Banking

How To Transfer Money From One Bank To Another

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 8 minute read

How To Transfer Money From One Bank To Another? It doesn’t have to be difficult to move money across banks. However, if you don’t grasp the procedure, it might be a bit of a challenge. Bank transfers are widespread since they allow you to shift money around according to your requirements for both businesses and people. As long as you’re dealing with a reputable bank, you’ll likely be able to transfer money in a matter of minutes.

Throughout this post, we’ll walk you through the process of transferring money from one bank to another. This will acquaint you with the procedure so that you are ready to make a bank transfer whenever the occasion demands it.

How do banks transfer money?

In banking parlance, an “internal transfer” is when you move money between your own bank accounts. An external transfer is a term used to describe a transfer of funds from one bank to another.

Electronic funds transfers (EFTs) are the most common method of sending money from one bank to another. There are several forms of electronic payments that fall under the EFT umbrella, including wire transfers and automated clearing house (ACH) payments. When compared to other payment options like writing a check, electronic funds transfers (EFTs) are more secure and less costly.

An ACH payment is a common and well-known EFT payment method. Direct deposit and online bill payment are both examples of using the ACH payment network. A money transfer from your bank account to the bank account of the firm to which you are making the payment occurs when you pay an online bill like your utilities or mortgage. A direct deposit is a transfer of funds from your company’s bank account to your own.

As more people use online and mobile banking to meet their financial requirements, bank-to-bank electronic transfers are becoming increasingly common. In 2019, the ACH network handled more than 24 billion payments totaling more than $55 trillion, according to the Federal Reserve Bank of Atlanta.

How can I transfer money from one bank to another?

Bank wire transfers are frequently quick and painless. Because the ACH network is used by all of the country’s main financial institutions, it doesn’t matter which ones are engaged.
To learn how to move money from one bank to another, follow these simple steps:

  1. To access your online account, access the online banking system of your financial institution. The account from which you wish to make the transfer should be located at this institution. Log in to your account and look for the section where you may request a money transfer. The “Transfer money” button is commonly referred to as such.
  2. Set up a link between the two accounts you have. You must link your two bank accounts in order to transfer money between them. For this, you’ll need to input your second account’s details. If you see a button labeled “Add an account” or “External accounts”, click on it.
  3. Make a note of your login information. Your second bank account details should now appear on a screen for your review. You’ll need your second account’s routing number and account number. Your second account’s routing and account number can be found at the bottom of a paper check, on a bank statement, or on an online platform linked to that account. Fill out the form and submit it after you have these numbers.
  4. Investigate the deposited trial samples. Be prepared for a series of minor trial deposits from your bank before you begin making transfers on your own. Performing a small transfer first ensures that everything is operating properly between the two accounts. It is common for bank transfers to take a few business days to complete a trial deposit.
  5. Bank transfers can be started. You can begin moving money between your two linked accounts as soon as the trial deposits have gone through successfully. Before making any money transfers, make sure to find out if your banking institutions charge a fee for sending or receiving money. Typically, when you request a transfer, you’ll be asked for the transfer amount and the transfer date.

To make a money transfer, you’ll need a few things on hand.

You’ll need a few pieces of information before you may transfer money from one bank to another. As long as you have access to your bank account information in one way or another, you should be able to find the information you need. In most cases, you can access the information you need by entering into your bank’s online platform or by glancing at the physical check or bank statement.

If you want to move money between banks electronically, you’ll need the following information:

  • The name of the bank may or may not appear when you enter the right routing number for the second bank account, depending on the application. For example, a bank statement or a paper check will normally include the bank’s name and location. As far as the account name goes, it’s fully up to you. To assist you remember which account it is, put in something clearly recognizable, such as the name of the bank and the sort of account it is. “Chase checking”, for example, might be effective.
  • Account Type. Check to see if your checking or savings account is connected before you begin the process of setting up your new account. As a general rule, you’ll be asked what the objective of your new account will be when linking it, and you should identify whether it’s for personal or professional usage.
  • A nine-digit routing number is assigned by every financial institution that deals with money transfers to identify the location where your bank account was initially created. Don’t assume that the routing numbers for national banks are the same regardless of where you live. Check your online account, a bank statement, or a paper check for your routing number.
  • It’s similar to a routing number, except that an account number is specific to a particular account with a bank. Even if you have two accounts with the same bank, each one will have a unique account number. However, their routing numbers are very certainly identical. Your account number may be found in the same places as your routing number: in your online account, on a bank statement, or on a paper check.

