The next time you’re doing errands on a day off, keep in mind that banks have days off too. Bank holidays often coincide with national holidays, which can foil your efforts to complete financial to-dos.
If your branch is closed, does the bank still process transactions on holidays? Keep reading to find out on which holidays banks are closed and how that affects the processing of your transactions.
Which Holidays Are Commonly Observed by Banks?
Banks typically observe the holidays designated by the Federal Reserve Board. On these days, bank and credit union branches are generally closed and payment processing is suspended. Some banks may also close on other holidays, or on additional days surrounding these dates. It’s a good idea to check your bank or credit union’s specific holiday observance schedule.
Here’s a look at federal bank holidays for 2023 (note that holiday-related closures may fall on different days in subsequent years).
• New Year’s Day: Monday, Jan. 2
• Martin Luther King Jr. Day: Monday, Jan. 16
• Washington’s Birthday/Presidents’ Day: Monday, Feb. 20
• Memorial Day: Monday, May 29
• Juneteenth National Independence Day: Monday, June 19
• Independence Day: Tuesday, July 4
• Labor Day: Monday, Sept. 4
• Columbus Day: Monday, Oct. 9
• Veterans Day: Friday, Nov. 10
• Thanksgiving: Thursday, Nov. 23
• Christmas: Monday, Dec. 25
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Challenges on Bank Holidays
Bank closures aren’t the end of the world — you can still use your debit and credit cards, check your balance online, and get cash from an ATM. However, you may encounter slower payments to or from your account.
Here’s a closer look at how bank holidays may affect your financial life.
Deposits and Withdrawals May Be Suspended
The Federal Reserve System and the Automated Clearing House (ACH) network can only settle payments when the country’s central bank is open. This can create issues with deposits and withdrawals system-wide, and cause them to be delayed by one business day. ACH payments don’t process on federal holidays or weekends, so if a holiday falls next to a weekend, it can feel like it takes a long time for a payment to process.
Direct Deposits and Payroll Are on Pause
Do banks process payments on holidays? Because direct deposits are often processed by the ACH network, payroll deposits can be delayed due to holiday closures. Payroll delays can be challenging for employees that rely on a consistent payment schedule to pay their bills. In some cases, employers will schedule payments to go out before bank holidays, but they’re not required to do so.
Recommended: Can You Direct Deposit Into a Savings Account?
Banks Do Not Typically Process Checks on Holidays
Most banks don’t process checks on holidays. That means a check you deposit at an ATM or via mobile app on a holiday will be treated as if it were deposited the morning of the next business day. So if you deposit a check on a holiday Monday, it will be treated as if it were deposited on Tuesday morning (if it isn’t a holiday), and might not clear until Wednesday or Thursday. On the bright side, any checks you’ve written can’t be cashed yet either.
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AutoPay May Be Delayed
If you have autopay set up for certain monthly bills and an automated payment falls on a bank holiday, the bank won’t process that payment until the next business day. This could potentially lead to extra fees if you miss the due date. It can be a good idea to plan ahead for bills that fall on holidays to make sure your payments post in time.
Can You Still Use Your Account During Holidays?
Yes. There are workarounds for conducting basic banking on a holiday. What you can do on holidays:
• Deposit a check or withdraw cash at an ATM
• Deposit checks using your bank or credit union’s mobile banking app
• Get cash back at a store when making a purchase with your debit card
• Schedule money transfers and conduct other online banking (though the results may be delayed by one business day)
Note that some ATM networks that don’t allow check deposits on holidays still allow customers to withdraw cash.
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Tips You Can Use to Help During a Bank Holiday
Bank holidays will happen whether we like them or not, but there are some simple actions you can take to lower the nuisance factor.
Be Proactive and Plan Ahead
Consumers and business owners who don’t want to be inconvenienced by bank holidays can plan ahead for them. It can be helpful at the beginning of the year to set calendar alerts a few days before each bank holiday as a reminder that they’re coming up. That way, you can visit your local branch or conduct online transactions a little earlier than usual.
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Early Payments
Banks do not process payments on bank holidays. However, if a bank holiday happens to coincide with payday or occurs during the payroll processing window, then businesses can choose to run their payroll early to make sure their employees aren’t waiting longer than they should to get their paycheck.
Businesses may also choose to schedule online payments to their vendors early to ensure they get paid on time.
Pay Bills Online
If a holiday is going to cause you to miss a payment due date, you may be able to accelerate your payment by making a manual online payment. Some service provider’s allow online payment with same-day crediting. To see if this is possible, simply go to the service provider’s website and log in to your account.
Banking With SoFi
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
When were bank holidays declared?
The first ever bank holiday was declared all the way back in 1933. After a months-long run on U.S. banks, Franklin Delano Roosevelt proclaimed the first bank holiday on March 6, 1933, shutting down the banking system until March 13.
What happens if a payday falls on a bank holiday?
If payday happens to fall on a bank holiday, your paycheck could be delayed by one business day. To avert the delay, employers can choose to process payroll early so that employees have their pay deposited into their bank accounts on time.
Do banks process payments on Good Friday?
Yes. Good Friday is not recognized as a federal holiday, so banks typically continue to process payments as usual.
If I deposit a check on a holiday, when will it clear?
Typically, it takes one to two business days for a check to clear. But business days don’t include holidays or weekends. So if you deposit a check on a holiday, it will be treated as if it were deposited the morning of the next business day.
For example, if you deposit a check on a holiday Monday, it will be treated as if it were deposited on Tuesday morning (if it isn’t a holiday), and might not clear until Wednesday or Thursday.
Do banks process ACH on holidays?
No. Electronic, bank-to-bank money transfers processed through the Automated Clearing House (ACH) Network are paused on holidays.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
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