How To Transfer Money From One Bank to Another
It’s possible to electronically move money from one bank to another using various tools. With online banking, money transfers between bank accounts have become incredibly easy. While there are several methods you can use, each has its pros and cons. Keep reading to find out how to transfer money from one bank to another.
What Are Bank-to-Bank Transfers?
Bank-to-bank transfers are a way to transfer funds from one account to another. When speaking of bank-to-bank transfers, most people mean transfers that use the automated clearing house network. The ACH network connects most major U.S. banks and credit unions and allows for the transfer of funds between accounts at different banks.
All you need to do is initiate the transfer at the sending bank and the receiving bank will receive the funds after two or three business days, depending on the bank’s policies.
You can use bank-to-bank transfers to transfer money between two accounts you own or to send money to another person’s account. Unfortunately, the ACH network only connects U.S. banks. To send money internationally you would need to make a wire transfer or use a third-party service.
How To Transfer Money From One Bank to Another: A Step-by-Step Guide
If you want to make a bank transfer, follow the steps below:
Log into your bank account: Start a bank transfer through the bank’s website or mobile app.
Select transfer funds: Choose the option to transfer money.
Enter the routing number and account number: These should be the bank routing and account numbers for the person receiving the money.
Confirm the transfer: Once the details are entered, you can confirm the transfer. From there your bank might require you to verify your identity as the account owner. This may be done through text verification or a phone call.
Wait 1-2 days: It often takes a day or two for the funds to move.
Ways To Transfer Money From One Bank to Another
ACH transfers aren’t the only way to transfer money from one bank to another. Here is a look at some of the most commonly used methods.
Internal Electronic Transfers
Internal electronic transfers are often the best option if you own both bank accounts. For many banks, transfers between connected accounts are free, but this is not the case for all banks. You need to confirm the policies with the banks involved. This method is incredibly hassle-free if both accounts are in your name.
If you need to transfer the funds to someone else, you might need to use a third-party payment provider, an ACH transfer or a wire transfer. Your bank can provide you with information regarding the best method.
Peer-to-Peer Transfers
Nowadays, there are several P2P payment tools available online, including PayPal, Venmo, Zelle and Cash App. If you need to send money to someone or your bank does not allow bank-to-bank transfers, these tools can come in handy.
You’ll need to link your bank account to the payment app or service using your checking account and routing numbers to set up the accounts. When using PayPal, for instance, the funds you send are automatically deducted from your bank account.
PayPal then sends this money to the recipient’s PayPal account. From there, the recipient can choose to spend the money via PayPal or transfer it to their bank account.
Wire Transfers
This is a relatively old method that predates apps and online banking tools. A wire transfer is a quick method that allows money to be moved without a physical exchange of cash. This is a safe method for both parties to transfer funds even though they may be in different geographical locations.
This transfer is usually between two banks or financial institutions. Rather than physically transferring the cash, the financial institutions involved share information about the recipient, the receiving bank account number and the amount to be transferred.
The sender is then required to pay for the transaction at their bank. The sender provides the recipient’s details, such as personal information, banking information and the reason for the transfer.
Writing Paper Checks
If technology is a little more trouble than it’s worth, you can choose to write a check. If you’ve got money somewhere in an old account, all you need to do is write a check and enter your name as the payee, then deposit the check into your new account.
Email Money Transfer
This method involves sending and receiving money using a person’s email address. The participating banks notify the individuals of the transfer via email and then the money is delivered through a secure fund transfer network. Venmo, Zelle, Apple Pay and Google Pay are some of the most commonly used services for email money transfers.
Things To Consider Before Transferring Funds
Before you transfer money to another account, make sure to double-check all payment information to ensure you are sending money to the right account.
For example, providing incorrect information for a wire transfer may keep the money from reaching the recipient. Inputting the wrong username, phone number or email in a peer-to-peer transfer app may send money to the wrong person. In some peer-to-peer apps, you may not be able to recover this money.
Make sure you know exactly who you are sending money to before you make a transfer. Many scammers take advantage of the non-refundable nature of wire transfers and payment apps. They may impersonate customer service representatives, government workers or family members to try to convince you to send them money.
Takeaways
Today, you can transfer money from one bank to another securely using various methods. Understanding the different methods can be helpful when it comes to choosing a convenient way to transfer money, depending on your needs. However, be sure to understand any fees or risks involved before initiating a transfer.
FAQ
Here are the answers to some of the most frequently asked questions about transferring money from one bank to another.
What is the easiest way to transfer money from one bank to another?
One of the easiest ways to transfer money from one bank to another is by using a peer-to-peer app such as PayPal, Venmo or Cash App.
How do I transfer money from my bank to another bank?
You can transfer money from your bank to another by using a wire transfer, writing a paper check or using a P2P app.
Is there a fee to transfer money from one bank to another?
Depending on the method, yes, there can be a fee to transfer money from one bank to another. Some peer-to-peer apps will charge a transaction fee and you can expect to pay up to $25 for an international wire transfer. Before sending your funds, make sure you read the fine print to understand the fees and process.
How much does it cost to transfer money from one bank to another?
The cost of transferring money from one bank to another varies based on the specific policies put in place by the banks involved. But in general, you can expect to pay between $0 and $50 to finalize a wire transfer.
Can you use Zelle to transfer money between banks?
Yes, you can use Zelle to send money between banks. If your bank and the recipient's bank use Zelle, then you can use it to begin a transfer.
Sarah Sharkey, Chris Ozarowski and Elizabeth Constantineau contributed to the reporting for this article.
This article originally appeared on GOBankingRates.com: How To Transfer Money From One Bank to Another
