The next time you’re doing errands on a day off, keep in mind that banks have days off too. Bank holidays often coincide with national holidays, which can foil your efforts to complete financial to-dos.
If your branch is closed, does the bank still process transactions on holidays? Keep reading to find out on which holidays banks are closed and how that affects the processing of your transactions.
Which Holidays Are Commonly Observed by Banks?
Banks typically observe the holidays designated by the Federal Reserve Board. On these days, bank and credit union branches are generally closed and payment processing is suspended. Some banks may also close on other holidays, or on additional days surrounding these dates. It’s a good idea to check your bank or credit union’s specific holiday observance schedule.
Here’s a look at federal bank holidays for 2023 (note that holiday-related closures may fall on different days in subsequent years).
- New Year’s Day: Monday, Jan. 2
- Martin Luther King Jr. Day: Monday, Jan. 16
- Washington’s Birthday/Presidents’ Day: Monday, Feb. 20
- Memorial Day: Monday, May 29
- Juneteenth National Independence Day: Monday, June 19
- Independence Day: Tuesday, July 4
- Labor Day: Monday, Sept. 4
- Columbus Day: Monday, Oct. 9
- Veterans Day: Friday, Nov. 10
- Thanksgiving: Thursday, Nov. 23
- Christmas: Monday, Dec. 25
Challenges on Bank Holidays
Bank closures aren’t the end of the world — you can still use your debit and credit cards, check your balance online, and get cash from an ATM. However, you may encounter slower payments to or from your account.
Here’s a closer look at how bank holidays may affect your financial life.
Deposits and Withdrawals May Be Suspended
The Federal Reserve System and the Automated Clearing House (ACH) network can only settle payments when the country’s central bank is open. This can create issues with deposits and withdrawals system-wide, and cause them to be delayed by one business day. ACH payments don’t process on federal holidays or weekends, so if a holiday falls next to a weekend, it can feel like it takes a long time for a payment to process.
Direct Deposits and Payroll Are on Pause
Do banks process payments on holidays? Because direct deposits are often processed by the ACH network, payroll deposits can be delayed due to holiday closures. Payroll delays can be challenging for employees that rely on a consistent payment schedule to pay their bills. In some cases, employers will schedule payments to go out before bank holidays, but they’re not required to do so.
Banks Do Not Typically Process Checks on Holidays
Most banks don’t process checks on holidays. That means a check you deposit at an ATM or via mobile app on a holiday will be treated as if it were deposited the morning of the next business day. So if you deposit a check on a holiday Monday, it will be treated as if it were deposited on Tuesday morning (if it isn’t a holiday), and might not clear until Wednesday or Thursday. On the bright side, any checks you’ve written can’t be cashed yet either.
AutoPay May Be Delayed
If you have autopay set up for certain monthly bills and an automated payment falls on a bank holiday, the bank won’t process that payment until the next business day. This could potentially lead to extra fees if you miss the due date. It can be a good idea to plan ahead for bills that fall on holidays to make sure your payments post in time.
Can You Still Use Your Account During Holidays?
Yes. There are workarounds for conducting basic banking on a holiday. What you can do on holidays:
- Deposit a check or withdraw cash at an ATM
- Deposit checks using your bank or credit union’s mobile banking app
- Get cash back at a store when making a purchase with your debit card
- Schedule money transfers and conduct other online banking (though the results may be delayed by one business day)
Note that some ATM networks that don’t allow check deposits on holidays still allow customers to withdraw cash.
Tips You Can Use to Help During a Bank Holiday
Bank holidays will happen whether we like them or not, but there are some simple actions you can take to lower the nuisance factor.
Be Proactive and Plan Ahead
Consumers and business owners who don’t want to be inconvenienced by bank holidays can plan ahead for them. It can be helpful at the beginning of the year to set calendar alerts a few days before each bank holiday as a reminder that they’re coming up. That way, you can visit your local branch or conduct online transactions a little earlier than usual.
