A bank holiday is a day when banks and most federal offices close, which delays any money movement that requires them
A bank holiday is a day declared by the federal government when banks, the U.S. Treasury, and most federal agencies do not operate. On these days, no deposits clear, no wire transfers process, no checks get deposited, and no government payments go out. If a refund or payment is scheduled to arrive on a bank holiday, it arrives the next business day instead.
The most common bank holidays are New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. There are ten federal holidays total each year. State banks sometimes observe additional holidays, but federal holidays are what matter for tax refunds, stimulus payments, and other government money.
The key thing to understand: a bank holiday does not cancel a payment or refund. It simply pauses it. If the IRS says your refund will arrive on a Friday and that Friday is Christmas, the money arrives on Monday instead. The refund itself is not lost or delayed beyond that one extra day.
Key Takeaways
- Bank holidays pause all money movement for one day — deposits do not clear, transfers do not process, and government payments do not go out.
- The ten federal bank holidays each year are New Year's Day, MLK Jr. Day, Presidents' Day, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, Christmas, and Veterans Day.
- If a refund or payment is scheduled for a bank holiday, it arrives the next business day instead — the money is not lost.
- Some state banks observe additional holidays beyond the federal ten, so a deposit might clear one day later in some states than others.
- Weekends already pause money movement, so a refund scheduled for Saturday or Sunday also arrives on Monday, bank holiday or not.
How bank holidays affect tax refunds and government payments
The IRS and Treasury Department both publish refund and payment dates based on business days, not calendar days. When they say a refund will arrive on a certain date, they mean a business day — a day when banks are open. If that date falls on a bank holiday, the refund moves to the next day banks are open.
For example, if the IRS says your refund will arrive on Monday and Monday is Memorial Day, the money hits your account on Tuesday instead. The delay is automatic and built into how the government schedules payments. You do not need to do anything, and you do not need to contact the IRS.
The same rule applies to stimulus payments, Social Security deposits, unemployment benefits, and any other federal payment. If the scheduled date is a bank holiday, the payment arrives the next business day. If the scheduled date is a weekend, the payment also arrives on Monday — bank holidays and weekends both pause the system.
The federal bank holidays that matter for your refunds
These ten days are observed by all federal banks and the U.S. Treasury:
| Holiday | Typical Date |
|---|---|
| New Year's Day | January 1 |
| MLK Jr. Day | Third Monday in January |
| Presidents' Day | Third Monday in February |
| Memorial Day | Last Monday in May |
| Juneteenth | June 19 |
| Independence Day | July 4 |
| Labor Day | First Monday in September |
| Thanksgiving | Fourth Thursday in November |
| Christmas | December 25 |
| Veterans Day | November 11 |
When a holiday falls on a weekend, the federal government usually observes it on the nearest weekday. If Christmas falls on Saturday, banks close on Friday. If New Year's Day falls on Sunday, banks close on Monday. The IRS website and your bank's holiday schedule will show the actual observed date each year.
Why your bank might have different holidays than the federal government
Some state-chartered banks and credit unions observe holidays beyond the ten federal ones. For example, a few states recognize Robert E. Lee's birthday or other state-specific days. If your bank observes a state holiday that the federal government does not, a deposit or transfer might clear one day later at your bank than at another bank in a different state.
This matters most for checks and transfers between banks. If you deposit a check on a state holiday, your bank might not process it until the next day, even though the federal system is open. The best way to know is to check your bank's holiday schedule on their website or call their customer service line.
For federal payments like tax refunds and stimulus checks, the federal holiday schedule is what matters. Your state's holidays do not affect when the Treasury sends the money — only when your specific bank receives and deposits it into your account.
What to do if your refund is scheduled for a bank holiday
You do not need to do anything. The IRS and Treasury automatically account for bank holidays when they schedule refunds. If your refund date falls on a holiday, the system moves it forward without any action from you.
If you are tracking a refund using the IRS "Where's My Refund?" tool or your state tax agency's tracker, the date shown should already reflect any holiday delays. If the tool says your refund arrives on Tuesday and Monday is a bank holiday, Tuesday is the correct date.
If you are waiting for a refund and the scheduled date passes without the money arriving, check whether that date was a bank holiday or weekend. If it was, wait one more business day. If the money does not arrive within one business day after the holiday, contact the IRS or your state tax agency to check the status.
Bank holidays and direct deposit timing
Direct deposit is faster than mailed checks, but it still stops for bank holidays. When the government sends a direct deposit payment, it travels through the Federal Reserve's system, which does not operate on bank holidays. The payment sits in a queue and processes the next business day.
This means a refund scheduled for Friday arrives Friday if Friday is a business day. If Friday is a bank holiday, it arrives Monday. If Friday is a regular weekend, it also arrives Monday. The timing is the same whether the delay is caused by a holiday or a weekend — one extra day.
Some banks credit direct deposits at different times of day. One bank might show the deposit at 6 a.m., another at 8 a.m., another not until afternoon. This variation happens within the same business day and is not related to bank holidays. The holiday delay is always a full day, not a matter of hours.
Checking your bank's specific holiday schedule
Your bank publishes its holiday schedule online, usually under a link like "Holiday Hours" or "Bank Holidays." You can also call your bank's main customer service line and ask which days they are closed this year. Having the schedule in front of you makes it easy to see whether a refund date falls on a day your bank is closed.
If you use an online bank or credit union, the holiday schedule is just as important. Online banks still close on federal holidays — they just do not have physical branches. Deposits and transfers still pause. Check your bank's website for the full list.
Some banks also publish when they will process payments if a holiday falls mid-week. For example, if a holiday is on Wednesday, some banks tell you whether deposits received Tuesday will clear Wednesday or Thursday. This information is usually in the fine print of the holiday schedule, but it is worth reading if you are waiting for a time-sensitive payment.
Frequently Asked Questions
If my refund is scheduled for Christmas, when will it actually arrive?
If Christmas is a weekday, your refund arrives the next business day after Christmas. If Christmas falls on a weekend, the federal government observes the holiday on the nearest weekday, and your refund arrives the day after that observed date. Check the IRS website or your state tax agency for the exact date.
Does a bank holiday affect checks I deposit at an ATM?
Yes. A check deposited at an ATM on a bank holiday does not enter the clearing system until the next business day. The check itself is time-stamped with the deposit date, but the bank does not process it until they reopen. Checks deposited on Friday also do not clear until Monday, so the delay is the same as a weekend.
Can I wire money on a bank holiday?
No. Wire transfers require the Federal Reserve to be open. If you initiate a wire on a bank holiday, it processes the next business day. If you initiate it on a Friday after business hours, it also processes Monday. Always plan for at least one business day for a wire to clear.
What if my bank is open on a federal holiday but the IRS is closed?
Some banks stay open on federal holidays, but the IRS and Treasury do not. If your bank is open but the federal government is closed, direct deposit payments from the government still do not process. The payment waits in the system and clears the next day the IRS is open, regardless of whether your bank is open.
Do bank holidays affect state tax refunds the same way they affect federal refunds?
Yes. State tax agencies also close on federal bank holidays and most state holidays. A state refund scheduled for a bank holiday arrives the next business day, just like a federal refund. Some states observe additional holidays, so check your state's tax agency website for the full schedule.