A bank holiday is a day when banks and most federal offices are closed, which delays any money movement — including refunds, tax credits, and government payments.
When a bank holiday falls on the day your refund was supposed to arrive, the deposit does not happen that day. The money stays in the sending account until the next business day. If your refund was scheduled to land on a Monday that is a federal holiday, it lands on Tuesday instead. This matters most if you were counting on the money by a specific date or if you are watching your account closely to confirm a deposit arrived.
Bank holidays are not the same as state holidays. A state holiday — like a state fair day or a state-specific observance — does not stop federal banking. Only federal bank holidays pause the banking system nationwide. The Federal Reserve and the U.S. Treasury do not process payments on these days, and most banks do not clear deposits or transfers.
Key Takeaways
- Bank holidays delay any refund or government payment scheduled to arrive that day by pushing it to the next business day.
- The ten federal bank holidays each year are New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, and Thanksgiving and Christmas.
- A refund scheduled for a Friday before a three-day weekend will not arrive until Tuesday if Monday is a bank holiday.
- You can check the Federal Reserve's calendar to see which days are bank holidays in the current year.
The ten federal bank holidays and when they occur
The U.S. Treasury and Federal Reserve recognize ten federal bank holidays each year. Most fall on the same date every year, but some move to a specific Monday or Thursday to create a long weekend.
| Holiday | When It Falls |
|---|---|
| New Year's Day | January 1 |
| Martin Luther King Jr. Day | Third Monday in January |
| Presidents' Day | Third Monday in February |
| Memorial Day | Last Monday in May |
| Juneteenth National Independence Day | June 19 |
| Independence Day | July 4 |
| Labor Day | First Monday in September |
| Columbus Day | Second Monday in October |
| Veterans Day | November 11 |
| Thanksgiving and Christmas | Fourth Thursday in November and December 25 |
When a bank holiday falls on a Saturday, most banks observe it on Friday. When it falls on a Sunday, they observe it on Monday. This means a refund scheduled for that Friday or Monday will be delayed.
How a bank holiday affects your refund timeline
The IRS, state tax agencies, and other federal offices that send refunds work on a schedule. They initiate deposits on certain days of the week, and the Federal Reserve processes them the next business day. If that next business day is a bank holiday, the deposit does not clear until the day after the holiday ends.
For example, if the IRS sends your tax refund on a Thursday before Memorial Day weekend, it would normally arrive on Friday. But if Friday is not a bank holiday and Monday is, your bank receives the deposit on Friday as scheduled. However, if the IRS sends it on a Friday before a Monday bank holiday, the deposit does not arrive until Tuesday.
The delay is usually one business day, but a three-day weekend holiday can create a two-day wait. If a bank holiday falls on a Monday and you were expecting a deposit on that Monday, add two days to your timeline — the money arrives on Wednesday instead.
Why banks close on federal holidays
Banks close on federal bank holidays because the Federal Reserve — the central banking system that clears all electronic transfers — is closed. Without the Federal Reserve processing payments, individual banks cannot move money between accounts or clear deposits from other banks. It is not a choice each bank makes; it is a requirement of how the banking system operates.
State banks, credit unions, and online banks all follow the same federal schedule. Some banks may stay open to handle customer service or in-person transactions, but they cannot process deposits, transfers, or withdrawals that move money through the Federal Reserve system.
How to plan around bank holidays when waiting for a refund
If you know a bank holiday is coming and you are waiting for a refund, add one business day to your expected arrival date. Check the Federal Reserve's holiday calendar — it is published each year and lists all ten holidays plus any special closures.
When you track your refund status through the IRS, your state tax agency, or another government office, the status message should tell you the expected deposit date. If that date falls on or the day after a bank holiday, assume the deposit will arrive the next business day instead.
If you are waiting for an insurance refund or a business refund, the same rule applies. The sending company initiates the transfer on their schedule, but the Federal Reserve's closure delays when your bank receives it. You can call your bank to confirm whether a deposit has been initiated but not yet cleared — this tells you whether the delay is a bank holiday or something else.
What to do if your refund does not arrive when expected
If your refund was supposed to arrive on a bank holiday or the day after one, wait until the next business day to contact anyone. The delay is normal and automatic.
If the expected arrival date has passed and it is now a business day with no deposit in your account, check the status of your refund through the original sender. For tax refunds, use the IRS "Where's My Refund?" tool or your state's tax refund tracker. For insurance or business refunds, contact the company directly with your refund confirmation number or claim number.
If the status still shows "approved" or "processing" rather than "sent" or "deposited," the refund has not been initiated yet. A bank holiday may have delayed the processing step itself, not just the deposit. Ask the sender for a new expected date and whether the holiday affected their processing schedule.
Frequently Asked Questions
Does a bank holiday delay my refund if it was supposed to arrive on a Friday?
Only if the following Monday is a bank holiday. If Friday is a normal business day, your refund arrives on Friday as scheduled. The bank holiday only delays deposits that would otherwise clear on that holiday or the next day.
Can I pick up my refund in person at the bank on a bank holiday?
Most banks are closed to the public on federal bank holidays, even if they have staff working. You cannot withdraw money or access your account in person. You will need to wait until the next business day.
Do online banks close on bank holidays?
Online banks do not have physical locations, but they still cannot process deposits or transfers on federal bank holidays because the Federal Reserve is closed. Your deposit will be delayed the same way it would be at a traditional bank.
What if a bank holiday falls on a weekend?
If a bank holiday falls on Saturday, banks observe it on Friday. If it falls on Sunday, they observe it on Monday. Your refund timeline shifts to account for the observed day, not the actual calendar date.
How do I know which day the bank holiday is observed?
The Federal Reserve publishes its holiday calendar each year on its website. You can also check your bank's website or call them to confirm which days they will be closed. Most banks post their holiday schedule in January for the entire year.