Everyday Money

Bank Holidays: Understanding Their Impact on Deposits and Transactions

December 1, 2023

Federal Holidays allow not only for celebration but also for the employees of banks to enjoy valuable time with their loved ones. However, it’s important to recognize that these holidays can also influence certain financial operations.

In this blog, we’ll explain how bank holidays impact direct deposits and other money-related tasks and how to plan around them so you can enjoy these stress-free holidays.  

Currently, there are 11 bank holidays, which are designated by the Federal Reserve. The newest bank holiday is Juneteenth, which became a federal holiday in 2021.  It is important to note that on Federal Holidays, banks can perform transactions, but due to the Federal Reserve being closed, the transaction most likely won’t post to a bank account until the following day.

For holidays falling on Saturday, Federal Reserve banks and branches will be open the preceding Friday; however, the Board of Governors will be closed. For holidays falling on Sunday, all Federal Reserve offices will be closed the following Monday (www.federalreserve.gov).

These are the current official 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 (Newest Holiday)
  • Independence Day
  • Labor Day
  • Columbus Day
  • Veterans Day
  • Thanksgiving Day
  • Christmas Day

Their Impact:

  • Branch Availability: On bank holidays, branches may be closed or have limited hours, affecting in-person services.
  • Delayed Deposits: Bank holidays can lead to delays in direct deposits. When a holiday falls on a regular business day, financial institutions are often closed, and transactions, including direct deposits, might not be processed until the next business day. This can affect paychecks, government benefits, and other regular deposits.
  • Transaction Processing Delays: Bank holidays can lead to delays in processing various financial transactions, including bill payments, ACH transfers, wire transfers, and transfer of funds between banks. Transactions initiated on or around a bank holiday might take longer to reflect in your accounts.
  • Check Clearing: If you deposit a check close to or on a bank holiday, it might take longer to clear, resulting in a delay in accessing the funds. Electronic check deposits and mobile banking apps can help expedite this process.

Tips for Navigating Bank Holidays:

  • Plan ahead: Be aware of upcoming bank holidyas. Adjust your budget and payment schedules accordingly.
  • Use Online and Mobile Banking: These eliminate the need to visit a physical bank branch, saving you time and effort. However, even mobile check deposits have their limitations during bank holidays. Although you can initiate a mobile check deposit, the processing won’t occur until the following business day. However, you can utilize either online and/or mobile banking platforms to manage your finances. These tools often allow you to access to account balances, transaction histories, set alerts and even schedule payments in advance.
  • Anticipate Cash Needs: If you anticipate needing cash around a bank holiday, consider withdrawing funds a day or two in advance to ensure you have the appropriate funds on hand.

Stay informed about Bank Five Nine’s holiday schedule, explore digital banking options, and consider adjusting your financial routines to ensure a smooth experience even during holiday periods. Sources: Federal Reserve Board – Holidays Observed – K.8

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