Key Takeaways
You can easily transfer money between bank accounts digitally — no need to visit a bank branch or ATM.
When choosing your transfer method, consider how much you’re sending, when you need it to clear and any fees you’ll incur.
Wire transfers tend to be the most expensive option, while P2P services like Zelle and Venmo are typically free.
Gone are the days when you had to leave the house to transfer money from one account to another. Thanks to the convenience of technology, you can do it from your computer or phone without ever visiting a bank branch or ATM.
But before you complete a transfer, there are some things you need to consider. Read on for everything you need to know about how to transfer money between banks.
How do you move money from one bank account to another?
To move money between bank accounts, you’ll need to enter information about the recipient’s account. For wire transfers, that can be details such as their physical address and phone number. For ACH transfers, you’ll need the account number and routing number. Newer methods of transferring money via person-to-person platforms such as Zelle or PayPal don’t require any specific banking details. You’ll just need to enter the recipient’s email address or phone number and the amount you want to send them.
What is a bank transfer?
A bank transfer leverages digital technology to move funds from one financial institution to another. So, rather than having to withdraw cash from one bank and deposit it at another, or write a physical check for the deposit, banks can quickly and securely transfer money digitally — whether you complete the transfer in-person or online.
For instance, if you receive direct deposits from your employer, you’re receiving a bank transfer from the company’s bank account to your account. The same is true when a friend pays you through Zelle or Venmo for ridesharing or a restaurant bill. Usually, transferring money online is safer and quicker than sending cash or writing a check. But while some bank transfers are instant, others can take a few business days to fully process.
How to transfer money from one bank to another
Most banks offer three ways to make a bank transfer. However, some banks have different offerings, so make sure you brush up on the types of transfers your bank allows. Here’s what most banks offer.
Wire transfers: Wire transfers are one of the oldest technological methods for moving money (as in old-school telegraph wires that were in use through the first half of the 1900s). These transfers are immediate, and are often used for larger sums of money — like covering closing costs on your home. But these transfers usually come at a cost — usually $25 to $35 per wire transfer (but costs may range from $0 to $50).
ACH/external transfers: Electronic transfers made by the Automated Clearing House network or ACH network are pretty common and quick — usually placed the same day. To complete an ACH transfer, you’ll need to include the account and routing numbers for the account receiving the funds. Different banks offer different timelines, so it’s important to ask for more information if you are in a crunch to move the cash quickly. There’s usually no fee to receive or send ACH transfers, but expedited transfers often come with a fee.
Person-to-person (P2P) apps: Zelle, PayPal, Cash App, Popmoney and Venmo are a few of the most recognized names in person-to-person payments. For these transfer services, you generally won’t need to know lengthy account numbers or routing numbers to send money to friends and family. Instead, you’ll just need the recipient’s email address or phone number they have on file with their bank or credit union. Some P2P apps also let you send money via username. You’ll link your bank account to transfer money, but you generally won’t need to log into your bank’s app to make the transfer. But some banks do offer P2P transfers, such as Zelle, and most of these wire services are free.
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What to know before transferring money between bank accounts
There are many ways to complete bank transfers, but before you move your money there are a few questions to ask yourself to make sure you’re choosing the right method.
How fast do you need the money to get there? Some bank transfer methods are instantaneous. For example, if you use a wire transfer or some P2P channels like Zelle, the money may be available in the account without any delay. ACH transfers, on the other hand, can take longer depending on when the payment is submitted and whether your bank offers same-day ACH services. Otherwise, you could wind up waiting for the transfer to process for two or more business days.
How much are you willing to pay in fees? Before sending or receiving a bank transfer, check to see if your bank will charge any fees for your preferred transfer method. Most banks charge hefty fees for sending wire transfers — an average of $26, according to Bankrate, CNET’s sister site. If you don’t want to spend any cash, you’re better off using a P2P option or an ACH transfer.
Are you transferring money abroad? If you need to transfer money to someone outside the US, your options will be limited. Zelle, Venmo and Popmoney do not allow you to access your account, or send or receive money while abroad. You’ll likely need to explore options for an international wire transfer, which tends to cost more money.
How much do you need to send? If you need to send a large amount of cash, carefully consider your options. For example, while Zelle is free and fast, banks and credit unions often limit how much you can send in each transaction to relatively small amounts as low as $300. Plus, it’s easy to mistakenly send money to the wrong person when using P2P apps. And once it’s sent, it’s hard to get your money back. Wire transfers tend to be the best route if you need to send a huge amount of money, despite the transfer fee.
Will you exceed the transfer limit often? Even though most banks no longer limit the number of bank transfers you can make in a month following the suspension of Regulation D, some do. However, some banks and credit unions charge an excessive transfer fee after you exceed six bank transfers in one statement cycle. So, if you’re frequently moving funds from a savings account to a checking account, you might want to switch to a bank account that doesn’t charge these fees, such as Ally.
The bottom line
Transferring money between bank accounts usually only takes a few minutes from an app, website or phone. But how long it takes the money to arrive can vary by service and bank. While some money transfer options are free, they could take longer. And others that are faster may come at a cost. Before initiating or completing a bank transfer, find out how much the transfer costs and how long it will take to determine the best route.
FAQs
It depends on how much money you need to send and how fast you need it to get there. If you’re transferring a smaller sum, payment apps like Zelle, PayPal and Venmo are free and fast. If you need to move a sizable chunk of cash, a wire transfer may be a better option.
Regulation D is part of a government framework that includes a range of laws about bank accounts. Part of this regulation used to limit the number of electronic transactions from a savings or money market account to no more than six per statement cycle. This limit was paused during the pandemic and officially suspended in October 2022. While that limit is no longer required, many banks still impose a fee for additional transactions. Keep this in mind if you’re transferring money from an online savings account to a checking account.
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