ATM
ATMs and online banking remain available, but transactions will be processed on Tuesday. (PHOTO: Ali Mkumbwa/Unsplash)

If your usual payday falls on a Monday, you may need to wait an extra day to access your wages this week.

Martin Luther King Jr. Day falls on Monday, 19 January 2026, resulting in the closure of the Federal Reserve and the Automated Clearing House (ACH) network for 24 hours. As a result, direct deposits, wire transfers, and electronic bill payments across the country will be frozen until Tuesday morning.

According to the Federal Reserve Bank of St. Louis, the Federal Reserve observes 11 designated bank holidays each year, with MLK Day being the first Monday closure of 2026. When the Fed is closed, banks are unable to process or settle electronic transactions.

Full List of Banks Closed on 19 January

The following major financial institutions have confirmed branch closures for Martin Luther King Jr. Day, according to CBS8 News:

Credit unions will also observe the federal holiday. Customers needing in-person services should visit branches before the weekend or wait until Tuesday, 20 January.

Why This Matters for Your Wallet

The impact goes well beyond minor inconvenience. Approximately 93% of American workers receive their pay via the ACH Network, according to Nacha, the organisation overseeing electronic payments. When the Federal Reserve is closed, this network halts processing entirely.

For many households, even a brief delay can have serious consequences. A survey by Nacha found that 78% of respondents said it would be 'somewhat difficult' or 'very difficult' to meet financial obligations if their paycheck was delayed by just one week. A separate study by PayrollOrg placed that figure at 78% as well.

Payroll provider OnPay warns that employers with Monday paydays should have submitted payroll by Wednesday, 14 January, to ensure employees receive their wages on time.

Automatic bill payments scheduled for 19 January—including mortgage instalments, car loans, and credit card payments—will not process until the following business day. Those with due dates on the holiday risk incurring late fees if their accounts lack sufficient funds when processing resumes.

What Still Works During the Closure

While branch offices remain closed, banks will continue operating ATMs and online banking services throughout the holiday. Customers can check balances, transfer funds between accounts at the same institution, and deposit cheques via mobile apps.

However, any transactions requiring Federal Reserve processing will not complete until Tuesday at the earliest. The New York Stock Exchange and NASDAQ will also suspend trading for the day, according to NBC New York.

A Historic Anniversary

This year marks the 40th anniversary of the first nationwide observance of MLK Day in 1986. The holiday commemorates civil rights leader Martin Luther King Jr., who campaigned against racial segregation in the 1960s and delivered his famous 'I Have a Dream' speech in 1963. Former President Ronald Reagan signed the holiday into law in 1983.

Mail services will also be disrupted. The United States Postal Service will suspend regular deliveries, although Priority Mail Express will remain operational. UPS will suspend regular pickup and delivery services, though many UPS Store locations will remain open. FedEx will operate with modified services. Major retailers including Walmart, Target, and Costco will maintain their usual hours.

Planning Ahead

Financial advisors recommend completing essential banking transactions before the weekend. Those expecting direct deposits should confirm with their employers whether payroll was processed early.

The next federal bank holiday falls on Monday, 16 February, for Presidents' Day.

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