Would you like to transfer money from one bank to another? There are many factors that you should consider. You will realize that most people normally do this due to one reason or another. From paying monthly rent to paying for your wedding abroad, there are many reasons that might make you transfer money from your bank account to another account.
Regardless of the reason of moving money from one account to another, there are many ways of moving these funds. Sometimes, you might not necessarily have to move from the comfort of your home. This article will outline the various ways you can move money from one account to another and also other considerations you should make.
Simple Ways To Transfer Money From One Bank Account To Another
The following are some of the practical ways you can move your money from one bank account to another. They include:
Although a lot of banking nowadays is done digitally, you can still transfer money from one account to another in cash. Here, you can be sure that you will transfer not only small amounts of money but also large sums of money. In fact, cash is always a good option if you want to move the money as soon as possible.
If you want to avoid high charges, you should consider withdrawing the money in person. This is because using the ATM can be a bit expensive when it comes to transaction fees. Besides, these ATMs usually have a daily withdrawal limit for different customers out there. Sometimes, you might be limited to only withdraw $600 or less.
Besides cash, you can transfer money from one account to another through checks. Checks have actually been there for ages. Most people have made payments using checks in the recent past. If you want to transfer money using this method, you just need to write a check and then deposit it at the other bank.
The good news is that checks usually work whether you are depositing money into an account you own, or you just want to send money to someone else. However, if you choose to use this method, you have to be patient as it might take a few days for a successful money transfer.
3. Bank-to-bank transfer money
Sometimes, you might wish to transfer money between two banks accounts that are in your possession. Here, you should consider using the bank-to-bank transfer method. You will note that this is a digital payment that actually works as an ACH payment.
If by any chance you have used direct deposit in the past or paid your credit card bill online, chances are that you used ACH. To put it into perspective, ACH means automatic clearing house payment.
Fortunately, most banks normally allow you to make bank-to-bank transfers. All you need to do is to link the two accounts you own. You can readily do this through the bank’s online banking platform. However, those banks that have a big online presence will require you to visit or call a branch.
When linking the two accounts, you will need to have the bank account numbers, their router numbers and proof that you are actually the owner of these two accounts. The moment you create the link, you can then send money between these two bank accounts. As far as processing payments is concerned, it will only take a few days when you choose to use this method to transfer your money.
4. Wire transfers
Are you looking for a quick way to transfer money to someone’s account? Wire transfer is one of the best options that you should consider. Depending on the day you send the money, funds will arrive at the other bank within the same day or one business day. Here, you need to have the bank account number, routing number for the bank and the bank where you want to send money.
In fact, wire transfer has proved to be very effective when one wants to send money internationally. If you want to transfer money internationally using this method, you need the information mentioned above as well as a SWIFT Code. Also, you need to have a national ID or IBAN number of the bank receiving the money. When using this method to transfer funds from one bank account to another, you might be charged a certain fee. However, the fee ranges from $10 to $40.
Currently, there are many apps that can help you transfer money from one bank account to another. All this has been brought about by the proliferation of modern-tech devices. You might have heard about P2P payment services. These are some of the apps that have become very popular as far as sending small amounts of money is concerned.
The good news is that you will be able to send money quite fast. PayPal and Venmo are other popular services that can have made money transfer seamless. These services have their respective apps that allow you to send and receive money from one bank account to another.
If your bank offers one of the services mentioned above, you might not have to create an account. This is because it already included there. However, you still need to create an account and then link it to the bank account. On the other hand, the recipient will need to have an account too.
In some instance, you can even send payments by linking a credit card. This method is very convenient only that it comes with a certain fee.
Information That You Need To Transfer Money From One Bank Account To Another
When transferring money from one bank account to another, there is some information that you must have. This includes:
- The bank name : One of the critical details you need to have at the fingertips is the name of the bank you are transferring the money to recipient. Also, you need to have its address and so on.
- Is the account a Checking or savings account : Besides the name of the bank, you need to know if the account is a saving or a checking account.
- Business or personal account : Nowadays, you can either open a business account or a personal account. You need to know if the account is personal or business before sending money to a particular account.
- Routing number : You will note that every bank normally has a 9-digit routing assigned to tithe purpose of this number is to ensure that your money ends up in the correct account and at the correct bank. It is important to note that some banks normally have more than one routing number. Therefore, you should always ensure that you are using the right one.
