January 1st is a federal bank holiday in the United States

Yes, January 1st (New Year's Day) is a federal bank holiday. Banks close on this day, and most financial transactions do not process. If you are expecting a deposit, transfer, or payment to arrive on January 1st, it will not land in your account until the next business day — which is January 2nd.

The same delay applies to checks you deposit, wire transfers you send, and ACH payments (the electronic transfers used for payroll, bill payments, and refunds). The Federal Reserve does not process payments on federal holidays, so your bank cannot move money even if the branch building is open for limited hours.

This matters most if you are waiting for a tax refund, stimulus payment, insurance refund, or paycheck timed to arrive around the new year. A deposit scheduled for January 1st will sit in the Federal Reserve's queue until January 2nd at the earliest.

Key Takeaways

  • Banks are closed on January 1st and do not process deposits, transfers, or withdrawals on that day.
  • Any payment scheduled to arrive on January 1st will not clear until January 2nd or later, depending on your bank's processing schedule.
  • This delay affects tax refunds, stimulus payments, payroll deposits, and insurance refunds — anything that moves electronically through the banking system.
  • If you need cash on January 1st, withdraw it before December 31st, since ATMs may also be unavailable or limited at some branches.
  • State and local government offices are also closed on January 1st, so you cannot reach tax agencies or refund departments that day.

How the federal holiday affects deposits and payments

When the Federal Reserve closes for a holiday, no bank in the country can clear payments through the central banking system. This is not a choice individual banks make — it is a hard stop in the payment infrastructure. Your bank's computers may be running, but they cannot send or receive money from other banks or the government.

If your employer's payroll system is set to deposit your check on January 1st, the deposit will queue up and process on January 2nd instead. The same is true for tax refunds, stimulus checks, and insurance refunds. The IRS, state tax agencies, and insurance companies all use the same Federal Reserve system to move money, and none of them can push payments through on a federal holiday.

Some banks offer early direct deposit — meaning they credit your account before the official deposit date — but they cannot do this on a federal holiday. The money has to clear through the Federal Reserve first, and that does not happen on January 1st.

What stays closed and what might be open

Bank branches are closed on January 1st. Teller windows do not open, and you cannot visit a branch to withdraw cash or speak to a representative. However, ATMs usually remain available, though some branches limit ATM access or run out of cash if demand is high.

Online banking portals stay open — you can log in and check your balance — but you cannot initiate wire transfers or other transactions that require the Federal Reserve to process them. You can schedule a transfer to happen on January 2nd, but it will not execute until then.

Government offices that handle refunds and payments are also closed on January 1st. The IRS, state tax departments, and Social Security Administration do not answer phones or process requests. If you need to check the status of a refund or payment, you will have to wait until January 2nd.

Planning around the January 1st bank holiday

If you are expecting a refund or payment around the new year, assume it will not arrive on January 1st. Plan your budget as if the money is coming on January 2nd or 3rd instead. This is especially important if you are counting on a tax refund or insurance refund to cover an expense early in January.

If you need cash on January 1st, withdraw it from an ATM before December 31st. Some ATMs run out of cash during holiday periods, so plan ahead. Do not assume you can get cash on the morning of January 1st.

If you are tracking a refund or payment status, check the tracking tool or website on December 31st or January 2nd — not on January 1st. Government websites and bank portals may show outdated information on the holiday itself, since no processing happens that day.

Checking the status of a refund or payment around January 1st

Most refund tracking systems update once per day, usually in the evening. If you check on December 31st, you will see the most recent status. On January 1st, the status will not change because no processing happens. Check again on January 2nd to see if the payment has moved forward.

For tax refunds, use the IRS "Where's My Refund?" tool on the IRS website. For stimulus payments, check the status tool on the Treasury Department website. For insurance refunds, log into your insurance company's online account. These tools are available 24/7, but the information they show is only as current as the last processing cycle, which ends before the holiday.

If a refund or payment was supposed to arrive on January 1st and does not show up by January 3rd, contact the issuing agency or your bank. A delay of one or two business days is normal around holidays, but longer delays may indicate a problem with your account or the payment itself.

Other federal holidays that affect banking

January 1st is one of eleven federal bank holidays in the United States. The others are Martin Luther King Jr. Day (third Monday in January), Presidents' Day (third Monday in February), Memorial Day (last Monday in May), Juneteenth (June 19th), Independence Day (July 4th), Labor Day (first Monday in September), Columbus Day (second Monday in October), Veterans Day (November 11th), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25th).

Banks close on all of these days, and the Federal Reserve does not process payments. If a payment is scheduled to arrive on any federal holiday, it will be delayed until the next business day. Some holidays fall on weekends, which means the following Monday is observed instead — for example, if Christmas falls on a Saturday, banks close on Monday, December 26th.

Frequently Asked Questions

Will my direct deposit arrive on January 1st if my employer scheduled it for that day?

No. Your employer's payroll system will attempt to send the deposit, but the Federal Reserve will not process it until January 2nd. The deposit will appear in your account on January 2nd or 3rd, depending on your bank's processing schedule. Contact your employer's payroll department if you need the deposit moved to an earlier date.

Can I withdraw cash from an ATM on January 1st?

Usually yes, but not always. Most ATMs remain available on federal holidays, but some branches limit access or run out of cash during high-demand periods. Withdraw cash before December 31st if you know you will need it on January 1st.

What if my tax refund or insurance refund was supposed to arrive on January 1st?

It will arrive on January 2nd or later instead. Check the status on January 2nd using the tracking tool provided by the IRS or your insurance company. A one or two-day delay is normal around federal holidays.

Does the bank holiday affect wire transfers I send on December 31st?

Wire transfers sent on December 31st will process on December 31st if you send them before the bank's cutoff time (usually 2 or 3 p.m.). Wires sent after the cutoff will process on January 2nd instead.

Are state and local government offices also closed on January 1st?

Yes. State tax agencies, local housing offices, and most government services are closed on January 1st. If you need to reach a government office about a refund or payment, call on January 2nd.