Early Payments
Banks do not process payments on bank holidays. However, if a bank holiday happens to coincide with payday or occurs during the payroll processing window, then businesses can choose to run their payroll early to make sure their employees aren’t waiting longer than they should to get their paycheck.
Businesses may also choose to schedule online payments to their vendors early to ensure they get paid on time.
Pay Bills Online
If a holiday is going to cause you to miss a payment due date, you may be able to accelerate your payment by making a manual online payment. Some service provider’s allow online payment with same-day crediting. To see if this is possible, simply go to the service provider’s website and log in to your account.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
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Are Americans ready to have a holly, jolly consumer Christmas?
As competition for consumers increases with an ever-expanding market, small businesses need to be smart and strategic about attracting customers and closing sales—particularly around the holidays. Data shows that up to 65% of small businesses’ annual revenue was generated during the holidays last year. With that much money on the line, holidays mean big business for small businesses.
But when the busy season of the holidays nears, limited resources and high demand can stretch small businesses to the limit and leave them unsure where to put their time and money. A new Intuit QuickBooks-commissioned survey of 6,500 adults in the US reveals how small businesses can unwrap success this holiday season.
This year, small businesses can look forward to a 42%increase in consumer spending over the holiday season, increasing from $88 billion to an estimated $125 billion. This averages approximately $485 towards what each consumer may have earmarked to shop small this year. Despite economic volatility and a climate where inflation and interest rates continue to fluctuate, shopping small is holding strong with consumers.
What’s driving the increase in small business spending? Work bonuses and savings. More than a third of respondents (34%) expect a bonus this holiday season and of these, more than two-thirds (69%) say this will allow them to spend more money at small businesses. Further, 7 in 10 consumers (70%) shared that they began saving for their holiday gift shopping in September of this year or earlier.
QuickBooks
The spirit of gift-giving is alive and well this holiday season. More than 9 in 10 (94%) consumers plan to buy gifts this holiday season with most buying gifts for children (58%), a spouse (41%), or a parent (40%). On average, consumers will be shopping for gifts for 13 people this year.
And while gifting experiences is a trend that comes and goes, small businesses need not feel that pressure this holiday season. As more time passes from the start of the pandemic, 2 in 5 (43%) consumers say they do not have a preference between presents and experiences and a majority (55%) prefer to gift presents over experiences.
Kerkez/istockphoto
The early kick-off to holiday shopping is still in effect this year. Nearly 1 in 5 (19%) consumers say they’re planning to start shopping before October. Small businesses don’t want to be unprepared for early shoppers and can stay ahead by making sure inventory is available before the busy season and well stocked in November. Two in 5 (41%) consumers say they plan to start shopping in November this year and almost half (48%) of consumers indicate they do most of their shopping in November. Among those planning to shop small this year, Small Business Saturday (November 25) is the most popular day (46%) with Black Friday (November 24) as a close second (43%).
QuickBooks
Bridging the gap between an online and in-person shopping experience could boost sales for small businesses this season—and remembering to advertise sales online. Now more than ever, consumers have a sea of options at their fingertips. And with the peak of the pandemic firmly in the rearview mirror, the appeal of in-person shopping is growing. Data shows that consumer interest in balancing the digital and in-person experience will have a surge this holiday season. Most consumers (43%) plan to shop equally online and in-person for the holidays this year (compared with only 28% who say they plan to shop primarily in-person and 29% who say they plan to shop primarily online). Behind this push? Three in 5 (61%) consumers say they find the best small business deals in-person. When it comes to customer service, consumers are clear: 73% say the option to buy online and pick up in store and home delivery options are more likely to get them to buy from small businesses.
Dragos Condrea/istockphoto
Respondents: 5,905 US adults, age 18+
QuickBooks
Small businesses selling in-person this season should be mindful of keeping crowds from becoming too overwhelming. While holiday cheer should be in the air, many consumers are drained by the shopping demands of the season. Excitement could be waning because a majority of consumers find holiday shopping to be a stressful experience. More than 1 in 2 (57%) consumers say shopping for the holidays is stressful and the biggest contributor to this stress iscrowded stores (67%).
