A bank holiday is a day when most banks close and do not process transactions, even though other businesses may stay open.

Bank holidays are set by the federal government and observed nationwide. On these days, your bank will not be staffed, you cannot visit a branch in person, and the bank's computer systems do not process deposits, withdrawals, or transfers. ATMs usually still work because they run on a separate system, but any transaction you make at an ATM will not post to your account until the next business day.

The confusion happens because bank holidays are different from federal holidays. A federal holiday like Thanksgiving means government offices close and many people have the day off work. A bank holiday means the same thing for banks specifically — the institution shuts down. Some federal holidays are also bank holidays, but not all of them. For example, Veterans Day is a federal holiday, but most banks stay open on Veterans Day. Presidents Day is both a federal holiday and a bank holiday, so banks close.

The Federal Reserve, which is the central banking system of the United States, publishes the official list of bank holidays each year. Your bank follows this list. If you need to know whether your specific bank is open on a particular day, call the branch or check their website, because some banks may close on additional days beyond the federal bank holidays.

Key Takeaways

  • Bank holidays are days when banks close their branches and do not process transactions, though ATMs usually remain available.
  • The Federal Reserve sets the official bank holidays, which are observed by banks across the country.
  • Not every federal holiday is a bank holiday — Veterans Day is federal but banks stay open, while Presidents Day closes banks.
  • Deposits and transfers made on a bank holiday will not post until the next business day, even if you use an ATM.
  • Some banks may observe additional holidays beyond the federal list, so checking your bank's calendar is the safest way to know.

Why banks close on certain days

Banks close on bank holidays for the same reason government offices do: to give employees a day off and to align with the nation's calendar. The Federal Reserve, which manages the banking system, decides which days banks must close. These are typically days tied to national observances like Independence Day or Christmas.

When a bank holiday falls on a weekend, the bank usually closes on the nearest weekday instead. For example, if Christmas falls on a Saturday, banks close on Friday. This is called an observed holiday. Your bank's website or a phone call to your branch will tell you which day they are actually closed.

What you can and cannot do on a bank holiday

You cannot visit a bank branch, speak to a banker, or process transactions that require a person to handle them. This includes opening a new account, getting a cashier's check, or speaking to a loan officer. You also cannot make deposits at a teller window or withdraw cash from the counter.

You can use ATMs to withdraw cash or check your balance. You can also use online banking to view your account, transfer money between your own accounts, or set up bill payments — but these transactions will not actually process until the next business day. If you send a wire transfer or mobile payment on a bank holiday, it will sit in a queue and move the following day.

If you deposit a check at an ATM on a bank holiday, the check will not be processed until the next business day. The same is true for mobile check deposits through your bank's app. The deposit will show as pending in your account, but the money will not be available until the bank processes it.

The difference between bank holidays and business days

A business day is any day the bank is open and processing transactions. Bank holidays are not business days. When your bank says something will happen "within two business days," they mean two days when the bank is actually open — not counting weekends or bank holidays.

This matters for time-sensitive transactions. If you submit a wire transfer on a Friday before a three-day weekend that includes a bank holiday, the wire will not go out until Tuesday. The bank counts Friday as day one, Monday does not count because it is a bank holiday, and Tuesday is day two. Your recipient may not see the money until Wednesday.

How to plan around bank holidays

The easiest way to avoid surprises is to check your bank's holiday calendar at the start of the year. Most banks publish this on their website or will mail it to you. Write down the dates when your bank will be closed so you know when to plan large deposits or time-sensitive payments.

If you need cash over a bank holiday weekend, withdraw it before the holiday. If you need to make a payment by a certain date, submit it at least one business day before the important date to account for processing time. If you are waiting for a deposit to post — such as a paycheck or a transfer from another bank — assume it will take an extra day if a bank holiday falls during the processing window.

For online bill payments, most banks let you schedule payments in advance. You can set up a payment to go out on the first business day after a bank holiday, which removes the guesswork. Check your bank's bill pay system to see if this option is available.

Which days are bank holidays

The Federal Reserve recognizes the following bank holidays: New Year's Day, Birthday of Martin Luther King Jr., Presidents Day, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Some banks may also close on additional days that are not on the federal list. For example, some regional banks close on state holidays. A few banks close on Good Friday even though it is not a federal bank holiday. Always check your specific bank's calendar rather than assuming the federal list is complete.

What happens to direct deposits and automatic payments on bank holidays

Direct deposits that are scheduled to arrive on a bank holiday will usually arrive on the next business day instead. If your paycheck normally deposits on Friday and Friday is a bank holiday, the deposit will come on Monday. Your employer sends the deposit on schedule, but the bank cannot process it until it reopens.

Automatic bill payments that are set to go out on a bank holiday will also process on the next business day. If you have a payment scheduled for a bank holiday, the payment will leave your account the day after the bank reopens. This can affect your cash flow, so plan accordingly if you are living paycheck to paycheck.

Some banks let you see when automatic payments will actually post by looking at your scheduled transactions in online banking. This is worth checking before a long holiday weekend so you know when money will actually leave your account.

Frequently Asked Questions

Can I use my debit card on a bank holiday?

Yes. Your debit card works at stores, restaurants, and other merchants on bank holidays because those businesses are open. The transaction will post to your account the next business day. ATMs also work on bank holidays, though any cash withdrawal will not show as posted until the next day.

Will my paycheck deposit late if it arrives on a bank holiday?

Yes, usually by one day. If your paycheck is scheduled to deposit on a bank holiday, it will deposit on the next business day instead. Your employer sends it on time, but the bank cannot process it until it reopens. Check with your employer or your bank if you are unsure which day your next deposit will actually arrive.

What if I need to deposit a check before a bank holiday?

You can deposit checks at an ATM or through your bank's mobile app on a bank holiday, but they will not be processed until the next business day. If you need the money to be available before the holiday, deposit it at least one business day before the bank closes. If you deposit it on the holiday itself, assume the funds will not be available until after the bank reopens.

Do credit card companies observe bank holidays?

Credit card companies are not the same as banks, though they may be owned by a bank. Some credit card companies stay open on days when banks close. If you need to make a payment, check your credit card company's website or call the number on the back of your card to see if they are open on that day.

Can I transfer money between banks on a bank holiday?

You can initiate a transfer on a bank holiday through online banking or your app, but it will not actually process until the next business day. Both banks involved must be open for the transfer to complete. If either bank is closed, the transfer will wait until both are open again.