Federal holidays can affect banking. This may delay processing of transactions, availability of deposits, and other services. Knowing this helps you manage your finances and deal with any issues. In this article, learn how holidays may affect banking, and get tips for managing your finances during this time.

Delayed Transactions: On holidays, most banks and financial institutions are closed. This means that transactions can't be processed. This includes wire transfers, ACH (Automated Clearing House) transactions, and check clearing. So, if you start a transaction on or just before a holiday, it may take longer than usual to complete.

Longer Clearing Times: Transactions that require manual processing, like international transfers or large amounts of money, may face more delays. This is due to the backlog of transactions that can add up during the holiday.

Delayed Deposit Availability: If you deposit money on a federal holiday, such as through direct deposit, mobile deposit, or ATM deposit, it may not be processed until the next working day. Therefore, the funds may not be available for immediate use.

ATM and Mobile Deposits: During the holidays, you can make deposits using ATMs or mobile banking apps. However, since the banks are closed, ‌deposits won't be processed until they reopen. This may mean you can't access your money quickly.

Check Clearing: When you deposit a check near a bank holiday, it may take more time to clear. This means you'll have to wait longer before you can access the money.

Plan Ahead: - Plan your money needs before federal holidays. - Make sure to complete important things like paying bills or sending money well before the holiday.

Use Online Banking: Use online banking to check your accounts and perform basic transactions that don't require immediate processing. This includes scheduling payments or transfers for the next business day. It's important to note that on federal holidays, banks can perform transactions, but due to the Federal Reserve being closed, the transaction likely won’t post to a bank account until the following day.

Be Aware of Processing Times: Understand the typical processing times for your bank, especially around holidays. Knowing when transactions are likely to be delayed can help you plan accordingly.

Maintain a Buffer: To avoid problems like overdrafts or missed payments, keep some extra money in your checking account. This can help cover any unexpected delays when your deposits become available.

This year, there are 11 bank holidays set by the Federal Reserve.

Bank holidays can affect how banks work, causing delays in processing transactions and making deposits available. To manage these changes, use online banking tools, be aware of processing times, and have some extra money saved to help you through these times.