Consumers looking to avoid the stressors of holiday shopping are favoring small businesses. Nearly 3 in 5 (59%) consumers say shopping at small businesses is less stressful than shopping at big retailers. Among these consumers, almost half (49%) expect to spend more at small businesses this holiday season.
QuickBooks
A major factor in supporting crowd control is offering a seamless and fast checkout experience. As shown above, almost two-thirds (63%) of consumers say they’re more likely to buy from small businesses with a physical store if they offer contactless or mobile payments. Digitizing the checkout experience as much as possible and integrating payment solutions that allow consumers to pay the way they want with online invoicing, mobile payment apps, and in-person card readers is good for business.
Adam Yee/istockphoto
Bring in Buy Now, Pay Later for a boost
Small online retailers, particularly those with younger customers, should offer Buy Now, Pay Later (BNPL) for a boost in sales. Providing flexibility and the appeal of no interest rates for shorter terms, BNPL has the potential to attract new customers and retain loyal ones. Three in 5 (60%) consumers plan to use BNPL for holiday shopping this year. Demand for BNPL is higher among younger consumers with 70% aged 18-24 planning to use it for the holidays.
Discounts can make a sale
Small businesses hoping for a successful holiday season can offer discounts and sales as a strategic move. For small businesses with a store, remember to offer discounts both in-store and online. Consumers are doing their research with holiday deals and shipping options top of mind. Almost all (94%) consumers say they compare prices between small businesses and big retailers during the holiday season. Among those who compare prices, 50% say they do so always or often. But most importantly, 51% of consumers say finding a better deal at a bigger retailer or better shipping options (44%) would make them not buy from a small business. Small businesses can leverage an updated website, email marketing, and social media to advertise too-good-to-pass-up deals during this busy season.
Venture into video
Product-based small businesses that sell directly from a website can capitalize on the rise of video. Video has become increasingly important. With small businesses hoping to find new customers and keep current customers coming back, video is an important tool. Search engines, particularly Google, and social media love videos—and so do consumers. Seven in 10 (71%) consumers say they’re more likely to buy a product from a small business’s website during the holiday season if there’s a video showcasing it.
sturti/istockphoto
With a long list of social media apps, it can be hard for small businesses to know where to focus their energies. And while TikTok’s popularity is solidly in place among Gen Z, Facebook is still a major player overall. One third (36%) of consumers say they look to Facebook for gift inspiration, making it top the list of social media platforms for holiday inspiration. This holds true for millennial consumers aged 25-44 as well with almost half (49%) saying they turn to Facebook for gift inspiration.
When it comes to sales, consumers planning to buy from social media rank Facebook (62%) as the top app they’re most likely to purchase from. Instagram (55%) is a close second.
Partner with influencers for more sway with younger customers
The power of the influencer is redefining marketing. For small businesses with a larger base of young customers, partnering with influencers to promote their products and services during the holiday season can have a large return on investment. While 1 in 3 (33%) consumers agree that they’re more likely to buy from a small business if an influencer promotes their products, services, or experiences, among Gen Z consumers aged 18-24, this jumps to 43%. For consumers persuaded by the pull of influencers, 57% said they trust influencers with up to 1 million followers the most.
QuickBooks
Just as data showed last holiday season, customers are eager to support local small businesses this holiday season. For small businesses, leaning into their location and building a community of loyal shoppers could be the key to holiday success. Three in 5 (62%) consumers say they’re more likely to buy from a small business if it’s local. And 2 in 3(68%) consumers say already being part of a small business’s rewards or loyalty program is more likely to make them shop there this holiday season. Donating small business proceeds to charity (38%) is the second biggest pull among consumers.
This article originally appeared on the QuickBooks Resource Center and was syndicated by MediaFeed.org.
QuickBooks
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Featured Image Credit: Prostock-Studio / istockphoto.
