Updated: July 17, 2024
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Transferring money between banks is a common consumer need. It’s often necessary when moving to a new area, seeking better rates or services or managing multiple accounts. Popular methods for transferring money include wire transfers, automated clearing house (ACH) transfers, peer-to-peer payment apps, personal checks and cashier’s checks.
Our tips outlined here will prepare you for the process and help ensure smooth and secure money transfers between banks.
Bank transfers are a secure method of moving money between accounts, which can be handy when changing banks or simply managing your budget.
Transfer speeds, transfer limits, transfer fees and the recipient’s information are some factors to consider before transferring money.
Mobile apps can simplify the process of transferring money between banks by using your smartphone.
A bank transfer is a method of moving money from one bank account to another. These transfers can be internal (within the same bank) or external (between different banks).
Bank transfers can be done electronically, such as through a wire transfer or ACH transfer, or using traditional methods like personal checks. There are many scenarios where a bank transfer might be necessary. For example, you might need to transfer money from your checking account to your savings account for budgeting purposes.
Or, if you’re paying rent or sending money to a friend, you might use a bank transfer to move the funds from your account to theirs. Understanding how bank transfers work can help you manage your finances more effectively and securely.
Yes, bank transfers can indeed be delayed. The processing time for a bank transfer can vary depending on the banks involved and the type of transfer. Transfers initiated on weekends or holidays won’t start processing until the next business day.
If you need to make a time-sensitive transfer, it’s best to plan ahead and account for potential delays.
Before initiating a bank transfer, consider the following to determine which method best suits your needs:
Transfer Speed
Some methods are faster than others. Wire transfers are often completed within the same day, while ACH transfers might take a few days.
Transfer Limit
Banks may impose limits on the amount you can transfer in a single transaction or within a certain period.
Transfer Fees
Be aware of any fees associated with the transfer method you choose. Wire transfers, for example, usually come with higher costs than ACH transfers.
Recipient’s Information
Make sure you have the correct details of the recipient’s bank account to avoid delays or errors.
There are several bank transfer methods, each with its own advantages and disadvantages. Understanding the different ways to transfer money between banks will give you some flexibility and help you save time.
Wire transfers are a reliable and fast method of transferring money between banks. They are ideal for large amounts and are fast and secure, but they can be costly.
You need the recipient’s bank account number and routing number to initiate a wire transfer. A routing number is a nine-digit code that identifies a specific financial institution and facilitates electronic transfers like direct deposits, bill payments and wire transfers.
Wire transfers are typically processed within the same day, and fees range from $15 to $50. Depending on the institution, wire transfers may not be processed on weekends or holidays or after certain cutoff times during the day.
ACH (automated clearing house) transfers are electronic fund transfers between banks within the ACH network. They are typically free and great for regular, smaller transactions, but they can take a few days to process.
You’ll need the recipient’s bank account and routing numbers to complete an ACH transfer.
P2P (peer-to-peer) payment apps like PayPal, Venmo and Cash App allow you to transfer money between banks using your smartphone.
These apps vary in fees, processing times and transaction limits. Some transfers may be instant, while others can take a few days.
Writing a personal check is a traditional way to transfer money between banks. You’ll need the recipient’s name and the amount to be transferred. Once deposited, checks can take several days to clear.
There are usually no fees for writing checks, but they may not be suitable for large amounts due to transfer limits.
Cashier’s checks and money orders are secure ways to transfer money. A bank issues a cashier’s check and guarantees the funds, while a money order is a prepaid paper document.
Both methods require the recipient’s name and the amount. They typically process faster than personal checks but may come with fees.
Most institutions offer several different methods to transfer funds, but you should be careful if you're handling a time-sensitive transaction. Your bank will be able to provide you with a cutoff time, after which certain transfer methods will carry over to the next day. If you’re transferring money between banks in different time zones, you may have to plan farther in advance than usual.
Decide whether to use a wire transfer, ACH transfer, P2P app, personal check or cashier’s check.
Collect the recipient’s bank account number, routing number and any other required information.
Use your bank’s platform to start the transfer process.
Double-check the information to ensure accuracy and prevent delays.
Complete the authorization process to finalize the transfer of funds.
When transferring money between banks, keep the following security measures in mind:
Bank fraud has grown in complexity with the use of online banking systems. Following these basic tips can help ensure smooth money transfer between banks and keep funds safe as they move:
If a bank transfer goes wrong, you can take the following steps:
Regulation D is a federal regulation that limits the number of certain types of withdrawals and transfers you can make from a savings account to six per month. This includes transfers made via online banking, phone or automatic transfers.
The purpose of Regulation D is to encourage savings and ensure banks have sufficient reserves. Exceeding this limit can result in fees or the reclassification of your savings account to a checking account. In April 2020, the Federal Reserve Board announced changes to Regulation D, removing the six-transaction limit. Although it’s no longer in effect, many banks still enforce the six-per-month rule.
Understanding the mechanics of money transfers can be helpful, especially if you need to send money frequently. We answer some common questions about transferring money between banks.
Most ACH transfers process in one to three business days. If initiated before the bank's cutoff time, wire transfers are often completed on the same business day. Personal checks and cashier’s checks may take several days to clear.
The amount of money you can transfer between banks can vary greatly depending on the bank and the type of transfer. Some banks allow transfers up to $10,000 monthly, and a few even as high as $25,000 monthly. However, other banks may have lower limits.
The best method to transfer money between banks depends on your specific needs, including the transfer speed, cost and recipient account information. The best options include wire transfers, mobile apps, email money transfers and writing a check.
You can transfer money internationally through wire transfers, and you’ll need to know the recipient’s name, address, bank SWIFT BIC and bank account number, along with the International Payments System routing code (IBAN) for certain countries.
There are multiple ways to transfer funds between accounts at different banks, including wire transfers, mobile apps, email money transfers and writing a check. Some third-party companies may offer more cost-effective and speedy options than banks.
About Alvin Yam, CFP
Alvin Yam is a certified financial planner (CFP) with over 15 years of experience working with individuals and corporations. Before founding Paraiba Wealth Management, he was a director at HSBC and a financial consultant at Charles Schwab. Yam is MoneyGeek's expert consultant on wealth management and personal banking.
Yam earned his bachelor's degree in political science from the University of California, San Diego, and his Master of Business Administration from Loyola Marymount University.
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