You may occasionally need to move money across bank accounts. You might be paying a portion of your money toward your rent each month or you might want to transfer funds from an old account into a high-interest savings account.
You have a few options for moving the money, though. You might be able to do it without ever leaving the comfort of your home. Like most things in today’s world, digital possibilities are expanding. Here are a few methods for transferring money across bank accounts and which one is ideal for your circumstances.
Steps for Transferring Money between Banks
Since many digital choices are easily accessible for free, moving money between accounts at various banks is not difficult.
Online, you can transfer funds in a few simple steps from one bank to another:
- Visit your bank’s website or download the app to connect.
- To transfer to a different bank, select the transfer feature and click.
- For the account at the other bank, enter the routing and account numbers.
- Transfer the money.
The ownership of the other account may need to be verified by your bank. Depending on whether verification is required, the transfer could take up to two days.
When transferring money, be aware of any minimum balance requirements set by your bank because doing so could result in a fee.
The Zelle technology, made available by a number of American institutions, enables free and typically quick transfers of money across banks.
The recipient’s email address or mobile number are the only information you need to use Zelle. Your bank will determine the maximum amount you can send using Zelle, but the maximum amount you can receive is uncapped.
Different ways of transferring money from one bank to another
Transfers between Peers
You can send money to friends and family or pay small businesses straight from your bank account using peer-to-peer (P2P) payment apps like Venmo, PayPal, Cash App, and Zelle.
However, not every P2P program transfers money you receive to your bank account instantly. Although most P2P payment programs lack this setting, PayPal provides a tool that can automatically sweep money into your bank account every 24 hours. Check the small print before registering as different apps have varying costs, processing delays, and transaction restrictions.
You can send money swiftly and securely to other accounts through wire transfers, but you will typically pay a fee for this service. Because funds are typically made available in one business day or even a few hours, this kind of transfer is helpful if you need to send large amounts of money right away.
Banks have different wire transfer fees. Domestic wire transfers could cost up to $5, and international wire transfers could cost up to $25.
Electronic funds transfers within the company
Moving money between accounts at the same bank is typically simple if you have several accounts there, such as a checking account and a savings account. An “internal transfer” is what is meant here.
Look for alternatives to transfer money on the website or mobile app of your bank. Internal transfers often settle instantly or within one business day, and you may typically set up one-time or recurring transactions between associated accounts.
Transfers of Electronic Funds from the Outside
Imagine you have a checking account at one bank and online savings account at another. An “external transfer” can be set up by linking your savings and checking accounts.
In order to transfer money to an external account, you normally need both your account number and the routing number of the external bank. After linking the accounts, you can move funds between them whenever you choose.
Things to think about before sending money
When deciding how to give money to someone else:
- Consider speed: Determine how soon the funds must reach the other bank.
- Comparing prices: For sending significant sums of money fast, a wire transfer may occasionally be required, although it probably won’t be free. Other techniques, like Zelle, can be quick and cost nothing.
- Recognize the account details of the recipient: In certain ways, you’ll likely need at the very least the recipient’s name, routing number, and account number. On the other hand, Zelle merely requires the user’s phone number or email address.
You’re prepared to send money after determining the speed, cost, and sending alternatives.
Apps and other online payment tools
- One of the most well-known services is PayPal. Given its ubiquity and the likelihood that both senders and recipients have active PayPal accounts, it might be the simplest to utilize. If you fund the transfer from your bank account, there are no fees associated with sending money to friends and relatives. However, there can be charges for financing transfers made using a debit card, credit card, or PayPal credit. Businesses could also be required to pay PayPal in order to accept payments from clients.
- Through Zelle, Popmoney, or comparable providers, the majority of banks provide free or low-cost P2P transfers. Your checking account is frequently automatically charged for those services. While signed into your account, search for “personal payments” or a similar term.
- Popular app Venmo is a product that PayPal owns and is comparable to. Both transfers into and out of a Venmo account are free unless you use the “cash a check option” or a credit card (in which case there is a 3% fee).
- Similar to the aforementioned services, Google Pay allows you to attach it to (or use it to pay for) Google goods and services.
Money transfers between banks can be done in a variety of ways. Whether or whether you hold both accounts and where you send the money will determine which choice is best for you. You might want to link the accounts using internet banking if you need to transfer money to another account that you own.
You can transfer money frequently in this manner. Cash withdrawals and deposits may also be effective in certain situations. Just be mindful of ATM costs. Consider using a wire transfer if you are transferring money to someone else’s account. It will cost money, but it’s quick and functional everywhere.
Use an app like PayPal, Venmo, Zelle, or Popmoney if you frequently transmit small amounts to other individuals. Lastly, double-check the account to which you are sending funds. Verify and verify the account numbers. It could be challenging or even impossible to get your money back if you send it to the incorrect account.