Is Saturday A Business Day (Overview: All You Need To Know)

Is Saturday a business day?

What days of the week are business days?

What are the important elements that you must know!

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Is Saturday considered a business day

A business day is typically a day other than Saturday, Sunday or a legal holiday.

In most countries around the world, Saturday is not a day where official business is conducted.

This disqualifies Saturday as a business day.

Typically, in most countries, official business days start from Monday through Friday except for weekends and legal holidays.

Official business operations normally start on Mondays at 9:00 a.m. and end on Fridays at 5:00 p.m.

The reason why Saturday is not considered a business day is due to the influence of the banking sector on the economy.

For instance, in the United States, the Federal Reserve is closed on Saturday.

For this reason, the banks are unable to perform any transaction or operations with the Federal Reserve. 

This impacts the bank’s ability to perform transactions throughout its entire system.

Considering the banks cannot perform their highest level transactions with the Federal Reserve on Saturdays, we consider that day to be a non-business day.

Is Saturday a business day for banks

Let’s discuss the banking business days.

Is Saturday considered a business day for banks?

What is the difference between a business day vs banking day?

In short, for most banks, Saturdays are not considered a business day.

In the United States, for instance, the banks are unable to perform important transactions with the Federal Reserve as they are closed on Saturday.

Although the banks may have branches open and serve clients on Saturdays, a Saturday is not a true “business” day as major business operations and transactions cannot be conducted.

Many banks conduct business on Saturdays but are unable to process transactions such as clear check deposits or perform financial operations until the following Monday.

For that reason, a Saturday is not a business day for banks.

Are weekends business days

We’ve talked about Saturdays not being a business day, but what about weekends?

Do weekends count as business days?

The same points that we’ve presented for Saturdays apply for weekends in general.

The concept of “business day” is closely linked to the banking sector.

On weekends, since banks are unable to process any transaction with the Federal Reserve, they are unable to process transactions for their clients either.

When banks can’t operate, then businesses can’t operate (said loosely).

As such, although banks and businesses do operate on weekends and are open for business, it does not make the weekend an official business day.

Business day vs working day 

What is the difference between a business day and a working day?

A business day is a day where businesses, banks, governments and all major institutions are open for business.

On a business day, all major economic activities in a country or an economy are conducted.

A working day, on the other hand, is a day where work is done.

However, a working day does not necessarily mean that the day the work is done is a business day.

A Saturday can be a working day but it may not be considered as an official business day.

Individuals working on legal holidays are going through a potentially normal workday but the day is not a business day.

In a nutshell, a business day is necessarily a working day but a working day is not necessarily a business day.

Examples

Federal Reserve

To illustrate the point that Saturdays are not business days, it’s interesting to see what The Federal Reserve Board has published on its website as examples of how transactions are processed.

The examples provide an illustration of the fund availability rule for depositing and withdrawals by checks.

Citizens Bank

Here is Citizens’ position on their Saturday operations:

New Balance 

Here is New Balance’s position on what is considered a business day:

Takeaways 

Does Saturday count as a business day?

Are Saturdays business days?

Let’s look at a summary of our findings.

Is Saturday a business day:

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