- The account number : You cannot any money transfer if you do not have the account number of the receipt. Therefore, you should know this number and ensure that it is the correct one. These numbers usually range anywhere from 8 to 12 digits. Also, these digits are associated with unique accounts.
Steps You Should Follow To Transfer Money From One Bank To Another
If you want to transfer funds from one bank account to another, here are the steps that you should follow:
1. Set up a relationship between the two accounts
Before you start anything, you should set up a relationship between the two accounts you have at different banks. These are; the one sending the money and the one that will receive it.
2. Link the paired accounts
Once you have established the relationship between these two accounts, the next step is to link them. Here, you should log in to the first bank’s website and then choose the option for making transfers.
You will come across a choice for internal transfer and external option. Since the former is meant for internal transfers, you should consider the external option since you are moving funds to a different bank.
3. Provide external account information
One of the vital information you should provide as far as the external account is concerned is the routing number and the personal account number. You should ensure that these are the correct details so that you do not make any mistake.
4. Confirm the new account
Once you have entered the required information, you should verify that you have access to the external bank’s account. The first bank will actually need you to make this verification. In this case, you might be asked to enter your username and password. The first bank has to verify these details.
Besides this, the first bank can choose to make a small deposit and then ask you to confirm the amount deposited. If you are right, you can then go to the next step.
5. Set up bank money transfer
Once you have verified all the details, time is ripe for you to set up transfers from the sending bank’s site. Here, you will choose the sending and receiving accounts and then enter the amount you wish to transfer. After that, enter the date when you make the transaction. Once this is done, you will see the date the funds will be available in the receiving account.
Also, you will have an opportunity to choose if you want to make a one-time transaction or rather a recurring one. Once you choose the option you please, you can then select the option to submit them.
Find The Routing And Account Number
Fortunately, there are many ways to find the routing and account number for a particular account. They include:
- Online : Once you log in to our bank online, you can readily find both the routing and account number in the account details section. You might need to enter a pin or password to access this information within the app.
- On a check : On your check, the routing and account numbers will be located at the bottom of the check. At the bottom left corner, you will see the routing number followed by the account number and finally the check number.
What Is The Easiest And Safest Way To Transfer Money From One Bank To Another?
When it comes to making money transfers, the safest and easiest method of money transfer might not be the same thing. The reason why you are sending money can be a deciding factor when choosing the transfer method you choose.
For instance, if you are sending money to pay for a transaction, you can use ACH transfer. However, if you are making large transactions, you might need to consider certified check or a wire transfer.
In fact, when making international money transfers, you should consider using the wire transfer option. When making money transfers using this method, you should be careful with the details you include when sending money as it cannot be transferred.
How Long Does It Take To Transfer Money From One Bank To Another?
The period it will take to transfer money from one bank to another will differ depending on the method of money transfer chosen. For instance, ACH transfers are known to take about 1 to 2 days for domestic transfers. Here, funds will be available the next day if you are within the US.
On the other hand, transfers done through payment services might be instant. However, if you need to transfer the funds to a bank account, you might need to be patient as this might take about 2 days for the transfer process can be complete.
When it comes to domestic wire transfers, the transfers might be completed within the same day or even less than one hour. Finally, international wire transfers might take a couple of days. Sometime, they might pass through international clearing houses before the process is complete.
Are Bank Money Transfer is Safe?
Most people usually ask of bank transfers are safer or not. Well, it is important to note that each type of money transfer has its own risk. Besides convenience, you should be keen to check how the transaction is handled and who else might have access to the funds in the account.
It is important to note that hackers usually take advantage of online payment services. If you misplace your device, a hacker can actually access funds in your account if you have installed a money transfer app such as PayPal or Venmo. Therefore, you have to be careful if you have these apps on your device. Ideally, the device should have a strong password that will not be easy to guess.
Finally, the more parties are involved in a particular transaction, the higher the risk. Therefore, if you have fewer entities, you will be safe from fraudulent transactions that might make you lose your money in the long run.
Transfer money from one bank account to another should no longer be a bother to you. You should consider following the ideas mentioned above, and you will be good to go. However, you should be careful so that you do not lose your hard-earned money. More importantly, consider cheaper yet convenient ways of money transfer. By doing this, you will not only enjoy more convenience but also save more money. Consider these ideas today, and you will not regret it.