.

The delay matters most if you are watching for a tax refund, stimulus payment, or insurance payout that was supposed to land on or near Memorial Day. The IRS, state tax agencies, and most payment processors know about the holiday and account for it — but the delay still happens on your end. Your bank will not credit the deposit until the next business day after the holiday.

Some states observe additional holidays in May that are not federal holidays. For example, some Southern states observe Confederate Memorial Day on different dates. These state-only holidays do not close the federal banking system, so they do not delay federal refunds or payments. However, they may close state tax offices or state payment processing centers, which can slow down state-level refunds or payments.

Key Takeaways

  • Memorial Day, the last Monday in May, closes all federal banks and delays any refund or payment scheduled to arrive that day by one business day.
  • The IRS and state tax agencies know about Memorial Day and factor it into their refund timelines, but the delay still appears on your bank statement.
  • If your refund status shows an arrival date of Memorial Day itself, plan for the money to land on Tuesday instead.
  • State-only holidays in May do not close the federal banking system and do not delay federal refunds, though they may slow state-level payments.

How the federal banking holiday affects tax refunds

The IRS publishes refund timelines that account for federal holidays. When you check your refund status on the IRS website or through your tax software, the estimated arrival date already excludes weekends and federal holidays. If the IRS says your refund will arrive by May 27, 2025, and May 26 is Memorial Day, the actual deposit will land on May 28 or May 29 depending on your bank's processing schedule.

The delay happens because the Federal Reserve does not process Automated Clearing House (ACH) transfers — the electronic system that moves most refunds — on federal holidays. Your bank receives the refund instruction from the IRS, but cannot move the money into your account until the banking system reopens. This is a hard stop, not a processing backlog.

If you filed your return late in April or early May and your refund was already in the queue, Memorial Day can add a day to the wait. The IRS typically processes refunds within 21 days of receiving a return, but that clock does not stop for holidays. The 21-day window is a business-day window, so holidays are already built in. The delay you see is the final step: the actual deposit into your bank account.

State tax refunds and Memorial Day closures

State tax agencies handle Memorial Day differently depending on whether they observe it as a state holiday. All 50 states recognize Memorial Day as a federal holiday, so state tax offices close on that day. However, most states process refunds through the same federal banking system as the IRS, so the delay is the same: one business day.

A few states run their own payment processing systems or use state-specific payment vendors. If your state uses a state-operated system, a Memorial Day closure can add an extra day to processing time beyond the federal banking delay. Check your state tax agency's website or your refund status tracker to see whether they mention holiday delays in their timeline.

Some states also observe Confederate Memorial Day or other state-specific holidays in May on dates other than the last Monday. These closures affect state tax offices but not the federal banking system. If your state refund is processed through a state office and that office is closed on a state holiday, your refund may be delayed even though federal banks are open.

Stimulus payments and other federal payments during May holidays

Stimulus payments, Social Security payments, and other federal payments that arrive via direct deposit follow the same Memorial Day rule as tax refunds. The U.S. Treasury and the Federal Reserve do not move money on federal holidays. If a payment is scheduled for Memorial Day, it will not arrive until the next business day.

The Treasury Department publishes payment schedules that account for holidays. If you receive Social Security, Supplemental Security Income (SSI), or Veterans benefits, your payment date may shift if it falls on Memorial Day. The agency will not pay you on the holiday itself; the payment moves to the next business day. Your payment amount does not change, and you do not receive a makeup payment — the date simply shifts.

Insurance refunds and business refunds that are processed through the banking system face the same delay. If an insurance company or business sends you a refund via ACH transfer and that transfer is scheduled for Memorial Day, your bank will not receive it until the next day the banking system is open.

What to do if your refund was supposed to arrive on or near Memorial Day

Check your refund status using the official tracker for your refund type. For federal tax refunds, use the IRS "Where's My Refund?" tool on irs.gov. For state refunds, visit your state tax agency's website and look for a refund status tracker. For stimulus payments or other federal payments, check the Treasury Department's website or your bank account directly.

If the status shows an arrival date of Memorial Day or the day after, assume a one-business-day delay. Your bank may not show the deposit until the day after the holiday, even if the status tracker shows an earlier date. This is normal and does not mean the refund is lost or delayed beyond the holiday closure.

If your refund was supposed to arrive before Memorial Day and it has not shown up, contact the issuing agency directly. For the IRS, call 1-800-829-1040. For state refunds, contact your state tax agency. For other federal payments, contact the agency that issued the payment. Have your Social Security number, filing status, and expected refund amount ready.

How to plan around May bank holidays when you need the money

If you are counting on a refund to arrive by a specific date and that date is near Memorial Day, build in an extra day or two. Do not assume the refund will land on the date shown in the status tracker if that date is Memorial Day itself or the day immediately after. Plan as if the money will arrive one business day later than stated.

If you have bills due right after Memorial Day, contact your creditors or service providers before the holiday and let them know your refund is delayed by the bank holiday. Many creditors will accept a late payment if you notify them in advance and show proof that the refund is on the way. This is especially true for mortgage payments, rent, and utility bills.

If you filed your tax return expecting a refund and you need the money urgently, consider whether you can adjust your withholding or estimated tax payments for the rest of the year instead of waiting for a large refund. This gives you access to the money throughout the year rather than in one lump sum after a holiday delay.

Frequently Asked Questions

Will my bank charge me a fee if my refund arrives late because of Memorial Day?

No. Banks do not charge fees for refunds delayed by federal holidays. The delay is a system-wide closure, not a processing error or account issue. If your bank charged you a fee related to a holiday-delayed refund, contact the bank and ask them to reverse it.

Can I request that my refund be sent before Memorial Day to avoid the delay?

You cannot control the exact date the IRS or other agencies send your refund. You can only control when you file your return. Filing earlier in the tax season may result in an earlier refund, but you cannot may provide it will arrive before a specific holiday. The agency processes returns in the order received, and refunds are sent in batches.

Does Memorial Day affect direct deposit of paychecks?

Yes, in the same way it affects refunds. If your employer processes payroll on Memorial Day, your direct deposit will not arrive until the next business day. Most employers know about the holiday and process payroll the day before or after to avoid the delay, but some do not. Check with your payroll department if you are unsure.

What if I live in a state that does not observe Memorial Day?

All 50 states and U.S. territories observe Memorial Day as a federal holiday. The federal banking system closes nationwide on Memorial Day regardless of state law. Your refund will be delayed by the federal holiday even if your state does not recognize it for other purposes.

How long does a Memorial Day delay usually last?

One business day. If Memorial Day falls on a Monday, the banking system reopens on Tuesday and processes refunds that day. You should see the deposit in your account by Wednesday at the latest, depending on your bank's processing schedule. Some banks deposit funds the same day they receive them; others take an additional day.