Alternative ways to transfer money

Making a transfer from one bank to another Transferring money from one bank to another is not limited to utilizing your bank’s web portal or mobile app, although it is the most convenient and usually free option. If the accounts you’re moving between aren’t both your own, alternative approaches can be beneficial. Friends and family members often need money sent, and this is often the case. Other options for transferring money between banks include:

PayPal

In the beginning, PayPal was one of the first money transfer systems to gain worldwide acclaim. Anyone having a PayPal account or those who wish to send or receive money amongst them can do so for nothing more than sign up for a free account with PayPal.

To send money to another person, you’ll need to link a credit card, debit card, or bank account. If you receive money, you can have it in your linked bank account within one to three working days for free. If you like, you can pay 1% of the transfer amount (up to $10) for an immediate transfer to your bank account.

Zelle, Venmo, and Cash App

You may use Zelle, Venmo, and Cash App on any compatible iOS or Android device to transfer money. Due to their accessibility from any mobile device, these applications offer a convenient method to manage your finances on the move. It only takes a few minutes to make a payment using your phone whether you’re sharing a restaurant bill, paying rent, or sending someone a cash present.

There are three free applications that you can download and use, but you’ll need to link a bank account or credit card to each of them. Despite the fact that Zelle doesn’t charge any transaction fees, your banking institution may, so verify with your bank before using the service.

To send money using Venmo, you’ll need a bank account or credit card that’s already linked to the service. A one percent fee is charged for immediate transactions. Standard transfers from your Venmo balance to your bank account are free. If you’re using a debit card, a bank account, or your Venmo balance, sending money is free. If you pay with a credit card, you’ll be charged 3%.

Use your debit card information to link a bank account with the Cash App. Using a Cash App is as simple as connecting your credit card and sending money to a friend or family member. If you’re using a personal account, Cash App does not impose fees for sending, receiving, or cashing out your balance.

Google Pay, Apple Pay, and Samsung Pay

Google Pay, Apple Pay, and Samsung Pay are all mobile payment services that may be used on a variety of devices, including smartphones and smartwatches. They’re called “mobile wallets” because they save your credit or debit card information on a compatible smartphone and may be used virtually anywhere that accepts the mobile wallet.

It is no longer necessary for you to carry a wallet full of different credit and debit cards whether you shop online or in person. All three services, Google Pay, Apple Pay, and Samsung Pay, are free to use, but you must first link a credit or debit card to your account before you can begin using the service. Linked bank accounts or debit cards can be used to transfer and receive money using these services as well.

Writing a check

You can always use a paper check to move money between your own bank accounts or to another person’s account if you have an eligible checking account and know how to write a check. Although it’s a little archaic, this strategy is still effective.

When you open an account with a bank, you may get a few free checks, but if you need more, you’ll have to pay for them. Paper checks aren’t always available with all online banks, so check with them first. You or the recipient of the check may need to go to a bank to deposit the check if you bank with a company that offers mobile check deposits by phone.

Wire transfers

Wire transfers are a sort of electronic funds transfer (EFT), but they vary from ACH transactions in a few crucial ways. A wire transfer can arrive at its destination the same day you send it, which is far faster than an ACH transfer. Before the money is accessible in the recipient’s account, it might take several business days for an ACH transfer to be processed.

Wire transfer fees are common since they speed up the time it takes for your money to be available. It’s important to examine the wire transfer costs before making a wire transfer, as the rates might vary greatly between financial institutions.

When sending wire transfers, you’ll need to include the bank’s routing number and the account number of the receiver. An international wire transfer may necessitate the provision of additional information.

Bottom line

When it comes to personal money, bank transfers aren’t, particularly hard, but they might be a little perplexing when you’re just starting. If you’re in a hurry and need some fast tips on how to move money between banks, keep this article handy. You may also use the following guide to assist you to transfer money between banks:

  1. Find the money transfer section of your online account.
  2. By validating your second bank’s name, routing number, and account number, you may link your two bank accounts.
  3. The automated movement of trial deposits between your accounts can be started by you.
  4. Use your linked accounts to transfer money to and from your bank accounts.
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