It’s simple to transfer money between your own accounts. But in certain situations, you might need to move money from one bank account to another. For example, let’s say you’re planning to buy a new car and using both of your savings accounts as funding sources. Or maybe you’ve just gotten a new job at another company, and they want you to set up direct deposit with them. In this case, transferring money from one bank account to another is necessary—but it can be confusing for some people who aren’t familiar with how the process works! Here’s what you need to know about how to transfer money between banks:
Transfer Money Between Your Accounts
The first way to transfer money between your accounts is by using the bank’s website or mobile app. This is a great way to do it because you can do it from anywhere, and there are no fees involved. You just need to know your account numbers, passwords and other details that you would normally provide when making any transaction on these platforms. According to the specialists at SoFi, “The only downside is that it can take some time for the money to show up in your account once transferred via this method.”
Wire transfer is a fast and secure way to send money. It’s ideal for sending funds internationally or domestically, paying bills and making purchases, or giving money to friends and family.
You initiate the transfer from your bank’s website or mobile app by entering information about the recipient’s account (such as their name, account number and routing number) along with an amount in dollars or pounds sterling. Your bank then sends this information over an encrypted link to other banks involved in processing the payment. Once this process is complete, funds are debited from your account and deposited into the recipient’s bank account(s).
The Automated Clearing House (ACH) is a secure way to transfer money between banks, and it can be used to pay bills, make bill payments, or pay credit card bills. ACH transfers are convenient because they are typically processed without human intervention, meaning you don’t have to wait for your payment to be processed.
The primary benefit of using ACH is that it’s a fast and reliable way to transfer funds without having cash in your account—which means that if you’re traveling abroad and need some cash but don’t have time or flexibility with your bank account balance, ACH is the perfect solution.
Pay by Check or Cashier’s Check
Paying by check is one of the safest ways to transfer money between banks, but it can be a bit more time-consuming than other methods.
You’ll first need to fill out a form and provide identification (your driver’s license), then mail the check or cashier’s check directly to your recipient’s bank. The recipient will then withdraw the funds at their bank of choice, which may take several days.
The downside? There are fees attached! You’ll need to pay an “exchange fee” in addition to any charges by your own financial institution and those charged by the recipient’s bank when they deposit your payment into their account—and these fees add up quickly!
Transferring money between banks is a simple process, but there are some precautions you should take. If you are planning to transfer money between your accounts, make sure that they are both at the same bank and have adequate funds available before initiating the transaction.