How Are Holidays Classified?
Not all holidays are created equal. It's important to distinguish between them:
- Federal Holidays: Designated by the U.S. government. Non-essential federal government offices are closed. Stock markets and banks usually close, but private businesses may remain open.
- Bank Holidays: Specific days when financial institutions are closed. This affects direct deposits, wire transfers, and check clearing processing times.
- Floating Holidays: Some companies offer employees paid days off that can be taken at their discretion or on specific non-federal holidays (like Good Friday).
What Is the History of US Federal Holidays?
The concept of "Federal Holidays" dates back to 1870, originally designed for federal employees in the District of Columbia.
- The First Four (1870): New Yearβs Day, Independence Day, Thanksgiving, and Christmas were the original paid holidays granted by Congress.
- Labor Day (1894): Created after the Pullman Strike to appease American workers.
- MLK Day (1983): The most recent addition (until Juneteenth), signed by President Reagan, though it took until 2000 for all 50 states to officially observe it.
- Juneteenth (2021): The newest federal holiday, commemorating the end of slavery in the United States.
The "Monday Policy"
Need to know if you get a day off? When a federal holiday falls on a Saturday, it is typically observed on the preceding Friday. When a holiday falls on a Sunday, it is usually observed on the following Monday. This ensures employees still receive their paid time off.
When Are the Major Holidays?
Memorial Day (Last Monday in May)
Honors military personnel who have died in the performance of their military duties. Often marks the unofficial start of summer.
Labor Day (First Monday in September)
Celebrates the contributions of workers to the country's strength and prosperity. Marks the unofficial end of summer.
Thanksgiving (Fourth Thursday in November)
A harvest festival celebrating gratitude. The following day (Black Friday) is a major shopping day but not an official federal holiday.
How to Plan Long Weekends?
Strategic vacation planning allows you to maximize your time off. "Long weekends" usually occur when a holiday falls on a Monday or Friday.
Travel Tip: Airports are busiest on the Friday before and the Monday (or Tuesday) after a holiday weekend. If you can, fly on the holiday itself (e.g., Thanksgiving morning) for cheaper tickets and fewer crowds.
How Do Holidays Affect Banking?
Bank holidays can disrupt your cash flow if you aren't careful. Use our Loan Simulator to plan big financial moves around these dates. Here describes what stops and what keeps moving:
- Wire Transfers (FedWire): Closed. Transfers will not process until the next business day.
- AC Transfers (Direct Deposit): Paused. Paychecks due on a holiday are usually deposited the day before. Check our Mortgage Calculator if you have payments due.
- Check Clearing: Paused. A check deposited on a holiday won't start processing until the next day.
- ATMs & Online Banking: Open 24/7. You can still move money between your own accounts or withdraw cash.
Frequently Asked Questions
Are banks open on Good Friday?
Good Friday is a state holiday in several states but not a federal holiday. Most major banks and the stock market are open, but some community banks and credit unions may close or have modified hours.
How are holiday dates determined?
Some holidays like Christmas (Dec 25) and Independence Day (July 4) are "fixed date" holidays. Others, like Thanksgiving and Martin Luther King Jr. Day, are "floating date" holidays defined by rules (e.g., "the fourth Thursday").
Do stocks trade on Columbus Day?
This is a rare exception where the bond market closes, but the stock market (NYSE, NASDAQ) typically remains open. Checking specific exchange schedules is recommended.
How does a Leap Year affect holidays?
A Leap Year (29 days in February) shifts the day of the week for fixed-date holidays by two days instead of the usual one day. This can affect long weekend planning.
Planning Tools
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