The Basic Definition
In the United States, a business day is any day that is not a Saturday, Sunday, or federal holiday. For most banking, payment processing, and legal deadline purposes, business days are Monday through Friday, excluding the 11 federal holidays recognized by the US government.
This is not a universal definition — some industries and contracts define business days differently — but for banking and federal purposes, this is the standard.
Weekdays vs. Weekends
Monday through Friday are considered weekdays. Saturday and Sunday are not business days, even if your bank branch is open or you can access your account online. The Federal Reserve does not settle payments on weekends, and ACH processing does not occur.
If a deadline falls on a Saturday or Sunday, it typically moves to the following Monday — though this depends on the specific contract, regulation, or institution involved.
| Day | Business Day? | Payments Process? |
|---|---|---|
| Monday | Yes | Yes |
| Tuesday | Yes | Yes |
| Wednesday | Yes | Yes |
| Thursday | Yes | Yes |
| Friday | Yes | Yes (subject to cutoff) |
| Saturday | No | No (Fed closed) |
| Sunday | No | No (Fed closed) |
Federal Holidays
The US government recognizes 11 federal holidays each year. On these days, the Federal Reserve is closed and ACH settlements do not occur. Federal holidays are not business days even if they fall on a weekday.
For the full list of holidays and how observed dates work, see Federal Holidays and Business Days.
Observed Holidays
When a federal holiday falls on a Saturday, it is typically observed on the preceding Friday. When it falls on a Sunday, it is observed on the following Monday. The observed date — not the calendar date — is the non-business day.
If July 4 (Independence Day) falls on a Saturday, the observed holiday is Friday, July 3. That Friday is not a business day for banking purposes, even though it is a weekday. Payments scheduled for Friday, July 3 are delayed to Monday, July 6.
Why Business Days Matter
Business days determine when:
- ACH payments settle — the Federal Reserve processes ACH transactions only on business days
- Wire transfers execute — Fedwire operates on business days only
- Checks clear — business days count toward check hold periods
- Legal deadlines expire — many contracts and regulations count in business days, not calendar days
- Payroll deposits arrive — direct deposit timing depends on business day processing
If you submit a payment or make a deposit on a non-business day, it is generally treated as if it was submitted on the next business day.
Business Days vs. Banking Days
These terms are often used interchangeably, but there is a technical distinction. A banking day is a day on which a bank is open for substantially all of its banking activities. A business day is broader — it refers to any non-weekend, non-holiday weekday regardless of whether a specific bank is open.
In practice, most US banks follow the Federal Reserve schedule, so the two terms usually mean the same thing. But a bank could theoretically be open on a federal holiday and still not be a "banking day" for ACH settlement purposes.