Payment processing is critical to keeping the U.S. economy running smoothly.
Businesses, government agencies, organizations, and consumers all depend on predictable cash flow to manage their financial obligations. However, on bank holidays, payment processing and many banking services pause, as banks and financial institutions typically do not operate.
Understanding U.S. bank holidays in advance is essential for planning deposits, payroll, withdrawals, and other banking and payment needs.
When Are Bank Holidays in the U.S.
In the U.S., bank holidays coincide with Federal holidays and are determined by the Federal Reserve. 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 holiday falls on a Sunday, the bank holiday is observed the following Monday. All Federal Reserve offices are closed on the following Monday.
Bank Holidays in 2025, 2026, 2027 and 2028
The Federal Reserve announces bank holidays several years in advance, making it easier to plan.
| Holiday | 2025 | 2026 | 2027 | 2028 |
| New Year’s Day | January 1 | January 1 | January 1 | January 1 |
| Martin Luther King, Jr. Day | January 20 | January 19 | January 18 | January 17 |
| Washington’s Birthday | February 17 | February 16 | February 15 | February 21 |
| Memorial Day | May 26 | May 25 | May 31 | May 29 |
| Juneteenth National Independence Day | June 19 | June 19 | June 19* | June 19 |
| Independence Day | July 4 | July 4 | July 4* | July 4 |
| Labor Day | September 1 | September 7 | September 6 | September 4 |
| Columbus Day | October 13 | October 12 | October 11 | October 9 |
| Veterans Day | November 11 | November 11 | November 11 | November 11 |
| Thanksgiving Day | November 27 | November 26 | November 25 | November 23 |
| Christmas Day | December 25 | December 25 | December 25 | December 25 |
* Banks will observe Independence Day on July 5, 2027.
How Bank Holidays Affect Payments
Bank holidays can disrupt the timing of 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:
This pause can result in the following impacts:
Payroll Adjustments
- Employers may need to run payroll early to ensure employees receive direct deposits before the holiday.
- Payroll services like Gusto can help synchronize payroll schedules with bank holiday calendars.
Payment Delays
- Online payments initiated on a bank holiday are typically processed the next business day.
- For urgent transactions, consider using expedited options like same-day ACH.
Limited Banking Services
- While physical bank branches are closed, ATMs, mobile apps, and online banking services remain operational for routine transactions.
What About Other Holidays?
Not all widely observed holidays are federal bank holidays. Some states recognize additional holidays, permitting state-chartered banks to close. Additionally:
- The New York Stock Exchange (NYSE) observes a distinct holiday calendar, including early closures on select days.
- Holidays like Easter Sunday are not federal bank holidays but may impact other financial services.
Understanding the nuances of bank holidays ensures you’re prepared to manage your financial activities without disruption.
