A bank transfer is moving your money from one bank to another. You can do the same using a cheque or electronically. It can be done internally, meaning the transfer happens between accounts at one bank. Or externally, where the money is transferred between accounts at two unique banks.
Bank transfers give you freedom and you don’t have to withdraw cash to shift money. You can use a bank transfer to move a small or big sum of money to one’s account. There are many options to transfer money between bank accounts. You can either do it online, using an app or visit your nearest bank branch. The ideal method depends on when you need the money and why you’re sending it. Here you’ll learn about the different transfer methods and options to choose the best one.
Things to consider when transferring
There are a few points to consider when transferring money between banks.
- Timing: Some bank transfer methods are quicker than others which can be substantial for an instant transfer. You can also transfer money from a credit card to a bank account transfer for a quick transfer.
- Cost: Some bank transfer options cost no fee.
- Transfer limit: Depending on the transfer type, your bank will limit how much money you can send to another account in one transaction.
Methods to transfer money from one bank account to another
Internal Electronic Funds Transfer
When you have two accounts in one bank, like a savings and checking account, you can easily transfer money between them. It is an internal transfer and you can do the same using your bank’s website or app.
With this, you can send one or recurring transfers between two accounts. It usually takes one business day to transfer.
External Electronic Funds Transfer
Suppose you have a savings account in one bank and another savings/checking account in a different bank. You can link your savings and do an external money transfer. To proceed, you need the account number and other details of the bank to which you wish to transfer funds. Once both accounts connect, you can do the money transfer easily.
P2P payment apps such as PayPal, Venmo, Cash App, and more allow you to send money to anyone from your account. But, not all P2P helps transfer money to your bank account. For instance, PayPal has a feature to sweep cash into your bank account in 24 hours automatically. Different P2P transfers have other processing times, fees, and transaction restrictions.
Credit card Transfer
One of the benefits of credit cards is that it transfers money quickly. Doing a credit card transfer to a bank account helps you get the funds quickly. It is the easiest process and can be done immediately. To avail the benefit of instant fund transfer to your bank account, surely go for it. Apply for credit card with your preferred bank to enjoy the fund transfer benefits.
Wire transfers allow you to send money to external accounts safely and quickly in exchange for a fee. Such a transfer helps you in the case of sending cash instantly. As this method will reflect the funds in the account in just a few hours or one business day. However, the fees may differ depending on the bank.
Lastly, you can simply write a cheque in your name to transfer money from one bank to another.
How much time does a bank transfer take?
Internal transfers: They are usually instant if the accounts are connected.
External transfers: They may take up to two days
P2p Payment Apps: They are instant, but some apps may take longer to transfer money to your bank.
Wire transfers: You may receive domestic transfers on the same day, but international transfers may take time.
Things you need for a bank transfer
To make a full-fledged bank transfer, you will require the sender and receiver account details. In order for it to be easy, both accounts need to belong to the same person and to the same bank, or they must belong to different people and to different banks.
To send money between accounts at the same bank, mention the account and send the money. Sign in to your internet banking, pick your transfer option and choose your account.
To move money between accounts to another person, you should know the name, account details, and routing number. Ask for the person’s user name and email ID for mobile payments.
You should know the account and routing number to transfer funds from to your bank account.
Transferring money from one bank to another is simple. And before moving money, you should check how much time it will take and the processing fee. It will help you know the best options and the cost in total.