Bank holidays are set dates when most U.S. banks close and do not process transactions

A bank holiday is a day the federal government declares a holiday, and most banks shut their doors as a result. On these days, you cannot visit a branch, use a teller, or process certain transactions in person. However, you can still use ATMs, online banking, and mobile apps — those run 24/7 regardless of holidays.

The term "bank holiday" can mean two different things depending on context. Historically, it referred to days when the government ordered all banks to close (this happened during the Great Depression). Today, it straightforward means a federal holiday when banks choose to close, following the government's lead. The two terms are used interchangeably in modern banking.

Banks close on these days because they are federal holidays, and most bank employees are may have access to to the day off. Clearing houses — the systems that move money between banks — also shut down, which means transfers and check processing stop. This is why a deposit made on a Friday before a Monday holiday may not clear until Tuesday or Wednesday.

Key Takeaways

  • Banks close on the 10 federal holidays recognized by the U.S. government, plus any additional holidays your state or local area observes.
  • ATMs and online banking work on bank holidays, but in-person services and check clearing do not.
  • Deposits made on or just before a bank holiday may take longer to clear because the clearing house is also closed.
  • Some banks may close on additional days beyond federal holidays, so checking your bank's holiday schedule prevents missed important date.

The 10 federal holidays when banks close

The federal government recognizes 10 holidays each year. Banks are not legally required to close on all of them, but the vast majority do. These are: New Year's Day (January 1), Martin Luther King Jr. Day (third Monday in January), Presidents' Day (third Monday in February), Memorial Day (last Monday in May), Juneteenth (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 federal holiday and a day when banks close. Some years, when Christmas falls on a weekend, banks may observe the holiday on the nearest weekday instead — for example, if Christmas is on a Saturday, banks may close on Friday.

Not every bank closes on every federal holiday. Some banks, particularly those operating in states or regions with additional state holidays, may close on days beyond the 10 federal holidays. Credit unions sometimes follow different schedules than banks. The safest approach is to check your specific bank's holiday calendar on their website or by calling your branch.

Why check clearing slows down around bank holidays

When you deposit a check, it does not when ready move from your bank to the other bank. Instead, it goes through a clearing house — a central system that processes checks and transfers money between banks. These clearing houses operate on the same schedule as banks and close on federal holidays.

If you deposit a check on Thursday and Friday is a bank holiday, your bank receives the check but cannot send it to the clearing house until Saturday at the earliest. The clearing house does not process it until Monday. This means the funds may not appear in your account until Wednesday or Thursday — much longer than the usual one to two business days.

Deposits made through ATMs or mobile apps on a holiday are timestamped as received, but they still wait in the queue until the clearing house reopens. Plan ahead if you need funds from a check before a holiday weekend. Transfers between accounts at the same bank usually process faster because they do not require the clearing house.

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 or your mobile app to pay bills, set up transfers, and view statements. These services run continuously because they are automated and do not require staff or the clearing house to be open.

You cannot visit a branch to speak with a teller, deposit a check in person, or explore for a loan or credit card. You cannot use services that require a person to process your request, such as ordering a cashier's check or reporting a lost debit card to someone at the bank (though you can often report fraud through your app or an automated phone line).

Wire transfers and ACH transfers (electronic transfers between banks) may be delayed. Some banks process these on holidays, but the receiving bank may not post the funds until the next business day. If you need to move money urgently, confirm with your bank whether they process transfers on the specific holiday in question.

How to plan around bank holidays

Check your bank's website for their full holiday schedule at the start of each year. Most banks post this information prominently, and many send email reminders before major holidays. If you cannot find it online, call your branch or visit in person and ask for a printed copy.

If you need to deposit a check before a holiday, do it at least one business day before the holiday closes. For example, if Monday is a bank holiday, deposit on Friday. If you are waiting for a deposit to clear before a holiday, plan for an extra day or two of delay.

For time-sensitive transactions — paying a bill by a important date, transferring funds for a purchase — use online banking or your mobile app rather than waiting to visit a branch. These methods process when ready (or as when ready as the receiving institution allows) and do not depend on the bank being staffed.

State and local holidays that may affect your bank

Some states observe additional holidays beyond the 10 federal holidays. For example, some Southern states observe Confederate Memorial Day, and some states have their own variations on when they celebrate certain federal holidays. If your bank is located in or operates primarily in one of these states, it may close on those days too.

A few banks also close on days that are not official holidays but are significant in their region — for instance, some banks in Texas close on Texas Independence Day (March 2). This is less common, but it happens. Again, checking your specific bank's calendar is the only way to be certain.

If you bank with a national bank that has branches across multiple states, your local branch may follow a different schedule than branches in other states. Call ahead or check online before assuming your branch will be open.

Frequently Asked Questions

If a bank holiday falls on a weekend, does the bank close on Friday or Monday instead?

It depends on the bank and the specific holiday. If a holiday falls on a Saturday, most banks close on Friday. If it falls on a Sunday, most close on Monday. However, some banks do not observe a substitute day at all. Check your bank's holiday schedule to know for certain.

Can I use my debit card on a bank holiday?

Yes. You can use your debit card at any ATM or merchant on a bank holiday. The card itself works 24/7. The only limitation is that deposits and certain account services are not processed until the bank reopens.

Will a bill payment I schedule online on a bank holiday go through on time?

If you schedule a bill payment through online banking on a bank holiday, it will process on the date you selected — assuming that date is a business day. The bank's holiday does not affect scheduled payments you set up in advance. However, if you schedule a payment for the holiday itself, it will process the next business day.

Do credit unions close on the same days as banks?

Most credit unions close on federal holidays, but some have different schedules. A few credit unions stay open on certain holidays or close on different days than banks. Contact your credit union directly to confirm their holiday schedule.

What happens to automatic deposits on a bank holiday?

Automatic deposits like paychecks and government benefits are typically processed by the employer or government agency, not by your bank. These usually post to your account on the scheduled date even if it is a bank holiday. However, if the scheduled date falls on a weekend, the deposit may arrive on the next business day instead.