Bank holidays stop most payment processing, but the timing depends on which country you're in and which holiday it is

In the United States, the Federal Reserve observes ten holidays each year when banks close and the payment system slows down. On these days, the banking infrastructure that moves money between accounts — the systems that process transfers, clear checks, and settle transactions — either shuts down or runs on a skeleton crew. A transfer you send on a bank holiday will not move until the next business day.

The ten federal holidays when U.S. banks close are: New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, and Thanksgiving and the day after. Christmas is also a bank holiday, though some banks close on December 26 instead if Christmas falls on a weekend.

Some banks also observe additional holidays depending on their state or region. A few states recognize Robert E. Lee's birthday or other state-specific observances, and some banks close on Good Friday even though it is not a federal holiday. Your bank's website or customer service line will list which days it closes.

Key Takeaways

  • The Federal Reserve closes on ten federal holidays per year, which stops most electronic transfers and check clearing until the next business day.
  • Transfers sent on a bank holiday will not process until the following business day, even if you send them before midnight.
  • Some banks close on additional days beyond the federal holidays, so checking your bank's holiday schedule is the only way to know for certain.
  • Weekends and bank holidays both delay transfers, so a Friday transfer before a Monday holiday will not arrive until Wednesday at the earliest.
  • International transfers and wire transfers have their own holiday schedules that may differ from domestic bank holidays.

How bank holidays affect transfers and payments

When you send a transfer on a bank holiday, the transaction sits in a queue until the banking system reopens. Your bank will accept the transfer request — you will see it in your account as "pending" — but the actual movement of money does not happen. The receiving bank also cannot process incoming transfers, so even if your bank were open, the money could not arrive at its destination.

The delay extends beyond the holiday itself if the holiday falls on a Friday or before a weekend. A transfer sent on Friday before a three-day weekend (Friday holiday, Saturday, Sunday) will not clear until Tuesday. A transfer sent on Thursday before a Friday holiday will not clear until Monday. This is why banks recommend sending time-sensitive transfers on Wednesday or earlier in the week.

Automatic payments and bill payments scheduled for a bank holiday usually process on the next business day instead. If you have a mortgage payment due on a holiday, your bank will typically send it the next day. Check with your bank about how it handles automatic payments during holidays — some banks process them early, and others delay them.

The difference between bank holidays and business days

A business day is any day the banking system is open and processing transactions. Monday through Friday are business days unless a federal or state holiday falls on one of those days. Saturday and Sunday are never business days, even if no holiday is observed.

When a bank says a transfer takes "one to two business days," it means one to two days when the banking system is actually open. A transfer sent on Friday afternoon will not arrive until Monday at the earliest (skipping the weekend). A transfer sent on Thursday before a Friday holiday will not arrive until Tuesday (skipping Friday and the weekend). The calendar days that pass are longer than the business days that count.

Some banks advertise "next business day" transfers or "same-day" transfers. These services still stop for bank holidays. A same-day transfer sent on a holiday will process the next business day instead. Read the fine print on your bank's transfer service to see whether it explicitly excludes holidays.

Bank holidays by month and what to watch for

January brings New Year's Day (January 1), which is always a Monday or falls on a weekend. If it falls on a weekend, most banks close on the nearest weekday. Martin Luther King Jr. Day falls on the third Monday of January. Both holidays can create a four-day weekend if they fall adjacent to a weekend.

February includes Presidents' Day on the third Monday. May has both Memorial Day (last Monday) and Juneteenth (June 19, though observed on the nearest weekday if it falls on a weekend). June 19 is a newer federal holiday, so some older banking systems may still be catching up to it.

July includes Independence Day (July 4), which often creates a long weekend. September has Labor Day on the first Monday. October has Columbus Day on the second Monday, though some banks and states do not observe it. November includes Veterans Day (November 11) and Thanksgiving (fourth Thursday) plus the day after, which many banks also close for. December has Christmas (December 25) and sometimes December 26 if Christmas falls on a weekend.

