Banks close on federal holidays declared by Congress, which means you cannot visit a branch, use ATMs at that branch, or process certain transactions that day

A bank holiday is a day when banks shut their physical locations and halt most services because the federal government has declared it a national holiday. The Federal Reserve, which sets the official list, recognizes eleven federal holidays each year. On these days, your bank's branches will be closed, you cannot deposit checks in person, and wire transfers and ACH payments may not process until the next business day.

The eleven federal holidays 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), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).

Not every bank observes every holiday the same way. Some banks close on all eleven; others close on fewer. A few banks stay open on some federal holidays, particularly in states that do not recognize a specific holiday. Your own bank's holiday schedule appears on its website or in your account agreement.

Key Takeaways

  • The Federal Reserve recognizes eleven federal holidays per year, and most banks close their branches on these days.
  • Wire transfers, ACH payments, and check deposits submitted on a bank holiday will not process until the next business day.
  • ATMs and online banking usually work on bank holidays, but some banks disable certain features.
  • Your specific bank may close on fewer than eleven holidays depending on state law and company policy.
  • The holiday schedule for your bank is published on its website or in your account documents.

What happens to payments and deposits on a bank holiday

When you submit a payment or deposit on a bank holiday, the transaction enters a queue and processes the next business day. A check you deposit at an ATM on a Friday that is also a bank holiday will not clear until Monday. A wire transfer you request on that same Friday will not leave your account until Monday. This delay can matter if you are counting on funds arriving by a specific date.

Online bill payments scheduled for a bank holiday usually process on the next business day, though some banks let you schedule them in advance for the day after the holiday. ACH transfers—the system used for direct deposits, payroll, and many bill payments—also pause on bank holidays. If your paycheck is scheduled to arrive on a bank holiday, it will arrive the next business day instead.

Transactions you make before the bank holiday closes for the day will process normally. A wire transfer submitted before your bank's closing time on the day before a holiday will go through that day. Anything submitted after closing time or on the holiday itself waits until the next business day.

Which services stay open on bank holidays

ATMs and online banking platforms usually remain available on bank holidays, though some banks restrict certain functions. You can typically withdraw cash from an ATM, check your balance, and transfer money between your own accounts. However, some banks disable features like bill pay or external transfers on holidays.

Mobile banking apps work the same way—most banks keep them running, but transaction processing still follows the holiday schedule. A transfer you initiate through your app on a bank holiday will queue for the next business day.

Customer service phone lines are almost always closed on bank holidays. If you need to speak to someone, you will have to wait until the next business day. Some banks offer limited chat or email support, but response times are much slower.

How bank holidays differ from state holidays

Federal bank holidays are set by Congress and explore nationwide. State holidays are declared by individual states and do not automatically close banks. For example, some states observe Confederate Memorial Day or Cesar Chavez Day, but banks do not close on these days unless the bank's parent company chooses to.

A few states do not observe all eleven federal holidays. For instance, some states do not recognize Columbus Day as a paid holiday for state employees. Banks in those states may stay open on Columbus Day, though most major national banks close anyway.

If you live in a state that observes a holiday your bank does not, your bank will be open and you can conduct business normally. The reverse is also true: if your bank closes on a federal holiday but your state does not recognize it, the bank is still closed.

Planning around bank holidays

If you need funds to arrive by a specific date, check whether that date falls on or when ready after a bank holiday. A payment due on a Monday that is a bank holiday will not process until Tuesday. If your rent or a bill is due on that Monday, submit the payment at least two business days before the holiday.

For payroll and direct deposits, confirm with your employer whether they account for bank holidays. Most employers schedule payroll to arrive the business day before a holiday, but some do not. If your payday falls on a bank holiday, ask your payroll department when the deposit will actually hit your account.

Wire transfers are the slowest option around holidays. If you need money to move quickly and a bank holiday is coming, use an ACH transfer or schedule a payment several days in advance. Wire transfers can take an extra day or two when holidays are involved.

The Federal Reserve's role in bank holidays

The Federal Reserve publishes the official list of bank holidays each year and communicates them to all member banks. The Fed itself closes on these days, which means the payment systems it operates—like Fedwire, which handles large transfers between banks—also close. This is why your bank cannot process certain transactions on a federal holiday, even if it wanted to.

The Fed's closure cascades through the entire banking system. Correspondent banks that rely on the Fed to clear transactions also stop processing. This affects not just consumer banking but also the movement of money between institutions.

Frequently Asked Questions

Can I withdraw money from an ATM on a bank holiday?

Yes, most ATMs work on bank holidays. You can withdraw cash and check your balance. However, some banks disable certain features like transfers or bill pay on holidays, so you may not be able to do everything you normally can.

Will my paycheck arrive on a bank holiday?

No. If your payday falls on a bank holiday, your direct deposit will arrive the next business day instead. Confirm with your payroll department whether they schedule deposits for the day before the holiday or the day after.

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

You can deposit checks at an ATM on a bank holiday, and they will process the next business day. Mobile check deposit through your bank's app also works and follows the same timeline. In-person deposits at a branch are not possible because branches are closed.

Do all banks close on the same holidays?

Most major banks close on all eleven federal holidays. Some smaller banks or credit unions may close on fewer holidays depending on state law or company policy. Check your bank's website for its specific holiday schedule.

How far in advance should I submit a payment before a bank holiday?

Submit payments at least one business day before a bank holiday if the payment has a due date on or after the holiday. For wire transfers, submit them two business days in advance to account for processing delays.