You’ll need to transfer money to a family member, colleague, friend, or someone else from time to time. While there are several ways to send money, there isn’t a one-size-fits-all option, and each method has its pros. So here are four ways to transfer money from one bank account to another.
Nowadays, transferring money between accounts at different banks is pretty straightforward due to online banking.
If you’re unsure about how to transfer money from one bank to another, follow these steps:
- Log into your bank’s app or website on a private network
- Select the send or transfer money option and click on transfer to another bank
- Enter the recipient’s account information. You’ll need the recipient’s name, routing number, and account number for most banks.
- Complete the transfer
Your bank may require you to confirm that you’re the account owner to authorize the transfer. If this is the case, the transfer may take at least 48 hours. Some banks may also charge fees, so you may want to clarify whether there are any fees before making the transfer.
Tip: A routing number – also known as a routing transit number (RTN) or American Bankers Association (ABA) routing number is a nine-digit code that identifies your bank branch and location. Together with your account number, it enables financial institutions to prove you’re the legitimate owner of the bank account.
Recipients can find the routing number and account number by logging into their online bank accounts. However, if the recipient can’t find these numbers, ask them to contact their bank for assistance.
The experts at SoFi recommend using wire transfers to send large amounts of money. They can allow you to send more money than other methods, and transfers usually take less than a day.
However, they can be pretty expensive, so you may want to inquire about the charges before transferring funds. In addition, while they’re fast, wire transfers can’t be done over weekends or on bank holidays.
Third-party services are another great way to quickly send money to family and friends, often at no cost. Some third-party services you may want to consider include:
- Western Union
Remember that third-party services will charge you an exchange rate if you transfer money abroad. Often, third-party services charge hefty exchange fees, so you may want to confirm the exchange rate before completing international money transfers.
If the recipient can’t receive money electronically, consider writing a check. Writing a check and depositing it into the recipient’s account, handing it over, or sending it via mail, can be cheaper than other money transfer methods – particularly if you have a free checking account.
However, while personal checks are an excellent way to send money to recipients who can’t receive money electronically, sending checks to recipients overseas can present several obstacles. For example, some banks may take a significantly long time to clear foreign checks, while others may not even accept foreign checks. So, if you’re sending money overseas, ascertain whether the recipient’s bank accepts foreign checks and ask how long they take to clear.
Ultimately, there isn’t a money transfer method suitable for all circumstances. Therefore, before transferring money, weigh the pros and cons of each method to determine the suitable method for your needs.