Yes, January 1st is a federal bank holiday in the United States
January 1st — New Year's Day — is a federal holiday, which means most banks close for the day. You will not be able to visit a branch, use a teller, or conduct in-person business. However, you can still use ATMs, online banking, and mobile apps to check balances, transfer money, or pay bills.
The federal government observes New Year's Day, and banks follow the same calendar. When a federal holiday falls on a weekday, banks shut down entirely. If January 1st lands on a Saturday or Sunday, banks are already closed, so the observed holiday may shift to the nearest weekday — usually the Friday before or the Monday after.
Key Takeaways
- Banks close on January 1st because it is a federal holiday, but ATMs and online banking remain available.
- If January 1st falls on a weekend, the observed holiday moves to the nearest weekday, and banks close on that day instead.
- Deposits made on a bank holiday may not post until the next business day, even if you use an ATM or mobile app.
- Wire transfers and other time-sensitive transactions should be sent before a holiday to avoid delays.
What you can and cannot do on January 1st
Most banking services stop on January 1st if your bank observes the federal holiday. You cannot visit a branch, speak to a teller, explore for a loan, or resolve account issues in person. Customer service phone lines are usually closed as well.
Digital banking continues without interruption. You can log into your online account, use your bank's mobile app, move money between your own accounts, pay bills electronically, and check your balance at any time. ATMs work normally — you can withdraw cash, deposit checks (though the deposit may not post until the next business day), and transfer funds between accounts if your bank offers that service at the ATM.
Time-sensitive transactions like wire transfers are worth planning around. If you need to send a wire on or near January 1st, send it before the holiday. Wires initiated on a bank holiday typically process the next business day, which can matter if you have a important date.
When January 1st falls on a weekend
If January 1st is a Saturday, most banks observe the holiday on Friday, December 31st. If January 1st is a Sunday, the observed holiday is usually Monday, January 2nd. Banks close on the observed date, not the actual calendar date.
This matters for planning. If you need to deposit a check or handle something in person, know which day your bank will actually be closed. You can call your bank's main number or check their website to confirm the observed holiday date for that year.
How deposits and checks work around the holiday
Checks deposited on January 1st or the day before a bank holiday do not clear when ready. Even if you use a mobile app or ATM to deposit a check, it will not post to your account until the bank reopens. The holiday pauses the clearing process.
If you need funds quickly, deposit checks before the holiday. If you deposit on January 1st itself, expect the deposit to show up on January 2nd at the earliest — sometimes later depending on when the check was written and which banks are involved.
Direct deposits scheduled for January 1st usually arrive on time because they are electronic and do not require the bank to be open. However, if your employer processes payroll on January 1st and the bank is closed, the deposit may arrive on January 2nd instead. Check with your employer if you are unsure.
Planning ahead for January 1st
If you know you will need cash or need to move money around the New Year, handle it before December 31st. Withdraw cash from an ATM, pay bills online, or transfer money between accounts while the bank is open. This prevents you from being caught short if something comes up on January 1st.
If you have a time-sensitive payment or transfer, send it at least one business day before January 1st. Do not wait until December 31st if that is a Friday — send it on Thursday or earlier to be safe.
If you are expecting a check or payment around the New Year, remember that it may arrive a day later than usual because of the holiday. Plan your budget with that delay in mind.
Frequently Asked Questions
Can I use my debit card on January 1st if the bank is closed?
Yes. Your debit card works at stores, ATMs, and online merchants even when the bank is closed. The bank holiday does not affect card transactions — only in-person branch services and some backend processing like check clearing.
Will my automatic bill payments go through on January 1st?
Usually yes. Automatic payments scheduled for January 1st typically process on time because they are electronic. However, if your payment is scheduled to come out of a specific account and something goes wrong, you will not be able to call the bank to fix it until January 2nd.
What if I need to dispute a transaction on January 1st?
You cannot reach customer service by phone on January 1st, but you can often report a dispute through your online account or mobile app. Document the issue and submit it through the app — the bank will investigate when it reopens on January 2nd.
Do credit unions close on January 1st?
Most credit unions observe the same federal holidays as banks, so yes, they close on January 1st. However, some credit unions have different holiday schedules, so check with your credit union directly to be sure.
If I deposit a check at an ATM on December 31st, will it post before January 1st?
Probably not. ATM deposits typically post the next business day, which would be January 2nd. If you need the money to be available on January 1st, deposit it earlier in the week.