In the context of personal finance as well as in the world of business, bank holiday days play an important role. They have the potential to affect the financial institutions, businesses and the management of individual bank accounts since the flow of funds could slow. The usual bustle of the banking industry stops to give employees a well-deserved break, and impacting the timeline of transactions.
In this post, we will discuss the significance of bank holidays and how they could impact your finances in order to be prepared for these important dates.
What is a bank holiday?
Bank holidays are day that banks and financial institutions are closed to celebrate a national holiday. In the United States, the Federal Reserve is a key player in setting the bank holidays, and making sure they are aligned with national holidays in order to guarantee a nationwide celebration.
How do bank holidays work?
On holidays, banks stop their regular operations, halting services like in-person bank and frequently putting off transaction processes. In spite of the closures physically customers have access to a variety of services through the internet banking and can enjoy an element of financial management on a holiday.
The transactions you make on a bank holiday could be delayed because these days aren’t considered to be business days. To make it easier to navigate these closures you should be prepared for delay and schedule your financial tasks including scheduling bills prior to the date to avoid any disruptions to your finances.
List of Official Bank Holidays in the United States
Below is a complete list of officially recognized bank holidays across the United States, providing a an insight into the history and significance behind each day.
Martin Luther King Jr. Day
It is a day to honor civil rights activist Martin Luther King Jr. This day is a time for people to think about the progress taken in fighting discrimination based on race. The holiday is observed on the third Monday in January, which means an extended weekend to many.
Washington’s Birthday (Presidents Day)
Officially, it’s a celebration of George Washington’s birthday it’s generally referred to as Presidents Day, where Americans commemorate all the leaders who have steered the nation. The day falls on the third Monday in February, it offers an opportunity to learn about the history and the lives of U.S. presidents.
Memorial Day
On the final Monday of May Memorial Day is observed to remember and honor the soldiers who sacrificed their lives for the sake of our nation. It is a day of reflection and thanksgiving and acknowledges the sacrifices they made for our country’s freedom.
Juneteenth
This day is dedicated to the freedom of enslaved African Americans on June 19 1865. It is an important event in past, symbolizing freedom as well as the end of slavery in the United States.
Independence Day
The 4th July Independence Day marks the day that the Declaration of Independence was adopted which declared the nation’s independence from British rule. It is an occasion to celebrate our nation’s independence and is marked by fireworks parades, barbecues, and parades.
Labor Day
The first Monday in September, Labor Day honors the American labor movement and the achievements and contributions of workers to the development and accomplishments of the nation.
Columbus Day
Columbus Day, falling on the second Monday of October commemorates Christopher Columbus’s arrival on the continent of Americas on the 12th of October 1492. This is a time of celebration to remember the findings and the historical significance of this historic event.
Veterans Day
The holiday is observed on November 11th. Veterans Day honors military veterans who have served in the United States Armed Forces, stressing the unwavering spirit and dedication of military personnel.
Thanksgiving Day
Thanksgiving, celebrated on the fourth Thursday in November, is a time to gather with family and friends to get together and thank God for the blessings of the previous year. It is a custom that dates back to the Pilgrim’s meal together with Native Americans.
Christmas Day
In the spirit of Christmas, Christmas Day is celebrated on December 25 the day that Christians celebrate the birth of Jesus Christ. In general, the holiday is a time to give and receiving happiness with family and friends. This holiday is the sole holiday on the bank associated with the religious holiday of the day, but also highlights the significance of the “holiday season” as a secular time of celebration in the U.S.
Certain holidays, such as Martin Luther King Day and Labor Day, fall on certain dates of the week. Other holidays, such as Christmas and Fourth of July are celebrated on certain dates. If these holidays are on a Saturday banks will close on the preceding Friday, allowing the possibility of a three-day holiday for many. If the holiday falls on Sunday, banks will be closed on the Monday following.
How Bank Holidays Affect Consumers
Bank holidays, though they are a time of reflection and celebration, undoubtedly impact the day-to-day operations and services offered by financial institutions. Below, we examine how these holidays impact consumers:
Transaction Delays
On a holiday bank the transactions that are initiated may take longer to process until following business day. This includes check clearances as well as online transfers, which could lead to a delay in financial planning.
Bill Payments
Bill payments scheduled for the future may experience delays if a holiday occurs on the due date. It is recommended to be prepared and pay your payments prior to the due date to avoid delays or fees due to late payments.
In-Person Services
The majority of banks shut their offices on holidays, which means that the services in person, such as consultations or accessing security deposit boxes will not be offered.
Online Banking
Despite physical closings online banking services are still accessible users to check their balances and transfer funds as well as complete other banking transactions without interruption. However, transfers of funds may delay until the next business day.
Customer Support
Support for customers may be inaccessible or not available on bank holidays. In emergency situations it is recommended to look up the online support services that banks provide through their sites.
FAQs
Are all banks closed on bank holiday?
The majority of banks observe federal holiday and shut the physical branch. However, smaller credit unions and banks might decide to stay open. It is recommended to inquire with your local financial institution to find out their schedule for the holidays.
Can I still use ATMs during the day of a bank holiday?
ATMs are usually operating during bank holidays, and offer an easy method of carrying out vital transactions like withdrawals of cash and balance enquiries.
Do bank holidays affect direct deposits?
The timing of bank holidays can affect the process of direct deposit. If the bank holiday falls close to the day you’re expecting direct deposits the deposit may not be completed until following business day.
What happens if a bank holiday falls on a weekend?
If the bank holiday falls on an unplanned weekend, it’s usually observed on the next weekday, which is usually the previous Friday or the next Monday which ensures that employees still get an off day.
How can I plan my finances around bank holidays?
To prevent interruptions to your financial transactions be aware of banking holidays and schedule your transactions in line with the holiday. Online banking is a great option to control your financial situation effectively on bank holiday days.
