Here’s How to Transfer Money From One Bank to Another
Moving money within accounts at one fiscal mental hospital is easy enough. You can visit your bank in person, give them a call or use your bank ’ mho web site or app to move funds from one score to another .
But what if you have accounts at separate banks, fintechs or credit rating unions ? What if you have retirement accounts to fund ? What if you need to send money to person else, whether at the same bank or a different initiation ?
Transferring money from one bank to another can be a short more complicate, but the thoroughly news is, you have options. One is likely to make sense for your situation.
This article breaks down how to transfer money from one bank to another into two categories : transferring your money into one of your own bank accounts and transferring your money to person else .
How to Transfer Money Between Your Own Bank Accounts
many people have separate bank accounts for diverse purposes. For case, entrepreneurs keep their personal finances separate from their business finances and might have incentives to keep the accounts with different banks and citation unions .
early understanding savers may bank online for their savings because they want a higher APY but have a check account with a local savings bank for still of access. Investors can well rack up assorted accounts for savings, checking, money market, stocks and IRAs .
Whatever your reason for managing classify accounts with separate banks, you have a few methods for money transfers between those accounts .
Setting Up Automated Clearing House (ACH) Transfers
The safest, most authentic, and frankincense most common shape of bank-to-bank transfers is through ACH transfers. ACH was established in the 1970s as a cheaper, more effective alternate to paper checks and wire transfers .
Since then, most employers have adopted ACH transfers as their payment mechanism ; more than 93 % of Americans now receive their paycheck via aim deposit .
ACH and electronic funds transfer ( EFT ) are often used interchangeably. however, ACH is a type of EFT. EFT is a broader term that includes early transfer methods, like digital payments and wire transfers .
To complete a bank-to-bank transplant using ACH, you ’ ll first need to link your two accounts via your on-line bank platform. For the sake of case, let ’ s identify your two fiscal institutions Penny Credit Union and Hoarder Bank .
For this example, we ’ ll assume you want to transfer $ 5,000 from your Penny Credit Union checking account to your Hoarder Bank savings score :
Step 1: Find the Correct Transfer Page
Log in to your Penny Credit Union online banking account or mobile app. Find the “ Transfer Funds ” action using the web site ’ sulfur or app ’ south menu. then locate the option for external transfers and select an option along the lines of “ Link an external account. ”
Step 2: Provide Proof That You Are the Account Owner
Provide Penny Credit Union with the score number and routing phone number for your Hoarder Bank score when prompted. To determine your report and routing numbers, you can reference a check. The nine-digit count in the penetrate left is your bank ’ mho routing number, and the total immediately to the mighty is your account number .
Where are the explanation and routing numbers on a assay ? We show you how to find them and tell you what they are used for .
Step 3: Verify the Account
Penny Credit Union will then ask to verify the external explanation, typically by using a third-party course of study to log in to your other history on your behalf or by making minor deposits and withdrawals .
The first option requires that you provide Penny Credit Union with your username and password for Hoarder Bank. This can get messy if you have two-factor authentication turned on for the Hoarder Bank account. The profit of this option is that it ’ s immediate, but the drawback is that you ’ re providing personal information to another institution .
The irregular option may take longer, but it ’ s besides more likely to be secure. In this scenario, Penny Credit Union will make multiple deposits into your Hoarder Bank account, typically amounting to less than $ 1. Don ’ thymine get besides excited ; the credit union will immediately withdraw that money, and then you have to report the deposit amounts to confirm the account is yours. This can take multiple clientele days .
Step 4: Move the Money
once you have linked your Penny Credit Union and Hoarder Bank accounts, you can transfer the $ 5,000 from one to the early. You will besides be set up for all future bank-to-bank transfers .
At most banks, you can typically entirely retire funds from a savings account six times in a calendar month before being rejected or incurring fees .
ACH transfers are the easiest, safest, and often most commodious way to transfer funds from one bank account to another, but there are early, less elegant methods .
Writing Yourself a Check
You can besides transfer money from one bank report to another by merely writing yourself a check mark. For example, if you want to transfer $ 100 from the Penny Credit Union checking explanation in the previous model to your Hoarder Bank savings account, grab your credit union checkbook and fill out a check for $ 100, addressed to yourself. then heading to Hoarder Bank to deposit it ( or use your smartphone app to complete a mobile deposit ) .
write something like “ Bank-to-bank transfer to Hoarder savings ” on the memo line to jog your memory about that detail check when balancing your checkbook .
not indisputable how to write a match ? Check out our childlike check-writing how-to for bit-by-bit guidance .
Withdrawing and Depositing Cash
Don ’ thymine have a checkbook ? No problem. If you don ’ t mind driving to your bank ( or at least a nearby ATM ), you can withdraw the amount of money you ’ d like to transfer from one history, then plainly drive to the second institution ( or an ATM ) and deposit the funds .
Avoid paying ATM fees by using an in-network ATM .
