If you’re following the news and hear “government shutdown,” it’s natural to wonder what happens to your everyday banking. Do branches close? Do ATMs still work? Will your direct deposit arrive?
The short answer: banks stay open. Commercial banks and credit unions are private institutions and don’t rely on annual federal budget appropriations to operate, so branch hours, ATMs, online banking, debit and credit card transactions, and bill pay continue as normal—exactly what the FDIC’s shutdown note and the NCUA’s member update explain.
You might also worry about your money’s safety during a shutdown. Deposit insurance remains in force. FDIC coverage for banks and NCUA coverage for credit unions are funded by industry assessments—not by the annual federal budget—so insured deposits stay protected the same as any other time, as both the FDIC and NCUA emphasize.
Paychecks and benefits generally continue, too. If you’re receiving direct deposit from an employer or from programs like Social Security, those payments typically keep flowing; the Social Security Administration’s shutdown FAQ explicitly says benefits continue on their normal schedule.
Where people notice the biggest impact is on services that depend on specific federal verifications or programs. For example, some mortgage steps that require IRS income transcripts (Form 4506-C/4506-T) or Social Security number verifications can slow down, and Fannie Mae’s lender letter spells out temporary underwriting flexibilities and alternatives that lenders can use to keep loans moving.
Everyday tasks like withdrawing cash, depositing checks, transferring money, and using your debit card should remain business as usual. Mobile deposit and ATM networks stay online, and banks continue to provide phone and chat support (though hold times can vary when lots of customers call at once, which the FDIC update notes while reaffirming normal operations).
Are banks open?
Yes. Banks and credit unions keep normal hours, and digital banking continues—per the FDIC and NCUA.
Is my money still insured?
Yes. FDIC/NCUA insurance remains unchanged during a shutdown, as both agencies state in their public updates linked above.
Do direct deposits and benefits arrive?
Generally yes. Payroll and Social Security typically post as scheduled, which the SSA confirms.
What banking services could be delayed?
- Items that need federal verifications (IRS/SSA)—see Fannie Mae’s lender guidance for common workarounds.
- Some FHA/VA processes may be slower depending on agency contingency plans (lenders often follow investor guidance like the Fannie Mae letter).
What should I do if I’m closing on a loan?
Talk to your lender early about alternatives to IRS transcripts and build in extra time for processing. Ask how they’re handling any SSA verifications or government-related steps; lenders typically follow the temporary flexibilities outlined in Fannie Mae’s guidance.
Will my credit cards, debit card, Zelle, ACH, and wires still work?
Yes. Card networks and payment rails continue to operate, and banks remain open and transacting during a shutdown as the FDIC reiterates. Standard cutoff times still apply unless your bank tells you otherwise.
Can I open a new account or apply for a loan?
Usually yes. Branches and online applications stay available. If your loan requires tax transcripts or certain verifications, expect potential delays and ask your lender whether they’re using the temporary options described in Fannie Mae’s lender letter.
What if I use a credit union?
You’re covered the same way. Credit unions remain open and members’ deposits are insured by the NCUA; see the agency’s statement, “NCUA to Remain Open… Members’ Shares Insured”.
Do federal benefit payments ever pause?
Not due to a shutdown. The SSA explains that Social Security and SSI payments continue on their normal schedule, though customer-service response times at some agencies may be slower.
Summary
A U.S. government shutdown does not close banks or turn off your ability to access money. Day-to-day banking continues. The main impacts show up around loans and services that rely on federal agencies, which can introduce delays. If you’re in a time-sensitive transaction, check with your bank or lender for the best path forward and consult the FDIC update, the SSA FAQ, the Fannie Mae guidance, and the NCUA notice if you need specifics.
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