A bank holiday is a day when most banks close and do not process transactions

A bank holiday is a day set by the federal government when banks, credit unions, and the Federal Reserve do not conduct regular business. On these days, you cannot visit a branch in person, and the bank does not process deposits, withdrawals, or transfers. Automated teller machines (ATMs) still work, and online banking platforms remain open, but any transaction you submit will not be processed until the next business day.

Bank holidays exist so that bank employees get time off and so that the Federal Reserve can handle large-scale financial operations without the volume of everyday transactions. There are 10 federal bank holidays each year in the United States. Some are observed on the same date every year (like Independence Day on July 4), while others move to a specific day of the week (like Memorial Day, which falls on the last Monday of May).

Key Takeaways

  • Banks close on federal bank holidays and do not process transactions, though ATMs and online banking remain available.
  • The 10 federal bank holidays include New Year's Day, Independence Day, Thanksgiving, Christmas, and others that rotate to specific weekdays.
  • Deposits made on a bank holiday will not post to your account until the next business day, which can affect when you can withdraw the money.
  • If a bank holiday falls on a weekend, most banks observe the holiday on the nearest weekday instead.
  • Some banks and credit unions may have their own additional holidays beyond the federal list.

The 10 federal bank holidays and when they occur

The federal government designates 10 days each year as bank holidays. New Year's Day (January 1), Independence Day (July 4), and Christmas Day (December 25) fall on the same date every year. The other seven move to a specific weekday: Martin Luther King Jr. Day (third Monday in January), Presidents' Day (third Monday in February), Memorial Day (last Monday in May), Juneteenth (June 19, or the nearest weekday if it falls on a weekend), Labor Day (first Monday in September), Columbus Day (second Monday in October), and Veterans Day (November 11, or the nearest weekday if it falls on a weekend).

When a bank holiday falls on a Saturday, most banks observe the holiday on Friday instead. When it falls on a Sunday, they observe it on Monday. This means you may see your bank close on a different day than the actual holiday date. Your bank's website or a call to your local branch will show you which days your specific bank is closed.

How bank holidays affect deposits and withdrawals

If you deposit a check or transfer money on a bank holiday, the transaction will not post until the next business day. This matters most if you are counting on that money being available quickly. For example, if you deposit a check on a Friday that is a bank holiday, the deposit will not post until Monday, and you may not be able to withdraw the funds until Tuesday or later (depending on your bank's hold policies).

Withdrawals from ATMs work normally on bank holidays because ATMs are connected to a separate system. However, if you need to speak to a banker, deposit cash at a teller window, or resolve an account problem, you will need to wait until the bank reopens. If a holiday falls on a weekday and you need banking services, plan ahead by visiting your branch the day before.

What you can and cannot do on a bank holiday

You can use ATMs to withdraw cash, check your balance, and transfer money between your own accounts. You can also log into online banking to view your account, set up bill payments, and transfer money to other banks (though the transfer will not process until the next business day). You cannot visit a branch, speak to a banker in person, deposit checks at a teller window, or conduct any transaction that requires a bank employee.

If you use mobile banking, you can submit transactions the same way you would on any other day, but they will queue up and process once the bank reopens. Some banks allow you to deposit checks by taking a photo with your phone, and these mobile deposits will also process on the next business day.

Planning around bank holidays when you need money

If you know a bank holiday is coming and you need cash or need to make a deposit, plan your banking for the business day before. Withdraw extra cash from an ATM if you think you will need it over the holiday weekend. If you are expecting a check, deposit it a day or two early so the hold period does not extend into the holiday.

If you receive a paycheck by direct deposit, it will post on your regular payday even if that day is a bank holiday, because direct deposit is an automated process. However, if your employer processes payroll on the holiday itself, the deposit may arrive a day late. Check with your employer if you are unsure about the timing.

Bank holidays versus state holidays and company holidays

Federal bank holidays explore to all banks across the country. Some states also observe their own state holidays, and some banks may close on those days as well. For example, some banks in Texas close on Texas Independence Day (March 2), and some banks in Hawaii close on additional Hawaiian holidays. Your specific bank may also close on days that are not federal holidays if the bank's owners choose to do so.

Company holidays (days when your employer closes) are separate from bank holidays. Your workplace may be closed on a day when banks are open, or vice versa. If you work in banking, you will have bank holidays off, but if you work elsewhere, your company's holiday schedule may be different.

Frequently Asked Questions

Can I use my debit card on a bank holiday?

Yes. Your debit card works at stores, restaurants, and online merchants on bank holidays. You can also use it at ATMs to withdraw cash. The only thing you cannot do is visit your bank branch or conduct transactions that require a bank employee.

If I deposit a check the day before a bank holiday, when will it be available?

That depends on your bank's hold policy, not the holiday itself. Most banks hold checks for one to two business days. If you deposit on a Friday before a Monday holiday, the check may be available Tuesday or Wednesday. Ask your bank about its specific hold times.

Do credit unions close on bank holidays?

Most credit unions close on the same federal bank holidays as banks. Some credit unions may have different hours or additional closures. Check your credit union's website or call ahead to confirm which days it will be closed.

What if I need to access my money during a bank holiday?

Use an ATM to withdraw cash or check your balance. If you need to speak to someone at your bank, you will have to wait until the next business day. Some banks offer phone support on holidays, but branch services are not available.

Do online banks close on bank holidays?

Online banks do not have physical branches, so they do not "close" the way traditional banks do. However, their processing systems may still pause on federal bank holidays, so deposits and transfers submitted on a holiday will process the next business day.