Planning transfers around bank holidays

The safest approach is to send transfers at least two business days before you need the money to arrive. If you need money on a Monday and Monday is a bank holiday, send the transfer on Thursday. If you need money on Tuesday and Monday is a holiday, send it on Friday of the previous week (which gives you Friday, Monday off, and Tuesday to receive).

Check your bank's website for its full holiday schedule before you send a transfer. Most banks publish this schedule in their FAQ or customer service section. Some banks also let you see the holiday schedule in their mobile app or online banking portal. If you cannot find it, call customer service and ask which days the bank is closed.

For recurring payments or bills due on a bank holiday, contact the recipient (your landlord, utility company, loan servicer) and ask how they handle holiday payments. Some will accept payments on the next business day without penalty. Others may require you to send the payment earlier in the week. Getting this in writing prevents disputes later.

Wire transfers and international transfers on bank holidays

Wire transfers sent on a bank holiday will not process until the next business day, just like regular transfers. However, wire transfers also depend on the receiving bank's holiday schedule. If you send a wire on a U.S. bank holiday to a bank in another country, the receiving bank may also be closed for its own holidays. The wire will sit in the system until both banks are open.

International transfers are slower than domestic ones even on regular business days. A transfer to Europe or Asia may take three to five business days under normal circumstances. Add a bank holiday to either end of the transfer, and you could be waiting a week or more. If you are sending money internationally, check the holidays observed in both the sending and receiving countries.

Some wire transfer services and money transfer companies (like Western Union or MoneyGram) operate on different schedules than banks. They may process transfers on weekends or have their own holiday calendar. If you are using a non-bank service, ask whether it closes on bank holidays.

What happens if you need money on a bank holiday

If you need cash on a bank holiday, ATMs will still work. You can withdraw money from your account using an ATM even though the bank building is closed and no staff are present. However, you cannot deposit checks or cash, and you cannot speak to anyone about your account.

If you need to send money urgently on a bank holiday, some options are slower than others. A wire transfer will not process until the next business day. A peer-to-peer payment app like Venmo or PayPal may process when ready between users, though the money may not leave the app and enter a bank account until the next business day. A check will not clear any faster. Your best option depends on who you are sending money to and whether they use the same payment app you do.

Frequently Asked Questions

If I send a transfer at 11 p.m. on a Thursday before a Friday holiday, when will it arrive?

The transfer will not process until Monday at the earliest, assuming the receiving bank is also closed on Friday. You will see it as "pending" in your account on Thursday night, but the money will not leave your account or arrive at the destination until Monday. If the receiving bank is open on Friday, it may arrive Friday afternoon, but your bank will not send it until Friday morning.

Do ATMs work on bank holidays?

Yes. ATMs operate 24/7 even when the bank building is closed. You can withdraw cash, check your balance, and transfer money between your own accounts. You cannot deposit checks or cash, and you cannot access services that require a teller or manager.

What if my rent or loan payment is due on a bank holiday?

Contact your landlord or loan servicer before the holiday and ask how they handle payments due on holidays. Most will accept the payment on the next business day without penalty or late fees. Get their answer in writing or save the email confirmation. If you are paying through your bank's bill pay service, the bank will usually send the payment the next business day automatically.

Are bank holidays the same in every state?

The ten federal holidays are the same nationwide, but some states observe additional holidays. A few states recognize Robert E. Lee's birthday or Juneteenth on different dates. Some banks also close on Good Friday even though it is not a federal holiday. Check your specific bank's holiday schedule rather than assuming all banks close on the same days.

Do online banks close on bank holidays?

Online banks close on the same federal holidays as traditional banks because they use the same Federal Reserve payment system. However, online banks may not close their customer service lines or their apps. You can still log in and see your account, but transfers will not process until the next business day. Some online banks offer customer service on holidays even though they do not process transactions.