Banks close tomorrow because it is a federal holiday, and the Federal Reserve does not process payments on those days

When a federal holiday falls on a weekday, most banks shut their branches and do not process transfers, deposits, or withdrawals. The closure is not optional — it is tied to the Federal Reserve's operating calendar. The Fed itself closes, which means the systems that move money between banks stop running. Your bank cannot clear a check, process an ACH transfer, or update your balance without access to those systems.

The specific holiday depends on the date. Common closures happen on New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. Some banks also close on Columbus Day and Veterans Day, though this varies by institution. If you are unsure which holiday is tomorrow, check your bank's website or call the branch — they list closures in the hours section.

The closure affects more than just branch visits. Automated systems like ATMs usually stay open, but online transfers and mobile deposits may process more slowly. A deposit you make on a holiday may not clear until the next business day, and sometimes not until the day after that.

Key Takeaways

  • Federal holidays force banks to close because the Federal Reserve itself stops processing payments that day.
  • ATMs and online banking platforms usually remain available, but transfers and deposits will not clear until the next business day.
  • Checks deposited on a holiday may take two to three business days to clear instead of the usual one.
  • If you need cash or have an urgent transaction, plan ahead by visiting your bank the day before the holiday.

Which holidays shut down the banking system

The Federal Reserve publishes an official holiday calendar each year. The closures 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), Thanksgiving (fourth Thursday in November), and Christmas (December 25).

When a holiday falls on a Saturday or Sunday, the Fed typically observes it on the nearest weekday. If Christmas falls on a Saturday, for example, banks close on Friday. If New Year's Day falls on a Sunday, they close on Monday. This means you may see a closure on a day that is not the actual holiday.

Some banks also close on Columbus Day (second Monday in October) and Veterans Day (November 11), but this is not universal. Credit unions sometimes follow different schedules. Check your specific bank's website to confirm which days they observe.

How a holiday closure affects your transactions

Transactions you initiate on a holiday do not move through the banking system until the next business day. If you write a check on a holiday and deposit it, the clearing process does not start until the following day. A standard check takes one to three business days to clear under normal circumstances; on a holiday, add an extra day to that timeline.

ACH transfers — the electronic transfers you set up through online banking — also pause. If you schedule a transfer to post on a holiday, it will not actually move until the next business day. Wire transfers work the same way. Money you send on a holiday sits in a queue until the Fed's systems come back online.

ATM withdrawals and deposits are different. Most ATMs run on the bank's own network and do not depend on the Fed. You can withdraw cash from an ATM on a holiday. Deposits made at an ATM on a holiday may not show in your account until the next business day, and the funds may not be available to spend until the day after that.

Planning ahead to avoid holiday delays

If you know a holiday is coming and you need to move money or deposit a check, do it the business day before. A deposit made on a Friday before a Monday holiday will clear by Tuesday or Wednesday. A deposit made on the Monday holiday itself will not clear until Wednesday or Thursday.

If you need cash, withdraw it before the holiday. ATMs work on holidays, but if the machine runs out of cash or malfunctions, you have no branch to visit. Withdrawing a day early removes that risk.

For bill payments, schedule them to post at least two business days before they are due. If a payment is due on a Monday and a Friday is a holiday, schedule it for the Wednesday before. This gives the system time to process without the holiday delay.

What stays open on federal holidays

ATMs stay open and function normally on federal holidays. You can withdraw cash, check your balance, and deposit checks at most ATMs without interruption. The ATM network does not depend on the Federal Reserve's payment systems.

Online banking platforms and mobile apps stay open. You can log in, check your balance, and view transactions. However, any transfers or payments you initiate will not process until the next business day. The system accepts your request but does not execute it until the Fed is back online.

Customer service phone lines are usually closed on federal holidays, though some banks maintain a limited support line for emergencies. If you have a question about a transaction or need help, you may have to wait until the next business day to reach someone.

Why the Federal Reserve controls bank hours

Banks do not set their own holiday schedules. The Federal Reserve, which is the central bank of the United States, publishes the official closure calendar. Every bank in the country must follow it because the Fed operates the systems that clear payments between institutions.

When you deposit a check at Bank A and it is drawn on Bank B, Bank A sends it to the Fed, which verifies the funds and transfers money from Bank B's account to Bank A's account. This clearing process cannot happen without the Fed. On a day the Fed is closed, no clearing happens, so banks cannot process deposits or transfers that depend on it.

Congress designates which days are federal holidays, and the Fed observes all of them. Individual banks cannot choose to stay open on a holiday because doing so would not help — their transfers would still be stuck in a queue until the Fed reopened.

Frequently Asked Questions

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

Yes. ATMs operate independently of the Federal Reserve's payment systems and stay open on holidays. You can withdraw cash, deposit checks, and check your balance. A check deposited at an ATM on a holiday will not clear until the next business day, but the transaction itself will go through.

If I transfer money on a holiday, when does it arrive?

It arrives the next business day. The transfer request is accepted when ready, but the actual movement of money does not happen until the Fed's systems are back online. If you transfer on a Monday holiday, the money moves on Tuesday.

Do credit unions close on the same holidays as banks?

Most credit unions follow the same Federal Reserve holiday calendar, but some observe additional holidays or have different schedules. Check your credit union's website or call ahead to confirm which days it is closed.

What happens if I need to pay a bill on a holiday?

Pay it the day before. If the bill is due on a Monday and Friday is a holiday, submit the payment on Thursday. This ensures it clears before the due date. If you miss the important date, contact the creditor to explain the holiday delay — many will waive late fees in this situation.

Are wire transfers available on federal holidays?

No. Wire transfers require the Federal Reserve's systems to be online. Wires initiated on a holiday will not process until the next business day. If you need to send money urgently, send it the day before the holiday.