Yes, Christmas Day is a federal bank holiday in the United States
Christmas Day (December 25) is an official federal holiday. Banks close on this day, and most government offices shut down. The Federal Reserve does not process payments, and the stock market does not trade.
However, "bank holiday" does not mean everything financial stops. Some services continue, and the rules differ depending on whether you are dealing with a traditional bank, an online bank, a credit union, or a payment processor. If you need to move money or access funds on Christmas Day, you need to know which services actually close and which ones keep running.
Key Takeaways
- Traditional brick-and-mortar banks close on Christmas Day, and the Federal Reserve does not process transfers or check clearing that day.
- Online banks and payment apps like Venmo, PayPal, and Cash App continue to work on Christmas Day, though transfers may not settle until the next business day.
- The stock market, bond market, and futures markets all close on Christmas Day, so you cannot trade or execute orders.
- If Christmas falls on a weekend, federal offices and banks close on the observed holiday (usually the nearest weekday), not on December 25 itself.
- ATMs and debit cards work on Christmas Day even when banks are closed, so you can withdraw cash if you need it.
What actually closes on Christmas Day
Federal banks and the Federal Reserve close completely on Christmas Day. This means the Federal Reserve does not clear checks, process wire transfers, or handle ACH payments (the system banks use to move money between accounts). If you send a wire transfer on Christmas Day, it will not leave your account until the next business day.
Physical bank branches close. You cannot walk into a Chase, Bank of America, Wells Fargo, or any other traditional bank on Christmas Day to deposit a check, withdraw cash at the teller window, or speak to a banker. Credit unions also close on Christmas Day.
The stock market, bond market, and commodity futures markets all close on Christmas Day. You cannot buy or sell stocks, bonds, or other securities. Any order you place will sit in the queue until the market opens on the next business day.
What stays open and working on Christmas Day
Online banks remain operational on Christmas Day. Banks like Ally, Charles Schwab Bank, and other internet-only institutions do not have physical locations, so they do not "close" in the traditional sense. You can log into your account, check your balance, and initiate transfers. However, the underlying payment systems (the Federal Reserve and ACH network) are still closed, so your transfer will not actually move until the next business day.
Payment apps and digital wallets continue to function. Venmo, PayPal, Cash App, Google Pay, and Apple Pay all work on Christmas Day. You can send money to another person through these services. The money may appear instantly in the recipient's app, but the actual bank-to-bank settlement happens the next business day when the Federal Reserve reopens.
ATMs work on Christmas Day. Even though bank branches are closed, ATM networks operate 24/7. You can withdraw cash, check your balance, and deposit checks at an ATM (though deposited checks will not clear until the next business day).
Debit cards and credit cards work normally on Christmas Day. You can use them to make purchases, pay bills online, or withdraw cash. The transaction will post to your account, though the actual settlement between your bank and the merchant's bank may not happen until the next business day.
How the observed holiday works when Christmas falls on a weekend
When December 25 falls on a Saturday or Sunday, the federal government observes the holiday on a different day. If Christmas is on a Saturday, the observed holiday is usually Friday, December 24. If Christmas is on a Sunday, the observed holiday is usually Monday, December 26.
Banks and the Federal Reserve close on the observed date, not on December 25 itself. This matters if you are planning to move money or access services. For example, in 2023, Christmas was on a Monday, so banks closed on Monday, December 25. In 2024, Christmas is on a Wednesday, so banks close on Wednesday, December 25. In 2025, Christmas is on a Thursday, so banks close on Thursday, December 25. In 2026, Christmas is on a Friday, so banks close on Friday, December 25. In 2027, Christmas is on a Saturday, so the observed holiday is Friday, December 24, and banks close on Friday.
What to do if you need money on Christmas Day
If you need cash, withdraw it before Christmas Day. ATMs work on the holiday, but if you need a large amount or have a problem with the ATM, you will not be able to reach a bank employee until the next business day.
If you need to send money to someone, use a payment app like Venmo, PayPal, or Cash App. The money will appear in the recipient's account right away (or within a few hours), even though the underlying bank settlement happens later. This is faster and more reliable than waiting for the Federal Reserve to reopen.
If you need to deposit a check, use a mobile check deposit through your bank's app if your bank offers it. Take a photo of the front and back of the check and submit it through the app. The check will not clear until the next business day, but at least it will be in the system.
If you have a banking emergency on Christmas Day (fraud, a card that does not work, a critical error), call your bank's customer service line. Most banks maintain a 24/7 phone line for emergencies, even on holidays. You may not be able to visit a branch, but you can speak to someone who can help.
How long transfers take after Christmas Day
Any transfer you initiate on Christmas Day will process on the next business day (December 26, unless that is also a holiday). Wire transfers typically settle within hours once the Federal Reserve reopens. ACH transfers (the standard way banks move money between accounts) usually take one to two business days after the Federal Reserve processes them.
Check deposits take longer. A check deposited on Christmas Day (via ATM or mobile app) will not clear until at least December 27 or 28, depending on your bank's policies and the check's routing information.
Payment app transfers are faster. Money sent through Venmo, PayPal, or Cash App on Christmas Day usually appears in the recipient's account within minutes or hours, even though the bank settlement happens later.
Frequently Asked Questions
Can I use my debit card on Christmas Day?
Yes. Debit cards work on Christmas Day just like any other day. You can make purchases, withdraw cash at ATMs, and pay bills online. The transaction will post to your account, though the actual settlement between banks may not happen until the next business day.
Will my direct deposit hit my account on Christmas Day?
No. Direct deposits scheduled for Christmas Day will not process until the next business day (December 26) because the Federal Reserve and ACH network are closed. If your paycheck is normally deposited on December 25, it will arrive on December 26 instead.
Can I wire money on Christmas Day?
You can initiate a wire transfer on Christmas Day through your bank's website or app, but it will not actually send until the next business day when the Federal Reserve reopens. Some banks may not even allow you to schedule a wire for Christmas Day itself.
Do credit unions close on Christmas Day?
Yes. Credit unions close on Christmas Day just like banks do. Their branches will be closed, and they will not process transfers through the Federal Reserve. However, you can still use your debit card, ATM, and online banking services.
What if I need to pay a bill on Christmas Day?
Pay online through your biller's website or your bank's bill pay system. The payment will be scheduled for the next business day. If the bill is due on Christmas Day, contact the company before the holiday to explain that you are paying on the next business day due to the bank holiday.