Why Are Banks and Credit Unions Closed on Federal Holidays?



1 min. read

By: FCU Team

Ever wonder why banks and credit unions are closed on certain holidays while schools and businesses remain open? It’s simple! Financial institutions like Florida Credit Union are closed because the Federal Reserve is closed.

What is the Federal Reserve?

The Federal Reserve, or “the Fed,” is the central bank of the United States. It was created in 1913 in response to a series of financial panics. Since then, it has promoted the U.S. economy and public interests by conducting monetary policy, consumer protection and more. You may dive deeper into the Federal Reserve and its role here.

Federal holidays apply to the Federal Reserve as they would any government agency, and there are 11 recognized holidays throughout the year.

Why Does the Federal Reserve Matter to Financial Institutions?

Banks and credit unions perform services that involve the Federal Reserve. Whether that’s ACH (Automated Clearing House) transactions (mobile check deposit, peer-to-peer transactions, etc.) or wire transfers, the Federal Reserve’s closures due to federal holidays mean financial institutions are unable to perform the aforementioned services.

To give you an idea to the frequency of these kinds of transactions, there were nearly 27 billion ACH transactions in 2020! Because these services are bottlenecked, most financial institutions like FCU choose to close on these holidays, opting to resume service the following day.

With approaching federal holidays, we thought our members may be curious as to why school is in-session while many financial institutions are closed.

Which Are the Federal Holidays?

Below are the 11 federally recognized holidays observed by the Federal Reserve (and Florida Credit Union by extension):

  • New Year’s Day
  • Martin Luther King Day
  • Washington’s Birthday
  • Memorial Day
  • Juneteenth National Independence Day
  • Independence Day
  • Labor Day
  • Columbus Day
  • Veterans Day
  • Thanksgiving Day
  • Christmas Day

To see a current list of FCU holiday closures, visit our holiday schedule page on our website.

Service on the Go

Don’t forget that Florida Credit Union members are still able to access their accounts and make payments through online and mobile banking in the event our branches are closed. Members are also able to take advantage of Info 24, our self-guided and voice-response phone system. Verify ATM deposits and withdrawals, obtain loan information and make loan payments with this easy to use option.