A bank holiday stops most financial transactions for a day, which delays refunds, payments, and account transfers by at least one business day

When the federal government declares a bank holiday, banks and the Federal Reserve close their doors. No deposits clear, no wire transfers process, no ACH payments move between accounts. If a refund was scheduled to land on a bank holiday, it lands the next business day instead. The same applies to tax refunds, stimulus payments, insurance payouts, and any other money the government or a business sends to your bank account.

The ten federal bank holidays are New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Columbus Day, Veterans Day, and Thanksgiving and Christmas. Some states and some banks observe additional holidays. The key point: if your refund was supposed to arrive on a holiday, add one business day to the timeline.

Bank holidays matter most when you are tracking a refund down to the exact day. If the IRS says your tax refund will arrive in 21 days and day 21 falls on a Monday that is Presidents' Day, the money will not be in your account until Tuesday. If you are waiting for an insurance refund and the insurer's system shows a Friday payout date but that Friday is the day after Thanksgiving, expect Monday instead.

Key Takeaways

  • Bank holidays pause all electronic money movement, so refunds scheduled for a holiday arrive the next business day instead.
  • The ten federal bank holidays are observed by all banks and the Federal Reserve, though some states and individual banks add their own.
  • When tracking a refund timeline, count only business days and skip any federal holidays that fall within the window.
  • A refund that misses a holiday by one day still clears normally — only money scheduled to land on the holiday itself is delayed.
  • If your refund was promised by a specific date and a bank holiday falls on that date, contact the issuer to confirm the new arrival date.

How bank holidays affect tax refunds

The IRS processes tax refunds year-round, but the timeline they give you assumes normal business days. When you check your refund status on the IRS website or through your tax software, the estimated arrival date is a business day. If that date lands on a bank holiday, the IRS system typically shows the next business day instead, but not always — some older systems do not account for holidays automatically.

If your refund status says it will arrive on a Monday that is Presidents' Day, do not panic if the money does not show up that day. Call the IRS refund hotline at 800-829-1954 or check Where's My Refund on IRS.gov again 24 hours later. The money will be in your account by the next business day. If you filed electronically and chose direct deposit, the delay is usually just one day. If you chose a paper check, the holiday adds to the mail time as well.

How bank holidays affect stimulus payments and government transfers

Stimulus payments, tax credits paid as refunds, and other direct government payments follow the same rule. The Treasury Department and the Bureau of the Fiscal Service coordinate with the Federal Reserve to avoid sending money on bank holidays. In most cases, the government's payment schedule already skips holidays. But if you see a payment date that falls on a holiday, the actual deposit will occur the next business day.

Social Security payments, veterans benefits, and other recurring government payments are not affected by bank holidays in the same way because they are scheduled around them. However, if a payment was supposed to arrive on a holiday due to a processing error or a change in your account, it will be delayed one business day.

How bank holidays affect insurance and business refunds

Insurance companies and businesses that issue refunds operate on their own schedules, but they still depend on the banking system to move money. If an insurer promises a refund within 5 to 7 business days and a bank holiday falls in that window, the count does not include the holiday. A refund issued on a Monday with a 5-business-day timeline would normally arrive by the following Monday, but if Thursday of that week is Thanksgiving, the refund arrives on Tuesday instead.

Some companies build bank holidays into their stated timelines already — they say "5 to 7 business days" precisely to account for this. Others do not, and the delay surprises customers. If you are waiting for a business refund and a bank holiday is coming up, check the company's refund policy to see whether they count holidays. If the policy is unclear, contact customer service and ask them to confirm the new arrival date given the upcoming holiday.

State holidays and regional bank closures

Federal bank holidays apply everywhere, but some states observe additional holidays that may affect local banks. For example, some Southern states observe Confederate Memorial Day, and some Western states observe Pioneer Day. A few banks in those states may close on those days even though the Federal Reserve remains open.

If you live in a state with an additional holiday and your refund is scheduled for that day, check with your specific bank. Call their customer service line or log into your online banking portal and look for a holiday schedule. Most large national banks (Chase, Bank of America, Wells Fargo, Citibank) do not close for state holidays, but regional and community banks sometimes do. If your bank is closed but the Federal Reserve is open, your refund may still process, but your bank will not show the deposit until the next day they are open.

What to do if your refund is delayed by a bank holiday

First, confirm that a bank holiday is actually the cause. Check the federal holiday calendar on OPM.gov to see which days the government observes. Then check your refund status — for tax refunds, use the IRS's Where's My Refund tool; for stimulus payments, use the Treasury's Get My Payment tool; for insurance or business refunds, log into the company's website or call their customer service line.

If the status shows a date that falls on a bank holiday, the delay is expected and normal. Do not contact the issuer unless the refund is now more than one business day past the promised date. If it is, gather your confirmation number or reference number and contact the issuer directly. For the IRS, call 800-829-1954. For other government payments, call the agency that issued the payment. For business or insurance refunds, use the customer service number on your receipt or invoice.

Planning around bank holidays when you need money

If you are counting on a refund to arrive by a specific date and a bank holiday is near, plan for the delay. Request the refund or file your return at least one week before the holiday, not the day before. This gives the issuer time to process and send the money before the holiday window closes.

If you have already requested a refund and a holiday is coming up within your expected timeline, adjust your budget accordingly. Do not assume the money will arrive on the promised date if that date is a bank holiday or the day before one. Set a reminder to check your account the business day after the holiday instead.

Frequently Asked Questions

Does a bank holiday delay my direct deposit paycheck from my employer?

No. Employers schedule paychecks to avoid bank holidays — your paycheck is typically set to deposit on a regular business day. If your employer's payroll system shows a holiday as the deposit date, contact your HR or payroll department to confirm the actual date. The deposit will occur on the next business day.

If a bank holiday falls on a Friday, does my refund arrive on Monday or Tuesday?

It arrives on Monday. The Monday after a Friday bank holiday is a business day, so the refund processes normally. Bank holidays only delay money if the holiday itself is the scheduled deposit day.

Can I request that my refund be sent before a bank holiday to avoid the delay?

You cannot control the exact day a government refund is issued, but you can file your return or request early to give the issuer more time to process before the holiday. For business or insurance refunds, contact the company and ask whether they can expedite the refund before the upcoming holiday. Some will, some will not.

What if my bank is closed on a state holiday but the Federal Reserve is open?

Your refund will likely process at the Federal Reserve level, but your bank will not show the deposit in your account until the day they reopen. The money is yours as of the Federal Reserve's processing date, but you cannot access it until your bank's systems come back online.

How do I know which holidays my bank observes?

Call your bank's customer service line or check their website for a holiday schedule. Most national banks post this information in their FAQ or customer service section. If you cannot find it online, a quick phone call will give you a definitive answer for your specific branch and account type.