How do bank holidays affect direct deposit and other transactions?

An extra day to sleep in. A chance to hit the road for a three-day trip. Some additional time to complete projects around the house. Often, bank holidays mean the opportunity to enjoy a long weekend. But before you do, it’s a smart idea to consider any upcoming banking transactions that you may be counting on. 

If you think you’ll need to deposit funds or send someone a payment over a bank holiday, some questions might be top of mind: “How do bank holidays affect direct deposit and other transactions?” or “How can I plan for upcoming bank holidays?” or “When are the bank holidays in the first place?”

Learn what happens to transactions over bank holidays and how to plan around them so you can enjoy a stress-free long weekend.

When are the bank holidays?

Every bank in the United States, whether brick-and-mortar or online, observes bank holidays. Currently, there are 11 bank holidays, which are designated by the Federal Reserve. The newest bank holiday is Juneteenth, which became a federal holiday in 2021.

“Most banks will follow the same holiday schedule,” says Eric Rosenberg—financial writer, speaker, and founder of ericrosenberg.com. He adds that it’s possible that some banks observe additional holidays as well.   

These are the current official bank holidays in the United States:

• New Year’s Day                                                                     
• Martin Luther King Jr. Day
• Washington’s Birthday (Presidents Day)
• Memorial Day
• Juneteenth National Independence Day                                
• Independence Day                                                                 
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving Day
• Christmas Day                                                                                   

Although all banks observe bank holidays, not all banks physically close their doors during them (though many do). There are also different nuances for bank holidays that fall on a weekend. For instance, if a bank holiday falls on a Saturday, brick-and-mortar banks might be closed on the preceding Friday in observance of the holiday. If the holiday falls on a Sunday, the bank may be closed the following Monday.

For online banks like Discover, observances for holidays that fall on a weekend might look a little different. For instance, at Discover, if a bank holiday falls on a Saturday, it’s business as usual on Friday. But if the holiday falls on a Sunday, the bank will observe the holiday on the following Monday and Discover won’t process any transactions until Tuesday. Note that Discover’s 24/7 customer service will always be available across weekends and holidays.

As you can see, while these bank holidays may be a chance to kick back and relax, you should be aware of the impact they can have on your financial transactions.

Do holidays affect direct deposit?

There are a handful of common banking transactions that are affected by bank holidays. If you’re wondering, “Do holidays affect direct deposit?” the short answer is yes. Direct deposit is among the transactions that are delayed due to bank holidays. Learn more about these financial transactions and how they’re affected:

ACH transfers

An Automated Clearing House (or ACH) transfer is an electronic movement of money from bank to bank. Direct deposit is one type of ACH transfer. For example, if you usually get your paycheck deposited into your checking account every other Friday—and one of those paydays falls on a bank holiday—your money could be stuck in processing limbo until the next business day.

ACH transfers are also used for direct payments. “If you are sending an ACH auto-payment for a credit card or a utility bill, that would also be delayed,” Rosenberg says.

Wire transfers

Wire transfers are another way of electronically moving money between financial establishments. These are commonly used during the homebuying process. When purchasing a home, funds must be transferred within a specific time frame, Rosenberg says, but a bank closure would prevent those wired funds from processing until the next business day.

Mobile check deposits

One of the great perks of online banking is the ability to deposit checks with your mobile phone. It saves you the time and hassle of making your way to the nearest bank branch. But even mobile check deposits can’t work their magic over a bank holiday: While you can initiate a mobile check deposit, it won’t be processed until the next business day.

Transfers between banks

If you want to send money from one bank to a different one, you should note that those types of transactions can also be held up over a bank holiday. But if you want to transfer funds internally within the same bank—for example, between your savings account and your checking account—those will process over bank holidays.

How can I plan for bank holidays?

Planning ahead can help you avoid the delays that bank holidays can cause.

“If you are ever worried about overdrawing your account or if you keep a low balance, it’s very important to think ahead about bank holidays or any other time your regular cashflow might be interrupted or changed,” Rosenberg says.

A lot of people will wait until a holiday has arrived to consider whether it’s a bank holiday, but there’s a better way. Rosenberg recommends jotting down the holidays in your planner or on your calendar. That way, you won’t experience any confusion over what’s a bank holiday and what’s not. Setting alerts or reminders in your digital calendar can help you stay one step ahead. Because some of the holidays fall on different days every year, tracking them in advance is key.

Noting upcoming bank holidays will go a long way toward helping you plan around any disruptions they might cause. To take your preparation a step further, you can also take advantage of the following special services that your financial institution may offer:

Get your paycheck early

See if your financial institution helps you get your paycheck earlier. For instance, with Discover Cashback Debit, you can get your paycheck up to two days early when you set up direct deposit.¹ That way, you can have access to your money even if a bank holiday occurs on a payday.

Schedule bill payments

If you’re banking with an online financial institution, then don’t believe some of the common myths about online banking. It’s usually easy and convenient to schedule bill payments through your bank’s online portal or app—and you can also schedule them early if a bank holiday will interfere with a payment’s due date. Some banks, like Discover, will do the work for you, making sure any recurring bill payments scheduled to be delivered on the bank holiday are delivered the day prior—which can help you avoid any bank holiday-induced late bills.

Sign up for account alerts

If you’re concerned about having enough money in your bank account to cover bills or withdrawals prior to a bank holiday, keep in mind that some banks offer a service that sends email, text, or push notifications about low account balances. “Many banks offer many technical features that will help you stay one step ahead, even if you don’t track every transaction and balance your checkbook,” Rosenberg says.

What’s the best way to prepare for bank holidays?

The best preparation for bank holidays includes setting reminders for upcoming bank holidays, understanding how they will affect your financial transactions, and using your bank’s features and services to your full advantage.

“It’s important to stay thoughtful and keep track of your money the entire year and not just during bank holidays,” Rosenberg says. “Many people who struggle with money ignore the problem, hoping it will fix itself—and it never will. But if you pay attention and plan ahead, you can take the steps to improve your financial situation going forward.”

It’s easier to prepare for bank holidays when your bank account includes lots of convenient, money-saving features. If you haven’t yet, now’s the time to explore the benefits of a no-fee checking account.

Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.

¹Early Pay is automatically available to checking, savings (excluding IRA savings) and money market customers who receive qualifying ACH direct deposits. At our discretion, and dependent on the timing of our receipt of the direct deposit instructions, we may make funds from these qualifying direct deposits available to you up to 2 days early. See our Deposit Account Agreement for more information.