Payment processing is critical for the U.S. economy. Businesses, government, organizations, and consumers all rely on predictable cash flow to stay afloat. On bank holidays, payment processing is paused as many banks do not operate. Knowing the U.S. bank holidays in advance can help businesses plan for the pause.
When Are Bank Holidays
In the U.S., bank holidays coincide with Federal holidays. Some holidays fall on the same calendar day each year and others are on the same day of the week each year. For example, New Year’s Day is always on January 1 each year. However, Martin Luther King, Jr. Day is always on the third Monday of January.
Sometimes the actual holiday falls on the weekend. In those instances, the holiday is observed on the following Monday. For Saturday bank holidays, Federal Reserve Banks are open on the preceding Friday, but the Board of Governors is closed. When the bank holiday falls on a Sunday, all Federal Reserve offices are closed on the following Monday.
Bank Holidays in 2023 and 2024
The Federal Reserve announces bank holidays several years in advance, making it easier to plan.
|New Year’s Day||January 1*||January 1|
|Martin Luther King, Jr. Day||January 16||January 15|
|Washington’s Birthday||February 20||February 19|
|Memorial Day||May 29||May 27|
|Juneteenth National Independence Day||June 19||June 19|
|Independence Day||July 4||July 4|
|Labor Day||September 4||September 2|
|Columbus Day||October 9||October 14|
|Veterans Day||November 11**||November 11|
|Thanksgiving Day||November 23||November 28|
|Christmas Day||December 25||December 25|
* Banks will observe New Year’s Day on January 2, 2023
** Banks will be open on the Friday before Veterans Day 2023
How Bank Holidays Affect Payments
Payments processed over the ACH network, which facilitates bank to bank transfers, rely on the Federal Reserve. Because the Federal Reserve closes on bank holidays (and weekends), ACH payments won’t post on those days. The pause on payment processing could mean:
- Payroll timing should be adjusted. For instance, your company may decide to run payroll early so employees receive their direct deposit before the holiday. Using a service like Gusto can help you track holidays against your payroll schedule.
- Online payments made on a bank holiday may be deposited one business day later. You can explore expedited payment options like same-day ACH.
While physical bank branches are closed, ATMs and online banking services are still available.
What About Other Holidays?
You may have noticed that bank holidays don’t include every major holiday. Some states observe additional holidays and allow state banks to close on those days. In addition, The New York Stock Exchange observes additional holidays and closes early on certain days.