Direct Deposit – Why It Never Comes on the Weekends or Holidays

Have you ever wondered why in this day and age where everything is done electronically, you never receive your pay on the weekend, even if it is a direct deposit? Or it’s the middle of the week, you know that your local financial institution is open because you just called them to check your balance but your Social Security deposit isn’t in your account like it should be. When you asked your credit union, or bank, they just told you that it’s because it’s Columbus Day. You probably don’t care what day it is, you just want your money! Are we speaking to your soul?

So… Why don’t I get my direct deposit over the weekends or on holidays?

Well, the reason behind both of these situations (and many more similar to these) are that most electronic transactions such as direct deposits go through the Federal Reserve Bank. The Federal Reserve is only open Monday through Friday. If the Federal Reserve is closed, then nothing is able to be processed. The Federal Reserve is also closed for 10 holidays throughout the calendar year (see chart). For those times when the Federal Reserve is closed on a normal business day, it is up to the company depositing money (or withdrawing) as to whether the transaction is done a business day before the normal date or the next business day after the said holiday.

Federal Reserve Bank Holidays Effect Direct Deposit

Who has the final say as to when I will receive my direct deposit?

There are a lot of people who think that it is the financial institutions, like LRRCU, who decides when to directly deposit the funds into your chosen account. I have to admit that I was one of them until I started to work for a credit union.

It was somewhat of a surprise to find out that it was the company that was depositing the money into the account that actually controlled when the money went into it. If they say “Don’t put it in until Friday” then that financial institution won’t receive the funds to put into your account until Friday. So next time you get frustrated because the money isn’t in your account on Saturday or on a national holiday, like President’s Day, it’s not your financial institution’s fault.

Like to discuss this further? Contact me by calling our Main Office at 717-295-6685 and asking for Amy.

Amy Dura
Amy Dura

Amy is the EFT Manager at Lancaster Red Rose Credit Union. She has been with LRRCU for nearly 10 years. When not at work, Amy spends all of her free time with her energetic son & husband.