Yes, January 1 is a federal bank holiday. Nearly every bank and credit union branch in the United States closes that day, the Federal Reserve’s main payment systems pause, and interbank transfers sit in a pending state until the next business day. In 2026, New Year’s Day falls on a Thursday, so branches close January 1 and reopen Friday, January 2.
What’s Closed and What Still Works
New Year’s Day is one of eleven legal public holidays under federal law.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays The Federal Reserve closes its administrative offices and payment processing operations,2Federal Reserve. K.8 – Holidays Observed by the Federal Reserve System 2026-2030 and because the Fed handles settlement between banks, commercial banks close their branches too.
Digital access, though, keeps working. ATMs are available for cash withdrawals, balance checks, and deposits. Mobile apps and online banking portals let you view balances, review transactions, and move money between your own accounts at the same bank, which typically posts right away. Anything that has to travel from one bank to another is a different story.
How the Holiday Affects Your Transactions
The two main systems banks use to move money between each other — the Automated Clearing House (ACH) network and the Fedwire Funds Service — do not run on federal holidays. Fedwire treats every calendar day that isn’t a Fed-observed holiday as a business day, and January 1 is observed.3Federal Reserve Financial Services. Wholesale Services Operating Hours Anything you send through those rails on January 1 waits until the next business day to move.
- Payroll: If direct deposit is scheduled to hit January 1, your bank may credit it a day early (December 31) or a day late (January 2), depending on when your employer submitted the batch.
- Electronic bill payments: A payment scheduled for January 1 won’t leave your account until January 2 at the earliest, which affects when the creditor receives it.
- Wire transfers: Outgoing wires entered on the holiday queue up and process on the next Fedwire business day.
- Paper checks: A check deposited on January 1 is treated for clearing purposes as if deposited on the next business day.
Payment Systems That Don’t Stop
A few newer payment rails run around the clock, holidays included. The Federal Reserve’s FedNow Service operates 24 hours a day, every day of the year, and settles interbank transfers in seconds; it is specifically excluded when other Fed financial services close for a holiday.4Federal Reserve. FedNow Service5Federal Reserve Financial Services. Dates to Remember Your bank has to participate for you to use it, and adoption is still growing. The RTP (Real-Time Payments) network, run by The Clearing House, offers the same around-the-clock availability including holidays, weekends, and after-hours.6The Clearing House. About RTP
Peer-to-peer apps also keep running, with a catch. Venmo’s instant transfer feature moves funds to an eligible bank account or debit card 24/7, 365 days a year.7Venmo. Instant Bank Transfer FAQ A standard Venmo bank transfer takes one to three business days, and holidays are not counted in that window.8Venmo. Standard Bank Transfers FAQ Zelle payments can be sent on the holiday, but settlement between banks can lag when banks limit processing outside standard hours.
ATM Deposits and Regulation CC Hold Times
Under Regulation CC, January 1 is explicitly excluded from the definition of a “business day.”9eCFR. Part 229 Availability of Funds and Collection of Checks (Regulation CC) A deposit made at an ATM on the holiday is treated as if it arrived on the next business day, and hold times start from there.
- Cash at your own bank’s ATM: available by the second business day after the deemed deposit date. A cash deposit on Thursday, January 1, 2026 counts as deposited Friday, January 2, with funds available the following Tuesday.
- Cash or checks at a nonproprietary ATM (one your bank does not operate): available by the fifth business day after the deemed deposit date.
- First $275 of a check deposit: generally available the first business day after the deposit date, unless the deposit was made at a nonproprietary ATM.10Federal Reserve. A Guide to Regulation CC Compliance
If you need money quickly on the holiday, withdrawing cash or using an instant transfer is more reliable than depositing a check at an ATM.
If a Bill or Credit Card Payment Is Due January 1
When your credit card issuer does not accept or receive mailed payments on the due date, a mailed payment that arrives the next business day generally cannot be treated as late. That protection applies to mail. If your creditor accepts electronic or phone payments on the due date, you’re still expected to pay by 5:00 p.m. that day through those channels, even if the issuer doesn’t accept mail.11Consumer Financial Protection Bureau. Regulation Z 1026.10 – Payments
If a creditor fails to credit an on-time payment through no fault of yours, it has to reverse any finance charges or late fees imposed during that billing cycle. The cleanest way to avoid the issue is to pay electronically on December 31.
When New Year’s Day Falls on a Weekend
This isn’t a concern for 2026, but it matters in future years. When the holiday falls on a Sunday, all Federal Reserve offices close the following Monday, and most commercial banks do the same.2Federal Reserve. K.8 – Holidays Observed by the Federal Reserve System 2026-2030 When it falls on a Saturday, Federal Reserve Banks stay open the preceding Friday, but the Board of Governors closes that Friday, and federal employees on a Monday-Friday schedule treat the Friday as the holiday.1Office of the Law Revision Counsel. 5 USC 6103 – Holidays Private bank policies vary in that case, so check with your bank if a future January 1 lands on a Saturday.