A bank holiday is a day when most banks close and do not process transactions, even though it is not a weekend

A bank holiday is a weekday that the federal government declares a holiday. On that day, banks shut their doors, the stock market does not open, and the Federal Reserve does not process payments between banks. If you try to deposit a check or transfer money on a bank holiday, the transaction will not go through until the next business day.

The key difference between a bank holiday and a regular weekend is that a bank holiday can fall on any day of the week. When it does, it disrupts the normal flow of banking. A check you deposit on a bank holiday will be processed the next day the bank is open, not the next calendar day. A bill payment you schedule for a bank holiday will move to the following business day automatically.

Bank holidays exist because federal law requires banks to close on days the government designates as national holidays. The Federal Reserve, which oversees the banking system, publishes a list of these days each year. Most private banks follow the same schedule, though a few may have different rules.

Key Takeaways

  • Banks close on federal bank holidays and do not process deposits, withdrawals, or transfers until the next business day.
  • Bank holidays can fall on any weekday, which is why a Monday or Friday closure affects your banking differently than a weekend.
  • Checks deposited on a bank holiday are not processed until the next day the bank is open, not the next calendar day.
  • The Federal Reserve publishes the official list of bank holidays each year, and most banks follow the same schedule.
  • Automatic bill payments and transfers scheduled for a bank holiday will process on the next business day instead.

How bank holidays affect your deposits and withdrawals

If you deposit a check on a bank holiday, it sits in the system until the next business day. The bank does not receive it, scan it, or send it to the other bank for clearing. This means if you deposit on a Monday bank holiday, your check does not move until Tuesday. If you need the money urgently, depositing on a bank holiday costs you a full day.

Withdrawals work the same way. If you use an ATM on a bank holiday, you can still get cash because ATMs run 24 hours. But if you need to withdraw money from a teller or make a large withdrawal that requires approval, you will have to wait until the bank reopens. Some banks let you schedule withdrawals in advance, but the actual transaction does not happen until a business day.

Wire transfers and electronic payments also pause on bank holidays. If you initiate a wire transfer on a bank holiday, it will not leave your account until the next business day. The receiving bank will not receive it until the day after that. This is why financial advisors suggest planning ahead if you need money to move by a specific date.

Which days are bank holidays

The Federal Reserve recognizes ten federal holidays each year. They are: New Year's Day (January 1), Birthday of Martin Luther King, Jr. (third Monday in January), 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), and Thanksgiving Day (fourth Thursday in November).

Christmas Day (December 25) is also a bank holiday. If any of these dates fall on a Saturday, the Federal Reserve observes the holiday on Friday. If a holiday falls on a Sunday, it is observed on Monday. This is why you might see a bank closed on a Friday or Monday near a holiday weekend.

Not every state or local government observes all ten holidays the same way. Some states add their own holidays or observe them on different dates. However, for federal banking purposes, the Federal Reserve's list is what matters. Your bank will close on the days the Federal Reserve designates, regardless of what your state does.

Planning around bank holidays

If you know a bank holiday is coming, deposit checks a day or two early. If you need money by a specific date, do not wait until the day before a bank holiday to move it. Schedule transfers and bill payments at least one business day before a holiday to may support they process on time.

If you have automatic payments set up, check your account the day after a bank holiday to confirm they went through. Most banks move scheduled transactions to the next business day automatically, but it is worth verifying. If a payment was supposed to go out on a holiday and did not, contact your bank to confirm when it will process.

For time-sensitive transactions like mortgage payments or rent, plan even further ahead. Some landlords and lenders charge late fees if a payment arrives after the due date, even if the delay was caused by a bank holiday. Sending payment two or three days early removes this risk.

How bank holidays differ from weekends

A weekend closure is predictable: banks close on Saturday and Sunday every week. A bank holiday closure is less predictable because it can fall on any weekday. This matters because a three-day weekend caused by a bank holiday on Friday or Monday affects your banking differently than a regular weekend.

If a bank holiday falls on a Friday, your bank is closed Friday, Saturday, and Sunday. Deposits made on Thursday will not process until Monday. If a bank holiday falls on a Monday, your bank is closed Saturday, Sunday, and Monday. Deposits made on Friday will not process until Tuesday. This extra day can matter if you are waiting for funds.

Some banks offer limited services on weekends through ATMs and mobile apps, but they do not on bank holidays. You cannot call customer service, speak to a teller, or process certain transactions. The entire banking system pauses, not just your local branch.

What still works on a bank holiday

ATMs remain open 24 hours on bank holidays. You can withdraw cash, check your balance, and transfer money between your own accounts using an ATM. Mobile banking apps also work normally. You can check your balance, view transactions, and set up future payments on your phone or computer.

Some online banks and credit unions may have different schedules than traditional banks. A few remain open on certain bank holidays or process transactions differently. Check your bank's website or call ahead if you are unsure whether your institution closes on a specific holiday.

Credit card payments can usually be made online or by phone on a bank holiday, and they will be recorded as received on that day. However, the actual processing and posting to your account may not happen until the next business day. The payment is timestamped when you submit it, so you will not be late even if the bank does not process it until later.

Frequently Asked Questions

Will my automatic bill payment go through on a bank holiday?

Most banks automatically move bill payments scheduled for a bank holiday to the next business day. However, you should confirm this with your bank. Check your account the day after the holiday to verify the payment processed. If it did not, contact your bank when ready to reschedule it.

Can I deposit a check using my phone on a bank holiday?

Yes. Mobile check deposit works on bank holidays because you are submitting the image to your bank's system, not physically depositing it. The check will be processed the next business day, but you can submit it anytime. The timestamp shows when you submitted it, not when the bank processes it.

What if I need cash on a bank holiday?

ATMs work on bank holidays and are available 24 hours. You can withdraw cash, check your balance, and transfer money between your own accounts. If you need a large withdrawal or one that requires teller approval, you will have to wait until the bank reopens.

Do all banks close on the same bank holidays?

Most banks follow the Federal Reserve's schedule and close on the same ten holidays plus Christmas. However, some credit unions and online banks may have different schedules. Check your bank's website or call to confirm whether it is closed on a specific holiday.

If a bank holiday falls on a weekend, is the bank still closed?

If a bank holiday falls on a Saturday, the Federal Reserve observes it on Friday, and banks close Friday instead. If it falls on a Sunday, banks close on Monday. This is why you might see your bank closed on a Friday or Monday near a holiday weekend.