Most banks close on federal holidays, but your money keeps moving
Yes, most banks close on federal holidays. The Federal Reserve observes 11 federal holidays per year, and banks that are members of the Federal Reserve System must close on those days. This means you cannot walk into a branch, speak to a teller, or conduct in-person business. However, your account does not freeze. Deposits made before the holiday will still be there, and automatic payments scheduled for that day usually process on the next business day.
The holidays when 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, Thanksgiving, and Christmas. Some banks may also close on the day after Thanksgiving, though this is not federally required.
What matters more than the closure itself is understanding how the closure affects the timing of your transactions. A deposit made on a Friday before a three-day weekend will not clear until Tuesday. A bill payment scheduled for Monday when the bank is closed will process on Tuesday. ATM withdrawals and online transfers work normally because they do not require a human teller.
Key Takeaways
- Banks close on 11 federal holidays each year, but ATMs, online banking, and automatic payments continue to work.
- Deposits made on or before a federal holiday will not clear until the next business day the bank is open.
- Bill payments and transfers scheduled for a federal holiday typically process the next business day instead.
- Some banks may have different holiday schedules if they are state-chartered or credit unions, so check your bank's specific calendar.
- Planning ahead for long weekends prevents surprises with payment timing and deposit clearing.
How federal holidays affect deposits and clearing times
When you deposit a check or transfer money on a federal holiday, the transaction does not move through the clearing system that day. The Federal Reserve, which processes most interbank transfers, is closed. This means a check you deposit on a Monday federal holiday will not begin clearing until Tuesday. Your bank may show the deposit in your account when ready, but the funds will not be available to withdraw or spend until the clearing process finishes on the next business day.
The same rule applies to electronic transfers between banks. If you initiate an ACH transfer (the system most banks use for moving money between accounts) on a federal holiday, it will not leave your account until the next business day. This can matter if you are trying to move money to cover a bill due that same day. Plan transfers for at least one business day before a important date when a federal holiday falls in between.
Mobile deposits and ATM deposits also follow this timeline. Depositing a check through your bank's app on a federal holiday will show as pending in your account, but the funds will not be available until the next business day when the Federal Reserve processes it.
What still works when banks are closed
ATMs operate 24/7 on federal holidays. You can withdraw cash, check your balance, and transfer money between your own accounts at any ATM, whether it belongs to your bank or another bank in your bank's network. Some ATMs charge a fee for out-of-network use, so check before you withdraw.
Online banking portals and mobile apps work normally. You can check your balance, view transactions, pay bills, and set up transfers through your bank's website or app on a federal holiday. The transaction will be scheduled and will process on the next business day. Bill payments you schedule through your bank's bill pay system will go out on the next business day if you submit them on a holiday.
Automatic payments and recurring transfers continue as scheduled. If you have a mortgage payment, insurance premium, or subscription set to debit on a federal holiday, it will usually process on that day or the next business day, depending on how your bank handles it. Check your bank's policy if the timing matters for your budget.
Credit unions and state-chartered banks may have different schedules
Not every financial institution follows the exact same federal holiday schedule. Credit unions are not required to follow the Federal Reserve's holiday calendar, though most do. Some credit unions may stay open on certain federal holidays or close on different days. Check your credit union's website or call ahead if you need to know whether they will be open.
State-chartered banks that are not members of the Federal Reserve System may also have different schedules. These banks are regulated by state banking authorities, which may have their own holiday rules. If you bank at a smaller regional or community bank, confirm their holiday schedule directly rather than assuming it matches the federal calendar.
Online banks and fintech companies that do not have physical branches do not close on federal holidays in the traditional sense. You can log in and conduct business anytime. However, transfers to other banks and bill payments may still be delayed if they depend on the Federal Reserve's processing, which stops on federal holidays.
Planning ahead for long weekends and holiday weeks
The most common problem occurs around three-day weekends. If you need cash or expect a deposit to clear by Friday, and Monday is a federal holiday, plan for Tuesday instead. A check deposited on Friday will not clear until Wednesday at the earliest. A bill payment you schedule for Monday will not go out until Tuesday.
For longer holiday periods, like the week between Christmas and New Year's, the delays compound. If Christmas falls on a Wednesday and the bank observes the holiday on Wednesday and the day after, you lose two business days. Deposits made on Tuesday will not clear until Friday. Plan accordingly if you are expecting money or need to make a time-sensitive payment.
If you know a federal holiday is coming and you need to make a payment by a certain date, submit it at least one business day early. If you are waiting for a deposit to clear before you spend the money, assume it will take one extra day. These small adjustments prevent overdraft fees and late payments.
What happens to wire transfers and urgent payments on federal holidays
Wire transfers sent on a federal holiday will not move until the next business day. The Federal Reserve's wire transfer system (Fedwire) does not process on federal holidays. If you send a wire on Monday when the bank is closed, it will be queued and sent on Tuesday. This matters if you are trying to move money urgently or meet a important date.
Some banks offer same-day wire transfers if you initiate them before a certain time on a business day. If a federal holiday falls on your important date, you will need to send the wire the business day before. International wire transfers are even slower and may take several additional days if a federal holiday interrupts the process.
If you have a payment due on a federal holiday itself, the creditor will typically not expect payment that day. Most creditors know banks are closed and will not penalize you for a payment that arrives on the next business day. However, read your payment agreement or contact the creditor to confirm their policy if the timing is tight.
Frequently Asked Questions
Can I withdraw money from my bank account on a federal holiday?
Yes, through an ATM. You cannot visit a branch or speak to a teller, but ATMs work 24/7. If you need to speak to someone at your bank, you will need to wait until the next business day.
Will my automatic bill payment go through if it is scheduled for a federal holiday?
Usually yes, but it may process a day late. Most automatic payments are set up to debit on a specific date, and if that date is a federal holiday, the payment typically goes out on the next business day. Check with your bank or the company you are paying to confirm their specific policy.
How long does it take for a check to clear if I deposit it on a Friday before a three-day weekend?
At least three business days. The check will not begin clearing until Tuesday (after the Monday holiday). Most checks clear within one to two business days after that, so expect the funds to be available by Wednesday or Thursday.
Do online banks close on federal holidays?
Online banks do not have physical branches to close, so you can log in and manage your account anytime. However, transfers to other banks and bill payments may still be delayed one day if they depend on the Federal Reserve's processing system, which stops on federal holidays.
What if I need to make an urgent payment and a federal holiday is in the way?
Submit the payment the business day before the holiday. If you are sending a wire transfer, send it before the holiday. If you are paying a bill, most creditors will not penalize you if the payment arrives one day late due to a federal holiday, but confirm this with them if the important date is strict.