U.S. bank holidays: How holidays affect banking

An extra day to sleep in. A chance to go on a road trip. Time to complete projects around the house. Often, bank holidays mean the opportunity to enjoy a long weekend. But before you do, it’s a smart idea to consider any upcoming banking transactions first.

If you think you’ll need to deposit funds or send someone a payment over a bank holiday and you’re wondering, “Are the banks open tomorrow?”, you might have more questions. For example:

• How do bank holidays affect direct deposit? What about other transactions?

• How can I plan for bank holidays?

• When are the bank holidays?

Below, see our list of U.S. bank holidays as it relates to your banking transactions.

Every bank in the U.S., brick-and-mortar or online, recognizes bank holidays. Currently, there are 11 bank holidays selected by the Federal Reserve. The newest bank holiday is Juneteenth, which became a federal holiday in 2021.

“Most banks will follow the same holiday schedule,” says Eric Rosenberg, a financial writer, speaker and founder of a personal finance blog. He adds that some banks recognize additional holidays as well.

These are the current bank holidays in the United States:

• New Year’s Day

• Martin Luther King Jr. Day

• Washington’s Birthday (Presidents Day)

• Memorial Day

• Juneteenth National Independence Day                                

• Independence Day

• Labor Day

• Columbus Day (also recognized as Indigenous Peoples’ Day in many states)

• Veterans Day

• Thanksgiving Day

• Christmas Day                                

Although all banks recognize bank holidays, not all banks physically close their doors during them (though many do). Some general standards to keep in mind:

• If a bank holiday falls on a Saturday, banks might be closed on the preceding Friday.

• If a bank holiday falls on a Sunday, the bank may be closed the following Monday.

As you can see, while these bank holidays may be a chance to relax, you should be aware of the impact they can have on your financial transactions.

There are several common banking transactions that are affected by bank holidays. If you’re wondering, “Do holidays affect direct deposit?” the answer is yes. Direct deposit is among the transactions that are delayed due to bank holidays. Learn more about these transactions and how they’re affected:

An Automated Clearing House (ACH) transfer is an electronic movement of money from bank to bank. Direct deposit is one type of ACH transfer. Say that you get your paycheck deposited into your checking account every other Friday. If your payday falls on a bank holiday, your money could be stuck in processing until the next business day.

ACH transfers are also used for direct payments. If you’re sending an autopayment for a credit card or other bill, that may also be delayed.

Wire transfers are another way of moving money electronically between banks. These are commonly used during the homebuying process. When purchasing a home, funds must be transferred within a certain time frame, Rosenberg says. But a bank closure would prevent those wired funds from processing until the next business day.

One of the perks of online banking is the ability to deposit checks with your mobile phone. With a Capital One 360 Checking account, it’s just as fast to deposit a check from your phone as it is at an ATM. It saves you the time and hassle of making your way to the nearest bank branch. But even mobile check deposits are affected by bank holidays. While you can start a mobile check deposit, it won’t be processed until the next business day.

If you want to send money from one bank to another, keep in mind that these transactions can be delayed over a bank holiday. Transfers between separate banks may not be processed until the next business day. However, internal transfers within the same bank, such as moving money between your savings and checking accounts, are typically processed during bank holidays. You can easily move your money between your 360 Performance Savings account and 360 Checking account with just a few taps in the Capital One app.

Planning ahead can help you avoid the delays that bank holidays can cause.

“If you’re ever worried about overdrawing your account or if you keep a low balance, it’s very important to think ahead about bank holidays or any other time your regular cashflow might be interrupted or changed,” Rosenberg says.

Many people will wait until a holiday has arrived to consider whether it’s a bank holiday. But there’s a better way. Rosenberg recommends marking the holidays in your planner or on your calendar. That way, you won’t have any confusion over when bank holidays are. Setting alerts or reminders can also help you stay one step ahead. Because some of the holidays fall on different days every year, tracking them in advance is key.

Noting upcoming bank holidays will go a long way toward helping you plan around any disruptions. To take things a step further, you can use the following services that your bank may offer:

See if your bank helps you get your paycheck earlier. With some bank accounts, you can get your paycheck up to two days early when you set up direct deposit. That way, you can have access to your money even if a bank holiday occurs on payday. You can get paid sooner with the early paycheck feature if you have a Capital One 360 Checking account.

Scheduling bill payments through your bank’s online portal or app is usually easy and convenient. You can also schedule payments early if a bank holiday may interfere with a payment’s due date. Some banks may allow you to adjust recurring payments scheduled for a bank holiday and deliver them the day before. This can help you avoid late bills caused by holiday delays.

If you’re concerned about having enough money in your bank account to cover bills or withdrawals before a bank holiday, keep in mind that some banks offer account alerts. These services can send email, text or push notifications about low account balances. “Many banks offer many features that will help you stay one step ahead, even if you don’t track every transaction and balance your checkbook,” Rosenberg says.

Bank holidays can affect when deposits clear and transfers go through. Checking your schedule in advance and handling transactions early can help you avoid unnecessary delays. Online and mobile banking tools can also make it easier to stay on top of your money when branches are closed.

• Understand how bank holidays can affect your direct deposits, payments and transfers. 

• Set reminders for upcoming bank holidays so you know when transactions may be delayed. 

• Take advantage of banking features to manage your money better. Many banks offer early direct deposit and online bill pay to support your financial future.

One more piece of advice: “It’s important to stay thoughtful and keep track of your money the entire year and not just during bank holidays,” Rosenberg says. “Many people who struggle with money ignore the problem, hoping it will fix itself. It never will.”

It’s easier to prepare for bank holidays when your bank account includes easy-to-use, money-saving features. If you haven’t yet, now’s the time to explore the benefits of a no-fee savings account. Capital One 360 Performance savings accounts are fee-free: Add in no minimum balance requirements and you have more money in your wallet.