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 been made incredibly easy. While there are several methods you can use, each has its pros and cons. Keep reading to find out how you can transfer money between accounts efficiently.
This is the best option if you own both bank accounts. All you need to do is initiate the transfer in the sending bank and the receiving bank will receive the funds after two or three business days, depending on the bank’s policies. This will highly depend on the banks you’re using and whether you are transferring money to a local or international bank account.
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 a third-party payment provider or a wire transfer. Your bank can provide you with information regarding the best method.
Nowadays, we have several P2P payment tools available online, including PayPal, Venmo, Zelle, Cash App and more. 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.
This is a relatively old method that predates apps and online banking tools. Wire transfer is a quick method that allows money to be moved without needing to exchange 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.
Today, you can send 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 involved before initiating a 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.
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- Better Money Habits - Bank of America. "4 Ways to Send Money Online to Friends and Family."
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- Better Money Habits - Bank of America. "How Do Bank Deposits Work? When Are Funds Available?"
- Forbes. 2020. "Funds Availability And Your Bank Account: What You Need To Know."