Source: Finance Derivative
Lyle Solomon
The days of returning money in cash to a friend or relative are long gone. Several easy solutions are available for moving those monies from one bank to another. In this post, we will discuss that and more.
How can you transfer money from one bank to another?
You may need to transfer money from one bank to another for various reasons. For instance, you may need to transfer money to the creditor for credit card debt settlement. Or you may need to transfer money to a friend urgently. But how can you do it and that too fast? Let’s find out.
Wire transfers
One of the fastest ways to send money electronically between two people is through a wire transfer, which can be done through a bank or a nonbank provider.
You’ll need the routing number, account number, recipient’s name, and maybe the recipient’s address for a domestic wire transfer. You can arrange a domestic wire transfer online or in person at a branch or office.
While speedy and possibly allowing you to send more money than other ways, wire transfers can also be pricey.
Remember that wire transfers cannot be sent on weekends or bank holidays and may have a weekday deadline set by your bank.
Internal Electronic Fund Transfers
It is easy to transfer money between accounts if you have more than one at the same bank, such as a checking account and a savings account. It’s called an “internal transfer” in this case. Look for methods to transfer money on your bank’s website or mobile app. You may typically set up a one-time or recurring transfer between related accounts, and most internal transfers settle instantly or within one business day.
External Electronic Funds Transfer
Let’s say your checking account is at one bank while your online savings account is at another. You can establish an “external transfer” by linking your savings and checking accounts. You usually need both your account number and the routing number of the external bank to transfer money to an external account. After they’ve been linked, you can transfer money between the accounts whenever you’d like.
Paper checks
Writing a check and depositing it at a bank branch, online, via a mobile app, or by mail is a conventional method for transferring money between banks. An official cashier’s check can be used to transfer money and is deposited similarly to a regular check.
Peer-to-Peer Transfers
Online P2P payment platforms like PayPal, Venmo, Zelle, Cash App, and others are available nowadays. These tools can be helpful if you need to send money to someone or your bank does not provide bank-to-bank transfers.
Your checking account and routing information must be used to link your bank account to the payment app or service to create the accounts. For instance, while using PayPal, the money you send is automatically taken out of your bank account.
Following that, PayPal transfers this cash to the recipient’s PayPal account. The recipient can then use PayPal to make purchases or send the funds to their bank account.
Email Money Transfer
Using an individual’s email address, money can be sent and received using this manner. The involved banks email the recipients to inform them of the transfer before using a secure fund transfer network to transmit the funds. One of the most popular systems for email money transfers is Venmo, which is utilized alongside Zelle, Apple Pay, and Google Pay.
Cash transfer
Even though most banking is now done digitally, a straightforward cash transfer is still a viable option. Even if it doesn’t always make sense to withdraw and deposit cash, such as when moving enormous sums of money, there are some situations where it might be a convenient and cost-effective option. Cash can also be viable if you need to move the funds immediately.
Your best option is to make a cash withdrawal in person at a branch of your local bank or credit union to avoid fees. You can be charged a transaction fee by your banks or the bank that operates the ATM if you use it.
Are there fees involved?
On average, wire transfer costs range from $25 to $30 for transfers to US bank accounts and $45 to $50 for transfers outside the country. Additionally, if you are receiving money, there may be fees. Some banks charge a fee for wired funds, while others don’t.
Generally speaking, online transfers are free. However, some banking institutions may charge fees.
What’s the fastest method of doing this?
There isn’t a single response to this query because it will vary according to your bank, the destination country, and the amount of money you want to send. The quickest choices are typically wire transfers or online applications. You can consider the following payment options:
Zell – You can access Zelle online or through a mobile app. You may quickly link to your bank account for quick transfers because it has partnerships with most US banks, including Bank of America, Chase, Citibank, and Wells Fargo.
PayPal – PayPal is also another well-liked choice. Although sending money from one PayPal account to another is almost immediate, sending money between banks may not be the fastest method.
Venmo – A peer-to-peer app that is partnered with PayPal and made to facilitate transfers is called Venmo. Users can be added as contacts so that you can quickly and effectively pay money to them.
Western Union – Western Union, is the most widely used choice when sending money online through wire transfers. The funds will be transferred immediately into the recipients’ bank accounts.
One of the apps mentioned above is your best option if you need to transmit money quickly. Check whether your bank already has an app for quick money transfers since many of these are associated with banks. Be careful to evaluate fees, especially if sending money to foreign bank accounts or utilizing several currencies. To keep your banking information secure, you should also be careful to create a strong password and PIN.
A bank-to-bank transfer can be your best option if you need to move money between two of your accounts. This digital transaction often functions as an ACH transaction.
Many banks enable free bank-to-bank transfers if you send money to another account you own. Just connect the two accounts, that’s all. Typically, you can do this via your bank’s online banking system. Some banks require you to phone or go to a branch, especially those with a small internet presence.
You’ll need the account numbers, routing numbers, and documentation proving your ownership of both accounts to link two accounts. After you establish the connection, sending money between the two banks will be simple.
What should you remember when transferring money from one bank to another?
There are a few things you must keep in mind when transferring money from one bank to another. Here are a few of them.
Consider speed: Determine how soon the funds must reach the other bank.
The time it takes for the money to flow can range from a few seconds to many days, depending on the type of bank transfer.
Check out the fees: A wire transfer may occasionally be a good option for quickly sending significant sums of money, although it won’t be free. Other techniques, like Zelle, can be quick and cost nothing.
Recheck the recipient’s bank account details: You’ll likely need, at the very least, the recipient’s name, cell phone number, and account number. On the other hand, Zelle merely requires the user’s phone number or email address.
Check out the savings withdrawal restrictions: A rule limiting the number of transactions and withdrawals from savings deposit accounts was removed by the Federal Reserve in April 2020.
The number of transactions in these accounts may be limited by your bank, even though this requirement is no longer necessary. Going above your bank’s withdrawal limitations may incur charges.
Conclusion
A quick and simple way to move money from one account to another is through an external transfer. It’s crucial to examine your options so that you are aware of their costs and the time to transfer money.
