Yes, Christmas Day is a federal bank holiday in the United States
Christmas Day (December 25) is a federal bank holiday, which means most banks, credit unions, and the Federal Reserve close for the day. If you need to move money, deposit a check, or visit a branch, you cannot do it on Christmas Day itself.
The closure affects more than just physical branches. ACH transfers, wire transfers, and other electronic payment systems that run through the Federal Reserve also stop processing on Christmas Day. Money you send on December 24 will not move until December 26 at the earliest, depending on the type of transfer and your bank's internal schedule.
Some financial institutions stay open on Christmas Eve (December 24) and reopen on December 26 (the day after Christmas). A few banks in areas where Christmas is not widely observed may operate normally, but this is rare. Your own bank's holiday schedule determines when your specific accounts are accessible.
Key Takeaways
- Banks and credit unions close on Christmas Day, and the Federal Reserve does not process payments that day.
- ACH transfers and wire transfers sent on December 24 will not clear until December 26 or later.
- Most banks reopen on December 26, though some may remain closed if December 26 falls on a weekend.
- Check your bank's specific holiday schedule before Christmas, because closure dates vary by institution.
- ATM withdrawals and online banking typically work on Christmas Day, even though branches are closed.
How the Federal Reserve closure affects your money movement
The Federal Reserve, which operates the payment systems that move money between banks, closes on Christmas Day. This means no ACH transfers (the system used for direct deposits, bill payments, and most routine transfers) process on December 25. Any transfer you initiate on December 24 enters a queue and processes on December 26 at the earliest.
Wire transfers follow the same rule. If you send a wire on December 24, it will not leave your account until December 26. International wires may take even longer because they depend on correspondent banks in other countries, which may have their own holiday schedules.
Checks deposited on December 24 or 25 will not clear until after the holiday. The bank receives the check but cannot send it through the clearing system until December 26. If you need funds from a check deposit before Christmas, you must deposit it by December 23.
What stays open on Christmas Day
ATMs remain operational on Christmas Day at most banks. You can withdraw cash, check your balance, and transfer money between your own accounts using the ATM network, which runs independently of the Federal Reserve's payment systems.
Online and mobile banking platforms also stay available. You can log in, view transactions, and initiate transfers through your bank's app or website. The transfer will not actually process until December 26, but you can schedule it in advance.
Debit card transactions at stores and restaurants process normally on Christmas Day. The merchant's bank and your bank settle the transaction after the holiday, but you can use your card when ready.
When banks reopen after Christmas
Most banks reopen on December 26 (the day after Christmas). However, if December 26 falls on a Saturday or Sunday, the bank may remain closed and reopen on Monday, December 28. Check your bank's website or call ahead to confirm their specific reopening date.
When the bank reopens, it processes all the transfers, deposits, and payments that accumulated during the closure. This means December 26 can be a heavy processing day, and transfers initiated on December 24 may not clear until December 27 or 28.
If you need money to move before Christmas, initiate the transfer by December 23. This gives the system time to process before the holiday closure begins.
Planning ahead for Christmas payments and deposits
If you receive a paycheck or expect a deposit around Christmas, check with your employer or the paying institution about the exact deposit date. Many employers move payroll deposits earlier in the week to avoid holiday delays. A paycheck scheduled for December 25 may be deposited on December 24 instead.
For bill payments, use your bank's bill pay system and schedule the payment for December 23 or earlier. If you wait until December 24, the payment may not reach the biller until after Christmas, which could result in a late fee depending on the biller's grace period.
If you are expecting a check in the mail, do not count on depositing it before Christmas. Mail delivery may be delayed on or around the holiday, and even if you receive it on December 24, the check will not clear until after the holiday.
How Christmas Day differs from other federal holidays
Christmas Day is treated the same as other federal bank holidays like Thanksgiving, New Year's Day, and Independence Day. Banks close, the Federal Reserve stops processing, and payment systems pause. The difference is that Christmas falls on the same date every year, so you can plan around it more easily than holidays that move (like Thanksgiving).
Some banks may have different closure policies for regional holidays or observances that are not federal holidays. For example, a bank in a state that observes a state-specific holiday may close on that day even though it is not a federal holiday. Check your bank's holiday schedule to see what applies to your accounts.
What to do if you need money on Christmas Day
Use an ATM to withdraw cash before the holiday. This is the most reliable way to have money available on Christmas Day itself. Withdraw enough to cover any spending you plan to do on December 25 and 26.
If you need to send money to someone on Christmas Day, use a third-party payment service like Venmo, PayPal, or Square Cash. These services are not run by the Federal Reserve and may process transfers on holidays, though the receiving bank may not credit the funds until after the holiday. Check the service's holiday schedule before relying on it.
If you have an emergency that requires bank information on Christmas Day, call your bank's customer service line. Most banks maintain a phone line for urgent issues even on holidays, though they cannot process transfers or access branch services.
Frequently Asked Questions
Can I use my debit card on Christmas Day?
Yes. Debit card transactions process normally on Christmas Day at stores, restaurants, and online retailers. The transaction settles after the holiday, but you can use your card when ready. Your bank's ATM network also works on Christmas Day.
Will my direct deposit arrive on Christmas if it is scheduled for that day?
Probably not. Most employers move payroll deposits to December 24 or earlier to avoid the holiday. Check with your employer about their specific schedule. If the deposit is scheduled for December 25, it will likely process on December 26 instead.
What if I need to deposit a check on Christmas Day?
You cannot deposit a check at a branch on Christmas Day because banks are closed. You can use mobile deposit (your bank's app) to photograph and deposit the check, but it will not clear until December 26 or later. The bank receives the image on Christmas Day but cannot process it through the clearing system until after the holiday.
Do credit unions close on Christmas Day?
Most credit unions close on Christmas Day, just like banks. However, some credit unions have different holiday schedules. Check your credit union's website or call to confirm whether they are open on December 25.
If Christmas falls on a weekend, is the bank holiday on Friday or Monday?
When Christmas falls on a Saturday, the federal holiday is observed on Friday, December 24. When it falls on a Sunday, the holiday is observed on Monday, December 26. Your bank will close on the observed date, not the actual calendar date. Check your bank's schedule to confirm.