Why Do Banks Close So Early?


Early Closing Hours for Banks

We all wish banks would close late as most businesses do or even open on weekends so we can stroll in and perform transactions or lay complaints. However, that isn’t the case. A typical bank opens by 8–9 am and closes by 4–5 pm, which is quite early if you compare the closing time to other businesses. The strange time banks close may make you wonder, “ why do banks close so early?”

Banks close early for various reasons. First off, they close early due to operating costs. They also close early due to security reasons, and lastly, banks close early because of the availability of mobile banking and ATMs.

Have you ever visited a bank to perform a transaction only to find out they are closed for the day? It happens. Banks are not like other businesses. They usually close early, and I have explained why below. Plus, I also highlighted a few important things about banks and public holidays.

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Why Do Banks Close So Early?

A bank is a financial institution whose main purpose is to accept deposits and initiate loans, although banks may offer other services. There are many types of banks, including commercial banks, consumer banks, investment banks, central banks, and international banks. Banking services that may be helpful to your small business are depository accounts, advisory services, commercial loans, and payment services.

When Are Banks Open?

Banks aren’t open 24/7 like many of us expect them to be. Most bank branches are open Monday through Friday, and some are open on Saturday, often for shorter hours. Generally, United States banks don’t give teller or drive-through services on Sundays. They close their lobbies and drive-through windows on the 11 federal holidays, also known as bank holidays.

Major Banks, other banks in the Federal Reserve System, and the financial markets are all closed on federal holidays, which have been selected by Congress. A non-bank employer also uses these holidays as a guide for when they close but doesn’t often close for all of them.

Also, when a holiday falls on a weekend, it’s hard to know when the federal holiday observance will fall. This practice can result in some confusion over when banks are open. Read on to know when your bank will open and what to do if you need to carry out a transaction when it is closed. Seeking the services of a financial advisor is also a better alternative to many investment-related banking needs, as many of those investments can be automated.

Reasons why banks close early:

Contrary to what some people think, banks don’t close like typical businesses. While the mall down the street may close by 10 pm, banks close by 4–5 pm.

But why? Why do banks close so early?

Banks close early because of operating costs. The more the bank remains open, the more it spends money on its staff salary, security, electricity, etc. In addition, banks close early due to security reasons. As you probably know, bank robbery is on the rise. If banks aren’t open, robbers will find it hard to get inside, unlike when they are open for business.

What Do I Do if My Bank Is Closed?

Fortunately, nowadays we have the internet available. So instead of driving to the bank to complete a transaction, you can log into your bank account via your mobile device. There, you can transfer money around between accounts, set up deposits, check your balances, and more.

Online and mobile banking will allow you to carry out most transactions immediately. Since the United States Federal Reserve and your bank are still shut, most transactions will be processed the following business day. So while you can get your end of the transaction out of the way, the money may not go through at that moment.

If you urgently need to make a cash withdrawal or deposit, your bank’s ATMs should still be functional. Bank holidays mean you won’t be able to walk into a branch and speak with a teller. You could also visit another ATM, either within your bank’s network or out of network. Just be careful of ATM fees that can easily accumulate.

Why Are Some Holidays Bank Holidays?

United States banks usually stick with the federal holiday schedule as they depend on the United States Federal Reserve for major transactions. This includes wire transfers and Automated Clearing House (ACH) transactions. With the United States Federal Reserve closed on these holidays, banks can’t complete these types of transactions customers will need to make.

Why Do Banks Have Such Short Opening Hours?

When Are Banks Closed in 2022?

Almost half of the federal holidays don’t fall on the same date every year. For instance, banks close on the third Monday of every February for Presidents’ Day. In those cases, you’ll want to cross-check the exact dates yearly.

Other holidays such as Independence Day and Christmas Day will always fall on the same date yearly, so you can count on banks to be closed on these dates unless one falls on a weekend. Here is the schedule for 2022.

U.S. BANK HOLIDAYS IN 2022:

HolidayDate
New Year’s DayJanuary 1
Martin Luther King DayJanuary 17
Presidents’ DayFebruary 21
Memorial DayMay 30
JuneteenthJune 20
Independence DayJuly 4
Labor DaySeptember 5
Columbus DayOctober 10
Veterans DayNovember 11
ThanksgivingNovember 24
Christmas DayDecember 26
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