– How To Transfer Money from One Bank to Another –
Transferring Money from One Bank To Another is really not as difficult as assumed by many. Having access to online banking has made transferring money between bank accounts easier than it ever has been. However, this article guides us through the several ways that we can transfer money from one bank to another.
Banks are catching up with online technology and creating more ways to connect to your cash. Between websites and mobile apps, you have more access to your finances than ever.
You can even easily transfer money to a bank account from the comfort of your own home.
How Banks Do Transfer Money
Every major bank uses the Automated Clearing House (ACH) system to transfer money. When your employer sends your paycheck via direct deposit, they’re using the ACH.
The ACH was created in the 1970s as a faster alternative to checks and a cheaper solution than wire transfers. It’s an electronic system that transfers money in large batches overnight.
In addition to being faster than many other traditional transfer options, the ACH is often more secure than wire transfers and other types of electronic payment because it is backed by the self-regulating NACHA.
Details You Will Need When Transferring Money
In order to transfer money between banks, you’ll need the following information:
Bank Name: You need to know the name of the bank where the receiving account is held at. This should be fairly simple to deduce, especially if you’re transferring to another one of your accounts. You might also need the address of the bank (the location where the account was created).
Savings/Checking Account: You need to identify whether each account is a savings or checking account. Again this should be simple if they are both your own accounts. If you’re transferring money to someone else, you’ll need to find out from them before you can make a bank transfer.
Personal/Business Account: You’ll also need to know whether the receiving account is a business or a personal account. This is important because different guidelines and fees may apply for transfers to and from business accounts.
Routing Number: What is a routing number? A routing number is a nine-digit number that is associated with your bank. This number is important in ensuring that your money ends up in the right account at the right bank. One bank can have several routing numbers, so it’s important to always double check that you’re using the right one.
Account Number: Another important number you need when setting up a bank-to-bank transfer is an account number. Account numbers are eight to 12-digit numbers that are associated with your unique account. So, even if both your savings and checking accounts were at the same bank, they would have their own unique account numbers.
Methods of Transferring Money from One Bank to Another
Transfer money with a wire transfer
People often use a wire transfer, which is quick and electronic, to transfer large sums of money. Wire transfers can be sent to both domestic and international bank accounts.
Domestic wire transfers (meaning those to bank accounts in the U.S.) can be processed immediately or can take anywhere from one to two business days to show up in the recipient’s bank account.
The timeline will depend on when you initiate the transfer, as many banks have cutoff times that determine whether the money will be sent out the same day or the next day.
The downside of a wire transfer is that it can be costly to send and receive one. Fees can range from $10-$65, with international transfers being the most expensive.
If you want to initiate a domestic wire transfer, you may need to know:
- The routing number of the bank you’re sending the money to
- The name, address, and phone number of the bank that will be receiving the funds
- The bank account number of the recipient of the money
- The name and address of the recipient of the funds
If you are sending an international wire transfer, you’ll also need:
- The recipient bank’s SWIFT code (a designation that identifies members of a global network of financial institutions), if applicable
- The International Bank Account Number (IBAN)
Checks are one of the oldest and easiest ways to transfer money, and all you’ll need is the recipient’s name and the amount. Most checks can be deposited at any bank in the country, regardless of which institution the sender banks with.
In most cases, there are no fees for sending or receiving a check, although you’ll have to purchase checks if you don’t already have them. Checks can be deposited in person, at an ATM, by mail, and even with some mobile banking apps.
The funds won’t be taken from the sender’s account until the check is deposited, so it’s important to ensure there’s enough money in your account to avoid bounced checks or overdraft fees.
Mobile Banking App
Depending on which institution you bank with, you may be able to make domestic transfers through your mobile banking app. In most cases, you’ll open the app, log on to your account and select the “transfers” option.
From there, you’ll select the type of transfer you’d like to use and enter all necessary information.
Once your bank account is linked in the app, you can quickly type in a dollar amount, select the recipient, and hit send—they’ll get the funds nearly instantly.
You can send money to someone else’s PayPal account for free through the “send to family and friends” option. PayPal is a fast method, so as soon as you send the money, it will appear in the other person’s PayPal account. From there, they can transfer it to their own bank account.
Chase QuickPay lets you send money from your Chase bank account to someone else, who doesn’t have to be a Chase customer. If you have a Chase QuickPay account, you can also send an invoice and request that someone else sends you money.
Venmo allows you to make money transfers instantly from your bank account, debit or credit card, or your running Venmo balance, eliminating the need to pull out cash to pay friends back and vice versa.
Another popular feature is the social feed, which allows you to see what your friends are up to.
Another popular peer-to-peer payment app is Cash App, which lets you send money to another user’s bank account or debit card. Users can also set up direct deposit, so that any funds they receive automatically go into their bank account.
If you don’t like the social feed of Venmo, which shows who you’re sending money to, and for what, you’ll like that Cash App is a more private way to send your money.
Apple Pay/Google Pay
Depending on your preference for Apple or Google, you can use these payment apps to make bank to bank transfers, online payments, and more.
Apple Pay is connected to your Apple Wallet and makes it simple to send money back and forth, which you can easily do while texting by just hitting the Apple Pay button under the text field or clicking the Google Pay button.
Avoiding Issues with Bank Transfers
- Double-check the details. Check every figure, even if your bank preloads them. It can be difficult to get your money back if you send it to the wrong account (more on this below).
- Get the person on the end of the line to repeat figures and names to you. If you’re doing a transfer through your telephone banking service, ask the person taking your call to repeat every number and letter to you.
- Beware of going overdrawn. Unless you’ve specified future payment date, the money will leave your account straight away, so make sure you have enough available to avoid expensive fees.
There are multiple ways to transfer money from one bank to another. The best option for you will depend on where you send the money, and whether or not you own both accounts.
If you need to move money to another account that you own, you may want to link the accounts through online banking. This way you can regularly transfer money. Withdrawing and depositing cash may also work in some circumstances.
Frequently Asked Questions
1. How long do transfers take?
Transfer times vary depending on the service, destination, currency, funding method and many other factors. For example, TransferWise money transfers are instant if you pay with a debit or credit card, but can take up to three days if you fund the transaction through a bank transfer.
2. Can I set up a recurring transfer?
Sometimes. Some services will allow you to set up recurring transfers, whereas others will require you to make a new transaction each time you want to send money.
3. Can I transfer money between my own accounts as well as to accounts with other banks?
Yes. You can use the “payments and transfers” feature of your online banking account to transfer funds between your checking and savings accounts or pay off your credit card, among other options.
4. Can I use the “transfer money” feature to pay off my credit card?
Yes. You can use this feature to transfer money from a checking or savings account to pay off your credit card.
5. Is there a maximum limit on the amount I can transfer?
Yes. However, limits vary depending on which service you use.
We hope this article has been helpful for you. Please share it with anyone who you think will appreciate the information!