Transferring Money to Someone Else’s Account
deoxyadenosine monophosphate much as we ’ d like to hoard all our pennies ( and dollars and flush Ben Franklins ) to ourselves, sometimes we need to send money to person else ’ s bank account. There are a few common ways to do bank transfers with another recipient .
Using a Wire Transfer
You can conduct a wire transfer at a savings bank or with an external supplier, like Western Union. Wire transfers tend to be faster than ACH deposits ( domestic can be same-day and external is typically nightlong to a few days ) and are much the prefer method acting when making a depressed payment and/or paying close costs for a house when a lender is involved .
however, wire transfers are dearly-won ( for the payer and the payee ) compared to alternatives. here are the medial costs for sending money via electrify transfers :
- Domestic incoming: $15
- Domestic outgoing: $25
- International incoming: $15
- International outgoing: $49
To send money via a wire transfer, you must know the recipient role ’ sulfur identify, the recipient ’ second account and routing numbers, your own account and routing numbers ( if not going through your own bank ) and the recipient role ’ second contact information ( name, cover and telephone act should suffice ). You will typically besides need to provide a photograph ID .
theoretically, you could besides use a electrify remove to send money from one of your own accounts to another, but as this is dearly-won, this should be your death haunt .
Writing a Check or Paying Cash
If the recipient role can meet with you in person or wait until you can mail a check — and then doesn ’ triiodothyronine take care depositing the funds themselves — you can besides transfer money to them by writing a bridle or withdrawing the funds from your explanation ( at the savings bank or an ATM ) and paying in cash .
Don ’ triiodothyronine pay in cash if you need an electronic record of the requital ; save cash for transfers with family and friends, like giving your college student gas money or paying your neighbor for shoveling your driveway .
Money Transfer Apps
Money transfer apps are growing in popularity, so much so that Venmo has its own social media feed that lets you see what your friends are paying each other for. ampere long as you and your pay recipient both have the same app, transferring funds is no problem ( and instant ). common apps include PayPal, Venmo, Cash App, Zelle, Apple Pay, Google Pay and Chase QuickPay .
To use the app, you have to link it to your savings bank account, which requires a lot of the like work as linking your depository financial institution accounts for ACH transfers does .
As an case, here are the steps you need to take to link your bank report to PayPal :
- Log in to PayPal on a computer or via your smartphone app.
- Click “Wallet.”
- Click “Link a bank.”
- Search for your bank.
- Use Yodlee to confirm your bank account by providing your username and password (immediate) or link your bank manually by providing the checking and routing number (one to three business days).
If you go the manual route, PayPal will make two minor deposits into your score and then immediately withdraw them. You will then need to report the lodge amounts to confirm that the request account is yours. You may want to consider this option for security reasons .
You can besides link a wag rather of a bank, which will allow you to start making transactions faster, but using a calling card alternatively of a bank costs money. This is true of most payment apps.
Pros and Cons of Different Transfer Methods
indeed what ’ s the best room to transfer money from one bank to another ? It depends on the urgency with which you need to transfer it, how much you need to transfer and how much you ’ re bequeath to spend for add efficiency and/or security. here are some of the benefits and drawbacks of each .
About ACH Transfers
- No cost
- Typically no (or high) limit on amount to be transferred
- Safe and reliable
- Typically takes between two and three business days
About Wire Transfers
- Fast (can be same-day)
- Relatively secure
- High fees for payer and payee
- Varying limits on amount to be transferred
About Money Transfer Apps
- Fast transfer
- Easy, mobile-based process
- Takes longer to fund account from app
- Can carry fees
- Limits on transfer amounts
- No cost if you already have checks.
- No guarantee of immediate deposit by recipient
- Can require mail or physical meet-up
- Risk of being lost
About Withdrawals and Deposits
- No cost (assuming no ATM fees)
- Less paper trail
- Greater risk of loss or theft
- Requires physical exchange
What You’ll Need When Transferring Funds
Whenever you ’ re transferring funds via ACH or wire transfer, you ’ ll need to know :
- The name of the bank to which you are transferring funds.
- The recipient’s full name (either your name if transferring to your own account or the other person’s full name if moving money to someone else).
- The account type to which you are transferring (checking or savings).
- The routing number, which is a bank’s nine-digit code that uniquely identifies it as a financial institution that is either federally or state chartered and carries an account with the Federal Reserve.
- The account number, which is unique to you or the recipient.
- The recipient’s personal information, including phone number and address.
When transferring via app, you can typically search for the recipient ’ sulfur username or treat. If you are expecting person to send you money via a payment app and you have a common name ( cough cough Tim Moore ), ensure that you either create a alone username or confirm with the person sending you money that they have the right field drilling combination of first identify + last appoint + numeral .
When writing a arrest, you only need to know the recipient ’ sulfur name or party to which they would like the crack made out. If mailing the check, you will obviously need to find the recipient ’ s address .
Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012.
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