January 1st is a federal bank holiday in the United States
Yes. January 1st — New Year's Day — is a federal holiday, which means most banks, federal offices, and stock markets close. The Federal Reserve does not process payments that day. If you need to deposit a check or transfer money, it will not clear until the next business day.
However, "bank holiday" can mean different things depending on where you bank and what you are trying to do. Some credit unions and online banks operate on different schedules. Some services — like ATM withdrawals and mobile check deposits — work on the holiday itself, even though the bank building is closed and staff are not working.
The key distinction: the bank is closed, but not all banking services stop.
Key Takeaways
- Federal banks close on January 1st, and the Federal Reserve does not process transfers or clear checks that day.
- ATMs and mobile banking apps work on January 1st, but deposits and transfers will not post until January 2nd at the earliest.
- Credit unions and online banks may have different holiday schedules — check your institution's website to confirm.
- If you need money on January 1st, withdraw cash from an ATM before the holiday or use a service that operates 24/7.
- Payroll and government payments (like tax refunds or Social Security) scheduled for January 1st typically arrive on the next business day instead.
What actually closes on January 1st
Federal banks close their physical branches on January 1st. This includes Bank of America, Wells Fargo, Chase, and most other major national banks. Federal credit unions also close. The Federal Reserve itself does not operate, which means wire transfers, ACH transfers, and check clearing all stop.
Stock markets (NYSE and NASDAQ) close. The U.S. Treasury does not process payments. Government offices at the federal level are closed, though some state and local offices may have different schedules.
If you have a paycheck or tax refund scheduled to deposit on January 1st, it will not clear until January 2nd. The same applies to direct deposits from government programs like Social Security, unemployment benefits, or stimulus payments.
What stays open on January 1st
ATMs work 24/7, including on January 1st. You can withdraw cash, check your balance, and transfer money between your own accounts at most ATMs, even though the bank building is closed.
Mobile banking apps and online banking portals stay open. You can log in, view your account, and initiate transfers. However, those transfers will not actually process until the bank reopens on January 2nd.
Mobile check deposit (taking a photo of a check through your bank's app) works on January 1st, but the check will not clear until January 2nd or later, depending on your bank's processing time.
Some online banks and fintech companies (like Chime, Ally, or SoFi) may process transactions differently. A few operate on weekends and holidays. Check your specific bank's holiday schedule on their website.
When deposits and transfers actually post
If you deposit a check on January 1st using mobile deposit or an ATM, it enters the queue but does not clear until January 2nd. Your bank may show it as "pending" immediately, but the funds are not available and the check has not actually been processed by the Federal Reserve.
ACH transfers (like moving money between banks) initiated on January 1st will not process until January 2nd. Wire transfers also wait until the Federal Reserve reopens.
Direct deposits scheduled for January 1st — paychecks, tax refunds, government payments — typically arrive on January 2nd instead. Some employers and government agencies move the deposit to the last business day before the holiday, so money may arrive on December 31st. Check with your employer or the agency sending the payment to confirm their specific policy.
What to do if you need money on January 1st
Withdraw cash from an ATM before January 1st. This is the most reliable way to have money available on the holiday itself.
If you are expecting a direct deposit on January 1st and need the money that day, contact your employer or the government agency sending the payment. Ask whether they can deposit it on December 31st instead, or whether they have already moved the deposit date.
If you use an online bank or credit union, check their holiday schedule. Some process transactions on federal holidays. Call their customer service line (which may have holiday hours) or check their website for their specific January 1st policy.
If you need to pay a bill on January 1st, set up the payment before the holiday. Most bill-pay systems let you schedule a payment in advance, and it will process on the date you choose — even if that date is after the holiday.
State and local variations
January 1st is a federal holiday everywhere in the United States, so all federal banks close. However, some state-chartered banks and credit unions may have different policies. A few states observe additional holidays that federal banks do not, but January 1st is universal.
Some local government offices stay open on January 1st even though federal offices close. If you need to conduct business with a city or county agency, check their website or call ahead to confirm their holiday schedule.
Retail banks (branches inside grocery stores or pharmacies) may have different hours on January 1st. Some stay open with reduced staffing. Call your specific branch to ask.
Frequently Asked Questions
Will my paycheck deposit on January 1st?
Most payroll deposits scheduled for January 1st arrive on January 2nd instead, because the Federal Reserve does not process transfers on federal holidays. Some employers move the deposit to December 31st. Contact your payroll department or check your pay stub to see what date they use when January 1st falls on a business day.
Can I use my debit card on January 1st?
Yes. Debit card transactions at stores, restaurants, and ATMs work normally on January 1st. The bank is closed, but the payment network operates 24/7. Your transaction will post to your account, though it may show as pending until January 2nd.
What if January 1st falls on a weekend?
If January 1st is a Saturday or Sunday, federal banks are already closed. The observed holiday is typically the following Monday, so banks close on Monday, January 2nd instead. Check your bank's website to confirm which day they observe.
Do credit unions close on January 1st?
Federal credit unions close on January 1st. State-chartered credit unions may have different policies, though most also close. Call your credit union or check their website to confirm their specific holiday schedule.
Can I transfer money between my own accounts on January 1st?
You can initiate a transfer through your bank's app or website on January 1st, and it will show as pending. However, the transfer will not actually complete until January 2nd, when the bank reopens and the Federal Reserve processes it.