A bank holiday is a day when most banks shut their doors and do not process transactions, even though it is not a weekend
A bank holiday is a weekday that the federal government or a state declares a holiday, and banks treat it the same way they treat Saturday and Sunday — they close their branches and do not clear checks, process transfers, or post deposits that day. The term is mostly American; other countries use "bank holiday" to mean something slightly different. In the United States, when a federal holiday falls on a weekday, the banking system stops moving money.
This matters to you if you are waiting for a refund, a payment, or a transfer. Money that would normally arrive on a bank holiday arrives the next business day instead. A tax refund scheduled to land on Presidents' Day will land on Tuesday. A check you deposit on Thanksgiving will not clear until Friday. If you are tracking a refund status and the date it shows is a bank holiday, add one day to your timeline.
Key Takeaways
- Bank holidays are federal or state holidays that fall on weekdays, and banks close completely on those days — no deposits clear, no transfers post, no checks process.
- The Federal Reserve and most commercial banks follow the same federal holiday calendar, so closures are consistent across the country on days like Independence Day, Thanksgiving, and Christmas.
- If a refund or payment is scheduled to arrive on a bank holiday, it will arrive on the next business day instead — usually the day after the holiday.
- Some states observe additional holidays beyond the federal list, and a few banks honor state holidays even if the federal government does not, so closures can vary slightly by location.
- You can find the full federal holiday calendar on the Office of Personnel Management website, which lists every day banks will be closed for the year.
The federal holidays when banks close
The Federal Reserve publishes an official list of holidays when the banking system shuts down. These are the days when the Fed itself closes, and most commercial banks follow the same schedule. The list includes New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas.
Not every bank closes on every federal holiday — some banks stay open on Columbus Day or Veterans Day, for example. But the major holidays (New Year's, Thanksgiving, Christmas, Independence Day, Memorial Day, and Labor Day) are nearly universal. If you are waiting for money and the date falls on one of these six, assume the bank is closed and your transaction will not process that day.
The Office of Personnel Management maintains the official federal holiday calendar each year. You can check it to see which days fall on weekdays and which fall on weekends. If a holiday lands on a Saturday, banks are already closed, so there is no extra delay. If it lands on a Sunday, the federal government usually observes it on Monday, and banks close Monday instead.
How bank holidays affect refunds and payments
When you are tracking a tax refund, insurance refund, or any other payment, the timeline the agency gives you counts only business days — days when banks are open. If the IRS says your refund will arrive in 21 days and day 15 is Thanksgiving, that day does not count. Your refund arrives 22 calendar days later, not 21.
The same rule applies to direct deposits, ACH transfers, and wire transfers. A payment scheduled to hit your account on a bank holiday will not arrive until the next day the bank is open. If you deposit a check on a Friday before a three-day weekend, it will not clear until Tuesday. If you deposit it on a Monday that is a federal holiday, it will not clear until Wednesday.
Some refund tracking systems show you the expected arrival date and account for bank holidays automatically. Others show a date without noting whether it is a holiday. If the date you see is a Monday and you know Monday is Presidents' Day, add one day to your timeline. If you are unsure whether a specific date is a bank holiday, check the Office of Personnel Management calendar or ask your bank directly.
State holidays and regional variations
Some states observe holidays that the federal government does not, or observe them on different dates. For example, some Southern states observe Confederate Memorial Day, and a few states have their own holidays for local figures or events. If a state holiday falls on a weekday, state-chartered banks in that state may close, even if national banks stay open.
This creates a small complication: a payment might clear at a national bank on a day when a state bank is closed. In practice, this rarely delays your refund because most refunds and payments go through the Federal Reserve's system, which does not close for state holidays. But if you bank with a small state-chartered bank and a state holiday is coming, it is worth calling to ask whether they will be closed and whether it will affect your deposit or transfer.
What happens to checks and deposits on a bank holiday
If you deposit a check on a bank holiday, the bank does not process it that day. The deposit sits in a queue until the next business day. The check then goes through the normal clearing process, which usually takes one to three business days depending on the bank and the amount. So a check deposited on Thanksgiving will not start clearing until Friday, and may not be available in your account until the following Monday or Tuesday.
Mobile deposits and ATM deposits work the same way. If you use your phone to deposit a check on a bank holiday, the bank time-stamps it as received on that holiday, but does not actually process it until the next business day. The clearing timeline starts from the day after the holiday, not from the holiday itself.
Transfers you initiate on a bank holiday also wait until the next business day. If you set up an ACH transfer on Christmas, it will not leave your account until December 26. If you wire money on a bank holiday, the wire will not send until the next day the bank is open. This is why it is important to plan ahead if you need money to arrive by a specific date near a holiday.
How to plan around bank holidays when waiting for refunds
If you are waiting for a refund and a bank holiday is coming up within your expected arrival window, add one day to your timeline. If the IRS says your refund should arrive by April 20 and April 19 is a Friday before a three-day weekend, your refund will likely arrive on Tuesday, April 22 instead.
When you are tracking a refund online, the status page usually shows an expected date. If that date is a bank holiday, the actual arrival will be the next business day. Some tracking systems note this automatically; others do not. If you are unsure, contact the agency or your bank to confirm.
For insurance refunds and business refunds, the same logic applies. The timeline the company gives you assumes business days only. If a holiday falls within that window, add one day. If you are waiting for a check to arrive and a holiday is coming, it is worth calling the company to ask whether they have already mailed it or whether they will hold it until after the holiday.
Where to find the bank holiday calendar
The Office of Personnel Management publishes the federal holiday calendar every year. You can find it on their website by searching "federal holidays" — it lists every day the federal government observes as a holiday and notes which day of the week each falls on. This is the same calendar the Federal Reserve uses to determine when banks close.
Your own bank may also publish a holiday schedule on their website or in their mobile app. Some banks note which services will be unavailable on specific holidays — for example, some banks stay open for limited hours on certain holidays or keep ATMs and online banking running even when branches are closed. Checking your bank's specific schedule is useful if you need to make a transaction near a holiday.
Frequently Asked Questions
If a holiday falls on a Saturday, do banks close on Friday instead?
No. If a holiday lands on a Saturday, banks are already closed for the weekend, so there is no additional closure. If a holiday lands on a Sunday, the federal government observes it on Monday, and banks close Monday instead. You can check the Office of Personnel Management calendar to see which day each holiday falls on each year.
Will my direct deposit arrive on a bank holiday?
No. Direct deposits scheduled for a bank holiday will arrive on the next business day. If your paycheck is set to deposit on Thanksgiving, it will arrive on Friday instead. The same applies to any automatic transfer or payment scheduled for a bank holiday.
Do all banks close on the same holidays?
Most banks close on the major federal holidays like Christmas, Thanksgiving, Independence Day, and New Year's Day. Some banks stay open on smaller holidays like Columbus Day or Veterans Day. If you are unsure whether your bank will be open on a specific day, call them or check their website.
How long does a check take to clear if I deposit it right before a bank holiday?
A check deposited the day before a bank holiday will not start clearing until the day after the holiday. The normal clearing time (usually one to three business days) then begins. So a check deposited on Wednesday before Thanksgiving will start clearing on Friday and may not be available until the following Tuesday or Wednesday.
Can I wire money on a bank holiday?
You can initiate a wire on a bank holiday through online banking or your bank's app, but the bank will not actually send it until the next business day. If you need money to arrive by a specific date, do not wait until a bank holiday to send it — send it the day before instead.