The analysis of the time-dependent and two-dimensional fluid flow and heat transfer around a single row of tubes in a channel is performed numerically. Due to its fundamental significance and practical importance, aerodynamic and heat transfer characteristics of tube bundle have been paid great attention by many researchers. In the present study, the immersed boundary method is applied by using a Cartesian grid system. Numerical solution for the governing equations of mass, momentum and energy conservation is obtained with the finite volume method. To validate the numerical approach with the immersed boundary method, the results have been compared with published data. The generation and evolution of vortical structures, wake interactions and their effects on the drag, lift and heat transfer are analyzed at different Reynolds numbers. The effect of hydraulic boundary layer development on the fluid flow and heat transfer is also investigated.