How to transfer money from one bank to another
Quick insights
- Methods to move money between financial institutions may include wire transfers, external bank transfers or peer-to-peer apps.
- External transfers typically take a few business days, while wire transfers may arrive more quickly.
- You may need the recipient's routing and account numbers to complete a funds transfer.
Many people use more than one bank to manage their money, perhaps keeping a checking account at one institution and a savings account at another. Whether you're shifting funds between your own accounts or sending money to a friend who banks elsewhere, you might wonder how to transfer money from one bank account to another efficiently. In this guide, we'll explore how to navigate these transfers and find a method that fits your timeline and financial needs.
How funds transfers work
A funds transfer refers to moving money electronically from one financial account to another. You might use this process to send money to a friend, pay a business or shift money between your own checking account and savings account.
Instead of withdrawing cash or writing a paper check, you may initiate a transfer through your bank's website or a bank transfer application on your phone.
Using external bank transfers
An external bank transfer, also known as an ACH transfer, may allow you to move money between two different financial institutions. This method may be a fit for non-urgent payments or regular deposits into a savings account.
To set this up, you typically need the recipient's bank routing number and account number. These transfers often have no fee, but they might take one to three business days to process.
Sending a wire transfer
If you're sending a large amount of money, such as for a down payment on a new home, you might consider a wire transfer. A wire transfer may be an electronic payment that moves funds directly between banks, often arriving promptly.
Because of their speed, banks may charge a fee for this service, and the exact amount may vary depending on the institution. You'll likely need the recipient's full name, address, routing number and account number to complete the process.
Exploring peer-to-peer payment apps
Peer-to-peer (P2P) payment apps may offer a helpful way to send money for everyday expenses. Many banks include these services directly in their mobile apps, and you might even link these services to a digital wallet for added convenience.
With some apps, you might only need the recipient's email address or U.S. mobile phone number to send money. These transfers often arrive quickly and typically don't carry a fee, making them a streamlined option for splitting a dinner bill or paying a roommate for rent.
Steps to initiate a transfer
The exact process may vary depending on your financial institution, but you might follow a few general steps to send your money.
- Signing in to your account: You may start by logging into your bank's website or opening your mobile app.
- Navigating to the transfer section: Look for a menu option labeled "pay and transfer" or something similar.
- Entering the recipient's details: You might need to input their routing and account numbers, or their contact information if you're using a P2P service.
- Confirming the amount: Double-check the transfer amount and the recipient's information before submitting, as some transfers cannot be reversed.
The bottom line
Moving your money from one bank to another doesn't have to be a complex process. Whether you choose an external transfer, a wire transfer or a P2P app, exploring your options might help you find a method that fits your timeline. Reviewing the potential fees and processing times might help you make an informed decision for your financial needs.
