If you deposit a check when the Federal Reserve is closed, you may experience a delay in the availability of funds. A Fed holiday can also cause an invoice to be overdue if the processing date is a Fed holiday. A Fed holiday could also mean your local branch is closed.
These are the Federal Reserve System holidays from 2021 to 2023:
|Federal Reserve System Holidays||2021||2022||2023|
|New Years Day||January 1st||January 1st*||January 1st**|
|Martin Luther King Jr Day||January 18||January 17||January 16|
|President’s Day||February 15||the 21st of February||February 20|
|Memorial day||May 31st||May 30||May 29|
|Independence Day||4th July**||4th July||4th July|
|Labor Day||September 6||September 5||September 4|
|Columbus Day||October 11||October 10||October 9|
|Veterans Day||November 11th||November 11th||November 11th*|
|Thanksgiving||25 november||24 november||23 november|
|Christmas||Dec 25 *||25 Dec **||December 25th|
* The Board of Governors is closed on December 24, 2021, December 31, 2021 and November 10, 2023.
** The Board of Governors is closed on July 5, 2021, December 26, 2022 and January 2, 2023.
Note: The Board of Governors is closed for the inauguration day on January 20, 2021.
Source: Federal Reserve
Most banks close on Federal Reserve holidays
Rose Oswald Poels began working for the Wisconsin Bankers Association over 20 years ago. At the time, Oswald Poels, who is now the group’s chairman and CEO, said many banks were open on holidays like Martin Luther King Jr.’s birthday, Columbus Day and Veterans Day.
“In today’s world it’s very different,” says Oswald Poels.
More and more banks are choosing to shut down on Federal Reserve System holidays, such as Washington’s Birthday or Columbus Day. Oswald Poels says some banks may take advantage of the closure on a weekday to train all staff or volunteer in the community.
Banks can open on a public holiday in the Federal Reserve system
A bank can choose to be open on a Federal Reserve holiday. Transactions will generally be processed the same as a weekend.
For example, if you sign the documents to send a domestic wire transfer to your bank on a Saturday morning, that transfer will only be processed on Monday morning at the earliest, assuming Monday is not a Federal Reserve holiday. . The same is true if you deposit a check at a bank (or online or at an ATM) on a holiday. If your bank is open on one of the Federal Reserve System holidays, the Fed will likely reopen the next business day. Automated Clearing House (ACH) network transactions are also not processed on a holiday or weekend.
The Fed is closed on the second Monday in October for Columbus Day. So if you deposit a check into your bank account on the Saturday before that holiday, the sooner that check will be fully available will usually be on Tuesday if the bank has same day availability.
If the bank doesn’t do this, “it wouldn’t be until Wednesday that your money would really be available to you,” says Oswald Poels.
Online accessibility on Federal Reserve holidays
Online access should be the same on a public holiday as on any other day or night. Of course, this assumes that the bank’s site is not down due to maintenance or some other issue.
“If you do online banking, if you use remote deposit capture through your phone to make deposits, all the technological functions are still working,” says Oswald Poels. “So you can do these transactions. But the effect of what that means (Fed holidays) is another story.
While you can deposit a check to your mobile on any of these holidays, chances are the transaction won’t be processed until the next business day at the earliest.
Typically, you can also open a bank account online on a public holiday in the Federal Reserve system, as you can on a night or on a weekend. This includes checking accounts, savings accounts, money market accounts or CDs.
Other public holidays and bank holidays
Banks are usually open on Black Friday, Christmas Eve, and New Years Eve, although your bank may decide to close earlier on one of these days.
“Everything is working normally in the system (nowadays) also because the Fed is also open,” said Oswald Poels.
Good Friday is another day when the Federal Reserve is open and banks usually are too. This holiday gets a little confusing as it is a day when the New York Stock Exchange (NYSE) is closed. Columbus Day is the reverse since the NYSE is open and the Federal Reserve System is closed.
Invoice Paid Around Federal Reserve Holidays
It is always best to pay bills a few days in advance. That way, if a holiday or weekend escapes you, the bill should be paid on time.
“If you’ve set up automatic bill payment from your account, hopefully most people organize bill payment so that the date the transaction is initiated isn’t literally the very last due day of. the invoice ”, explains Oswald Poels.
If your automatic bill payment date falls on a holiday or weekend in the Federal Reserve System, that transaction will not be processed until the next business day.
“Make sure you leave enough leeway between the actual due date and when you initiate the bill payment request,” says Oswald Poels.