How to Transfer Money Between Banks

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.

Key Takeaways

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Bank transfers are a secure method of moving money between accounts, which can be handy when changing banks or simply managing your budget.

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Transfer speeds, transfer limits, transfer fees and the recipient’s information are some factors to consider before transferring money.

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Mobile apps can simplify the process of transferring money between banks by using your smartphone.

What Is a Bank Transfer?

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.

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CAN BANK TRANSFERS BE DELAYED?

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.

Considerations Before Transferring Money

Before initiating a bank transfer, consider the following to determine which method best suits your needs:

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    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.

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    Transfer Limit

    Banks may impose limits on the amount you can transfer in a single transaction or within a certain period.

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    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.

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    Recipient’s Information

    Make sure you have the correct details of the recipient’s bank account to avoid delays or errors.

5 Ways to Transfer Money Between Banks

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

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 Transfers

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 Payment Apps

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.

Personal Checks

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

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.

How to Transfer Money Between Banks

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.

1
Choose the Transfer Method

Decide whether to use a wire transfer, ACH transfer, P2P app, personal check or cashier’s check.

2
Gather the Necessary Details

Collect the recipient’s bank account number, routing number and any other required information.

3
Initiate the Transfer via the Bank’s App, Website or Branch

Use your bank’s platform to start the transfer process.

4
Confirm the Transfer Details

Double-check the information to ensure accuracy and prevent delays.

5
Authorize and Submit the Transfer

Complete the authorization process to finalize the transfer of funds.

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WHAT SECURITY MEASURES SHOULD YOU TAKE WHEN TRANSFERRING MONEY?

When transferring money between banks, keep the following security measures in mind:

  1. Try to use secure, encrypted internet connections and avoid public Wi-Fi when conducting financial transactions.
  2. Always double-check the recipient’s bank account and routing numbers to prevent errors.
  3. Set up transaction alerts to be notified of any unexpected activity.
  4. Enable two-factor authentication (2FA) for an additional layer of security.
  5. Keep an eye on your accounts for any unauthorized transactions.

Tips for Smooth Money Transfers Between Banks

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:

  • Use a Reputable Bank or Transfer Service: Choose reliable institutions to minimize the risk of issues.
  • Double-Check Information: Verify all details before submitting the transfer to avoid errors.
  • Use Your Bank’s Official App: Ensure security by using official banking apps or websites.
  • Be Mindful of Transfer Limits: Know the fund limits to avoid delays or additional fees.
  • Plan Ahead for Large Transfers: Allow extra time for larger amounts, which may require additional verification.
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WHAT SHOULD YOU DO IF A BANK TRANSFER GOES WRONG?

If a bank transfer goes wrong, you can take the following steps:

  1. Contact your bank as soon as you notice the issue. Provide all relevant details about the transaction.
  2. Keep a record of all communications and any documentation related to the transfer.
  3. Follow up with your bank to ensure the issue is being fixed. If necessary, escalate the matter to higher authorities within the bank.
  4. If your bank does not satisfactorily resolve the issue, you may need to file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a U.S. government agency that ensures banks, lenders and other financial companies treat consumers fairly.

Regulation D and Transferring Money From a Savings Account

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.

FAQ About Transferring Money Between Banks

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.

How long does it take to transfer money between banks?
How much money can you transfer between banks?
What is the best way to transfer money between banks?
Can you transfer money internationally between different banks?
What are the alternative ways to transfer money between banks?
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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

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