Has this ever happened to you?
You wake up excited to place a trade, deposit a big check, or withdraw money from your account only to learn that the U.S. financial markets or your bank are closed for a holiday.
Or you’re waiting anxiously for payday to come only to find out it’s not happening until a day later because of a holiday.
Whomp-whomp.
Know the difference between bank holidays and market holidays and when they occur so that you don’t get caught off guard like that again.
So, what’s the difference between the two and do they always coincide?
First, let’s define market holidays and bank holidays:
Market Holiday: A non-weekend day on which the U.S. financial markets are closed. This includes the stock market and bond markets, typically. If you want to buy or sell an investment such as a stock, ETF, mutual fund or bond, it’s important to know when the trading days are closed.
Bank Holiday: A non-weekend day which most commercial banks and savings institutions are closed to the public. While all Federal Banks and branches are closed, it is important to know that not every bank observes the holidays below; so, be sure to check your bank’s holiday schedule.
Market holidays do not always coincide with bank holidays, even if the schedules may appear identical at first glance.
So, grab your 2020 calendar and make note of the market and bank holidays for the New Year:
2020 Market Holidays
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New Year’s Day – January 1, 2020
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Martin Luther King, Jr. Day – January 20, 2020
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Washington’s Birthday – February 17, 2020
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Good Friday – April 10, 2020
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Memorial Day – May 25, 2020
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Independence Day – July 3, 2020
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Labor Day – September 7, 2020
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Thanksgiving Day – November 26, 2020
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Christmas Day – December 25, 2019
2020 Bank Holidays
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New Year’s Day – January 1, 2020
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Martin Luther King, Jr. Day – January 20, 2020
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Washington’s Birthday – February 17, 2020
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Memorial Day – May 25, 2020
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Independence Day – July 4, 2020 (falls on a Saturday, not observed)
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Labor Day – September 7, 2020
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Columbus Day – October 12, 2020
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Veterans Day – November 11, 2020
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Thanksgiving Day – November 26, 2020
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Christmas Day – December 25, 2020
THE BOTTOM LINE:
When we invest our money in the markets or deposit it into a bank account for safekeeping, we’d like to think that we have full control over that money at all times. But market and bank holidays, along with regularly scheduled business hours, may prove that otherwise.
The key is to be informed and prepared, so you’ll never feel like you’re limited in accessing your money.
