Save more, spend smarter, and make your money go further As a personal finance writer, I’m often answering questions from friends and family about basic financial principles. When someone is setting up a savings account for the first time, they’ll often ask, “How do I actually move the money from my checking to my savings?” Which is why I’ve created this guide on how to transfer money from one bank to another bank. It seems like such a simple concept, but transferring large amounts of money almost always involves jumping through some hoops. You can’t just call up your bank and ask them to move the funds, and actively withdrawing and then depositing the money is an unnecessary hassle. So what do you do? If you want to transfer money between bank accounts, whether they’re your own, or you’re sending money to someone else, here are the best ways to do so. Every major bank uses the Automated Clearing House (ACH) system to transfer money. When your employer sends your paycheck via direct deposit, they’re using the ACH. The ACH was created in the 1970s as a faster alternative to checks and a cheaper solution than wire transfers. It’s an electronic system that transfers money in large batches overnight. In addition to being faster than many other traditional transfer options, the ACH is often more secure than wire transfers and other types of electronic payment because it is backed by the self-regulating NACHA. How to Transfer Money from One Bank to AnotherTransferring money between different bank accounts is a common need for most people. I myself have three different banks I use for my personal and business needs, and I initiate transfers between them at least once a week. In other cases, I might be sending money to someone else, which also requires a bank to bank transfer.  Setting up external transfers can be confusing, so let’s use a hypothetical example to explain how it works using your online bank’s website. Bank A is the bank you’re transferring money out of, and Bank B is where you want to send those funds. Below, you’ll find six steps on how to transfer money from bank to bank: 1. Go to your bank’s website to link accounts.Log in to Bank A and click on the “Transfer Funds” section, then “External Transfers” or “External Accounts,” and finally, “Add an external account.” 2. Proof of account ownership.To add an external account, you have to verify your Bank B account with Bank A. Bank A will need proof that you are the owner of the account at Bank B. 3. Provide the necessary information.Bank A will ask for the account and routing number for Bank B (I’ll show you exactly how to find your account or routing number later in this post), and whether it’s a checking or savings account. 4. Very the account.Bank A will then ask you to verify your account with Bank B in one of two ways:
5. Verify the deposits.Log into Bank A and go to the “External Accounts” section. There should be a part that says, “Verify Your Deposits,” where you will enter the amounts that were transferred to Bank B. This process usually takes at least 1-2 business days. 6. Start transferring money from one bank to another.You are now able to transfer money from Bank A to Bank B with no problems. You can set up recurring or one-time transfers, depending on your needs. Typically, transferring money between two accounts is free, but sometimes there’s a limit on how much you can transfer at one time. This depends on your bank’s policies. For instance, when comparing credit unions vs. banks, credit unions usually have lower fees. When transferring money in and out of your accounts, keep in mind that there are usually savings and checking account minimums you must maintain to avoid additional fees or account closures. What Info Do You Need to Transfer Money?When it comes to trying to figure out how to transfer money from one bank to another, it can be confusing to set up if you don’t know what you need. In order to transfer money between banks, you’ll need the following information:
How Do You Find the Routing and Account Number?There are several ways to find the routing and account number for a particular bank account:
Alternatives to Bank TransfersIf you want to send money from your bank account to someone else’s, you’ll typically have to find an alternative to bank to bank transfers. That’s because you need to be the account holder at both banks in order to send or receive money. Here are some other popular bank transfer solutions: AppsFortunately, doing so has become easier than ever with plenty of apps and sites offering transfer services. Whether you’re splitting the dinner bill, paying your portion of the hotel reservation for an upcoming bachelorette party, or getting some last-minute rent money from Mom and Dad—you’ll be thankful you know about these easy options when you need to quickly transfer money between banks. Once your bank account is linked in the app, you can quickly type in a dollar amount, select the recipient, and hit send—they’ll get the funds nearly instantly.
Not only are they usually more convenient when you need to do a bank to bank transfer with someone who uses a different one than you, but they often allow the recipient to get the money the same day—usually for a small fee, of course. Additionally, you can also keep a balance in these apps, which can act as a short-term savings account. For instance, if you have someone transferring you rent money, it’s easier not to accidentally spend it if it’s not sitting in your bank account. If you choose to do this, just make sure you’re not using this balance to make payments to others, or you might find yourself stressed when the 1st of the month rolls around. Writing a CheckWhile it might seem outdated, writing a check is a feasible alternative to transfer funds to another one of your accounts or to someone else. If you don’t have a checkbook, many banks may provide a few checks per year, free of charge, or for a small fee. So, how do you transfer money using a check? It’s easy:
Wire TransfersAnother option when you need to transfer money between banks quickly is a wire transfer, which allows you to send money electronically. Wire transfers are a feasible alternative if you need to figure out how to transfer money without going through your bank since there are nonbank providers such as Western Union. Wire transfers are a popular solution for sending money abroad or making fast transfers. For a wire transfer, you’ll typically need:
*Note: Dates and amounts may vary depending on your bank and type of transfer. Policies may change. Which Transfer Method Should You Use?There are several factors to consider when trying to decide how to transfer money between banks, including:
Key Takeaways for How to Transfer Money from One Bank to Another
Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Debt Free After Three. This article has been updated since it was originally published on Oct 1, 2013.Save more, spend smarter, and make your money go further Zina Kumok is a freelance writer specializing in personal finance. A former reporter, she has covered murder trials, the Final Four and everything in between. She has been featured in Lifehacker, DailyWorth and Time. Read about how she paid off $28,000 worth of student loans in three years at Conscious Coins. More from Zina Kumok Visit the website of Zina Kumok. Browse Related ArticlesBank Accounts: When More is MoreHow to Wire MoneyHow Do Banks Make Money?Financial Tools: Stash Your Cash At the Right PlacesBanking Tips for 20-SomethingsFinancial Planning: The Three Banking Regulations / Law…Everything You Need To Know About Cashier’s Check…Chapter 04: Checking vs. Savings AccountPersonal Finance Interview with Cap of StopBuyingCrap.c…How Many Bank Accounts Should I & Can I Have? |
How to transfer your money from one bank to another
Related Posts
Copyright © 2024 chuyencu Inc.
