Where's my direct deposit?

posted October 7, 2016 in Blog

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 a holiday and the credit union is open, but your payroll deposit isn’t in your account like it should be.

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

The reason behind both of these situations is 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. 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.

Holidays the Federal Reserve is closed:

  • New Year’s Day - January 1
  • Inauguration Day - January 20 (only on presidential inauguration years)
  • MLK Day - Third Monday is January
  • President’s Day - Third Monday in February
  • Memorial Day - Last Monday in May
  • Independence Day - July 4
  • Labor Day - First Monday in September
  • Columbus Day - Second Monday in October
  • Veterans’ Day - November 11
  • Thanksgiving Day - 4th Monday in November
  • Christmas Day - December 25

When a federal holiday falls on a Saturday, it is usually observed on the preceding Friday. When the holiday falls on a Sunday, it is usually observed on the following Monday.

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 Greater Iowa, who decide when to directly deposit the funds into your chosen account. However, it is the company that is depositing the money into the account that actually controls when the money is available. 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. If there is a holiday coming up and it falls on a normal pay day for you, it’s best to ask your employer when the funds will be available.