Bank holidays are federal days when banks close, which can delay refunds by one to three business days

A bank holiday is a day the federal government declares a holiday, and most banks close in observance. When a bank is closed, it cannot process deposits, withdrawals, or transfers — including refund deposits. If your tax refund, stimulus payment, insurance refund, or other money is scheduled to arrive on a bank holiday or the day after, the deposit will land on the next business day instead.

The delay is not a problem with your refund itself. The sending agency (the IRS, your state, your insurance company, or another payer) still sent it on time. The bank simply cannot receive and post it until it reopens. You will see the money in your account on the first business day after the holiday.

Bank holidays happen on fixed dates each year, though the actual day off sometimes shifts. For example, if Independence Day (July 4) falls on a Saturday, many banks observe the holiday on Friday instead. Knowing which days are coming helps you understand why a refund you expected on a certain date arrives a day or two later.

Key Takeaways

  • The federal government recognizes ten bank holidays per year, and banks close on those days, which pauses refund processing.
  • A refund scheduled to land on a bank holiday will arrive on the next business day the bank is open.
  • Bank holidays fall on the same dates each year, but when a holiday lands on a weekend, the observed day shifts to Friday or Monday.
  • Checking the bank holiday calendar before you expect a refund helps you plan for a one- to three-day delay if one falls nearby.

The ten federal bank holidays and when they occur

The federal government recognizes ten holidays when banks must close. These are: New Year's Day (January 1), Martin Luther King 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), Columbus Day (second Monday in October), Veterans Day (November 11), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).

Most of these dates are fixed to a specific calendar day. However, some are tied to a specific day of the week — for example, Memorial Day is always the last Monday in May, which means the actual date changes from year to year. This matters because if a fixed holiday like July 4 lands on a Saturday, the bank will observe it on Friday instead, and if it lands on a Sunday, the bank will observe it on Monday.

Not every bank closes on every federal holiday. Some banks remain open on certain holidays, particularly if they operate in states that do not observe all ten. However, the major national banks and most regional banks close on all ten federal holidays. If you use a smaller or regional bank, you can call or check their website to confirm which holidays they observe.

How bank holidays delay refund deposits

When you receive a refund by direct deposit, the sending agency (such as the IRS or your state tax department) initiates the transfer on a specific date. The money moves through the banking system and lands in your account on the date the agency calculated. However, if that date is a bank holiday, your bank cannot receive the deposit because it is closed.

The refund does not disappear or get lost. It sits in a queue at the Federal Reserve or the sending agency's bank until your bank reopens. On the first business day after the holiday, your bank processes the deposit and the money appears in your account. The entire delay is usually one to three business days, depending on how many holidays or weekends fall in a row.

For example, if the IRS schedules your refund to arrive on Friday, July 4 (Independence Day), and your bank observes the holiday on Friday, the deposit will not post until Monday, July 7. If July 4 falls on a Thursday and your bank observes it on Thursday, the refund will arrive on Friday instead — no delay at all.

Checking the bank holiday calendar before you expect money

The easiest way to avoid confusion is to check the federal bank holiday calendar before you expect a refund. The U.S. Office of Personnel Management publishes the official list each year, and it is available on their website. You can also find it on the Federal Reserve's website or by searching "federal bank holidays" and the current year.

Once you know when the holidays fall, count forward from the date your refund is supposed to arrive. If a holiday lands on that date or within one business day after, add one to three days to your expected arrival date. This is especially important around Thanksgiving (late November), Christmas (December 25), and New Year's (January 1), when multiple holidays or weekends can stack up and create longer delays.

If your refund status shows a specific deposit date and you see a bank holiday nearby, you can contact the sending agency (the IRS, your state tax department, or your insurance company) to confirm whether they have already accounted for the holiday. Most do, but it never hurts to ask.

What to do if your refund does not arrive after the holiday passes

If the bank holiday has passed and your refund still has not arrived, the delay is likely something other than the holiday. Check your refund status using the tracking tool provided by the sending agency. The IRS offers "Where's My Refund?" on their website, most states have their own tax refund tracker, and insurance companies usually provide a claim status page.

If the status shows your refund was sent but has not posted to your account, contact your bank directly. Ask them to search for the incoming deposit using the refund amount and the date it was supposed to arrive. Sometimes a deposit gets held or routed to the wrong account by mistake, and the bank can locate it and correct the problem.

If the status shows your refund has not been sent yet, contact the sending agency. Delays can happen for reasons unrelated to bank holidays — missing information on your return, address mismatches, or processing backlogs. The agency can tell you the actual reason and give you a new expected date.

Bank holidays versus state holidays

Federal bank holidays are not the same as state holidays. Some states observe additional holidays that federal banks do not, and some states do not observe all ten federal holidays. However, for refund purposes, what matters is whether your bank is closed, not whether your state is closed.

Most banks follow the federal holiday calendar, so a state-only holiday will not delay your refund. However, if you use a bank based in a state that does not observe one of the ten federal holidays, that bank may remain open on that day, and your refund could arrive on schedule. The safest approach is to check your specific bank's holiday schedule on their website or by calling them.

Planning around holidays when you need money urgently

If you are counting on a refund to arrive by a specific date and a bank holiday falls nearby, you have a few options. First, you can request your refund by check instead of direct deposit, though this usually takes longer overall and does not solve the problem if the check arrives on a holiday. Second, you can contact the sending agency and ask whether they can adjust the deposit date to avoid the holiday — some will, though others cannot.

Third, you can plan ahead by requesting your refund earlier in the year if possible, before the major holiday clusters. For example, filing your tax return in early February means your refund is more likely to arrive before Presidents' Day and Memorial Day. This is not always an option, but when it is, it reduces the chance of a holiday delay.

If you absolutely need the money by a certain date and a holiday is in the way, ask the sending agency what the latest you can request the refund and still receive it before your deadline. They can tell you whether it is possible and what steps to take.

Frequently Asked Questions

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

It depends on which day your bank observes the holiday. If the holiday is on Saturday, most banks observe it on Friday, so your refund would arrive on Friday if it was scheduled for Saturday. If your bank observes it on Monday instead, the refund would arrive on Monday. Check your bank's holiday schedule to be sure.

Can I request a refund on a bank holiday?

You can submit a request for a refund on a bank holiday, but the sending agency will not process it until the next business day. For tax refunds, you can file your return on a holiday, but the IRS will not begin processing it until the next business day. The holiday does not prevent you from submitting; it only delays processing.

Do credit unions observe the same bank holidays as banks?

Most credit unions observe the same ten federal bank holidays as banks, but some do not. A few credit unions remain open on certain holidays or observe different holidays based on their location or membership. Contact your credit union directly to confirm which holidays they observe.

If two bank holidays fall in a row, how long will my refund be delayed?

If two holidays fall in a row (for example, if one is on Thursday and the next is on Friday), your refund will be delayed until the following Monday, which is a three-business-day delay. If a holiday falls on Friday and the following Monday is a regular business day, the delay is only one business day.

Will my refund arrive faster if I request it before a bank holiday?

No. The sending agency processes refunds on their own schedule, not based on when you request them. Requesting earlier may help you receive your refund before the holiday if the processing time is short enough, but requesting it does not speed up the actual processing. Plan your request based on when you need the money and how long processing typically takes.