What Banking Holidays Are and Why They Matter
Banking holidays are days when most U.S. banks close and do not process transactions. On these days, you cannot deposit checks, withdraw cash at a teller window, or conduct business at a physical branch. The federal government designates these holidays, and banks are required to observe them. If you are waiting for a refund deposit, a banking holiday can delay when the money appears in your account by one business day.
Banking holidays are different from public holidays. Some public holidays — like Veterans Day or Presidents Day — are not banking holidays. The reverse is also true: some banking holidays have no public holiday status. The distinction matters because a refund that arrives on a banking holiday will not post to your account until the next business day.
Key Takeaways
- The Federal Reserve recognizes ten banking holidays per year, and banks must close on these days.
- Refunds scheduled to arrive on a banking holiday will post the next business day instead.
- Direct deposits and ACH transfers do not process on banking holidays, even if your bank's website says the transfer is "pending."
- Checks deposited on a banking holiday are not processed until the day after the holiday.
- Not all public holidays are banking holidays, and not all banking holidays are public holidays.
The Ten Federal Banking Holidays
The Federal Reserve recognizes these ten banking holidays each year:
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Birthday of Martin Luther King, Jr. | Third Monday in January |
| Presidents Day (Washington's Birthday) | 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 Day | Fourth Thursday in November |
| Christmas Day | December 25 |
When a banking holiday falls on a Saturday, most banks close on Friday instead. When it falls on a Sunday, most banks close on Monday. This means the actual closure day can shift depending on the day of the week. For example, if Independence Day (July 4) falls on a Saturday, banks typically close on Friday, July 3.
How Banking Holidays Affect Refunds and Deposits
If a refund is scheduled to arrive on a banking holiday, the deposit will not post until the next business day. This applies to tax refunds, stimulus payments, insurance refunds, and any other direct deposit. The money is not lost — it simply waits in the processing system until the bank reopens.
The same rule applies to checks. If you deposit a check on a banking holiday (through an ATM or mobile deposit), the bank will not process it until the next business day. The check will show as "pending" in your account, but the funds will not be available until after the holiday ends.
ACH transfers and wire transfers also do not process on banking holidays. If you initiated a transfer that was supposed to land on a banking holiday, it will arrive the next business day instead. Your bank's website may show the transfer as "in progress" or "pending," but no actual movement of funds occurs until the bank reopens.
When Your Bank Might Close on Other Days
Individual banks can choose to close on additional days beyond the ten federal banking holidays. Some banks close on Christmas Eve, the day after Thanksgiving, or other observances. A few banks close on state holidays that are not federal banking holidays.
To learn about your specific bank has extra closures, check your bank's website or call the branch directly. Most banks post their holiday schedule in November or December for the following year. You can also ask a teller or customer service representative whether your branch will be open on a specific date.
How to Plan Around Banking Holidays
If you are waiting for a refund and a banking holiday is coming up, assume the deposit will arrive the business day after the holiday, not on the holiday itself. This is especially important if you need the money by a certain date. For example, if a tax refund is scheduled to arrive on Memorial Day (a banking holiday), plan for the money to show up on Tuesday instead of Monday.
For checks you deposit, add an extra day to your timeline if the deposit date falls on or near a banking holiday. A check deposited on Friday before a Monday banking holiday will not process until Tuesday. Mobile deposits and ATM deposits follow the same rule.
If you are sending a payment to avoid a late fee, do not assume it will post on the day you send it if a banking holiday is in the way. Wire transfers and ACH payments do not process on banking holidays, so your payment will arrive the next business day. If a deadline falls on a banking holiday, send your payment the business day before.
Frequently Asked Questions
Does my bank have to close on all ten federal banking holidays?
Yes. Federal law requires banks to close on the ten designated banking holidays. However, individual banks may also close on additional days. Some banks close on Christmas Eve or other observances that are not federal banking holidays.
If a banking holiday falls on a weekend, when does my bank close?
If a banking holiday falls on Saturday, most banks close on Friday. If it falls on Sunday, most banks close on Monday. This is called "observing" the holiday on the nearest business day. Check your bank's specific policy to be certain.
Will my direct deposit arrive late if it is scheduled for a banking holiday?
Yes. Direct deposits scheduled for a banking holiday will post the next business day instead. The money is not lost — it simply waits in the processing system until the bank reopens. Your employer or the agency sending the refund cannot force the deposit to arrive on the holiday itself.
Can I use an ATM on a banking holiday?
Yes. ATMs operate 24/7 on banking holidays, so you can withdraw cash, check your balance, and deposit checks through the ATM. However, checks deposited on a banking holiday will not be processed until the next business day, even though the ATM accepts them.
What if I need to deposit a check before a banking holiday?
Deposit it the business day before the holiday. If you deposit it on the holiday itself (through an ATM or mobile deposit), the bank will not process it until the day after the holiday ends. Mobile deposits and ATM deposits follow the same processing timeline as in-person deposits.