On any given day, you may need to send money to a loved one or transfer money to a newly opened bank account. Or you may want to open several bank accounts at different financial institutions throughout your lifetime to take advantage of higher interest rates.
Whatever the reason, it’s important to know how money transfers work and what options are available so that you can make the choice that works best for you.
Let’s look at different ways to transfer money from one bank to another.
What are bank-to-bank transfers?
Also known as an external transfer, a bank-to-bank transfer is the process of moving funds from one bank account to another. Transferring money between banks by electronic transfer (ACH) means you won’t have to visit a branch or physically move money between two banks.
6 ways to transfer money between banks
Here are six ways to transfer money from one bank to another, online, in-person or by mail:
Bank-to-bank transfer
A bank-to-bank transfer is probably the most convenient and simple way to transfer money from one bank account to another.
To transfer money between banks, you’ll need to own both bank accounts and link the two. Plus, you’ll want to make sure you have enough funds to make the transfer online, or else the money won’t go through.
Also known as ACH transfers, these bank-to-bank transfers are usually free and fast. Here’s how it works:
- Set up the transfer with the sending bank
- The receiving bank receives it after 1 to 3 business days.¹
- The timing of the transfer depends on the individual bank and whether you’re transferring money domestically or internationally.
Check with your bank to find out if bank-to-bank transfers are free. This may not be true for all banks, and the process may differ slightly depending on your bank.
Peer-to-peer transfer
A third-party transfer is likely your best option if you’re sending money to someone else’s bank account. Peer-to-peer (P2P) payment services offer safe and fast ways to send money to friends, family, or a business.
These services are usually free, but some may charge a small fee for certain scenarios, such as transferring money on the same day or sending money via credit card.
Before using a P2P app to transfer money, make sure you understand the fees, timing, and policies of each app. For example, some payment apps don’t allow international transactions or may have transaction limits. In these situations, you may need to choose a different payment method or be prepared to pay a larger fee.
Wire transfers
A wire transfer will be useful when you need to move a large amount of money quickly. However, they usually come with a fee, which depends on whether you’re wiring money domestically or internationally. On average, wire transfer fees hover at $29 for domestic transfers and $49 for international transfers.
Wire transfers can be made directly through your bank or with a non-bank provider, such as Wise and Western Union. In general, you’ll need the recipient’s name, account, and routing numbers. These transfers are usually available between a couple of hours and 1 business day.²
Wire transfers are nearly impossible to reverse, so take extra care to ensure you’re sending the right amount to the right person.
Write a check
Writing a paper check might seem like an old, outdated way to send money, but paper checks are still relevant in today’s technology-driven world. They are a straightforward way to transfer money between banks.
Simply write yourself a check (standard or cashier’s check) for the amount you want to transfer. Afterward, deposit it into your new account.
The check may take a few business days to be deposited and cleared into your account. For your convenience, some banks and financial institutions offer mobile check deposits via their mobile banking app.
Email money transfers (EMTs)
Another way to send money from one bank to another is by email money transfer (EMT). Financial institutions offer this service, which enables users to transfer funds between personal accounts using email or cell phone numbers.
When using an EMT, the participating banks email the recipient with the transfer information. The money is then delivered through a transfer network, such as Zelle or Google Pay.
Transferring funds through an EMT is typically free for the recipient, though the sender usually pays a small fee. If you’re the sender, the recipient’s bank account information isn’t needed.
However, the recipient will need to answer some security questions before they have access to the funds. This method generally takes a few days before the money appears in the recipient’s account.
Third-party mobile apps
You can also send or receive money through a third-party mobile app, such as Apple Pay, Google Pay, or Zelle. These platforms do not require a bank account to use their services.
In addition to sending or receiving money to friends, family, other individuals, or businesses, you can store debit and credit card information on a third-party mobile app.
Transfers on third-party mobile payment apps can be lightning-fast and in real-time or take up to a few days. However, instant transfers may incur a fee. The fees and daily and weekly limits on these apps depend on the platform and type of transfer.
Things to consider when transferring money
To better help you decide which type of money transfer is best for your needs, consider the following:
- Speed. How quickly do you need the money?
- Compare fees. There are many options for fee-free transfers. That said, sometimes, it might be a better option to pay a small bank fee to transfer money between banks to meet your immediate needs.
- Know the recipient’s account information. For most money transfer services, you will need to know the recipient’s name and account information.
Different ways to go about it
Whether you’re switching banks, sending money to a friend, or opening a new account at your current bank, transferring money from one bank account to another shouldn’t be a struggle. As you can see, several easy ways to send money online exist.
There are several ways to transfer money from one bank to another, so do some research. Look for what’s fast, secure, and inexpensive. That way, you can pick the best option and move money swiftly and efficiently.
Curious to learn about online banking? Read more about how it works!
FAQs
How do I transfer money from one bank to another internationally?
An ACH transfer, third-party payment service, or international money order allows you to send money internationally. You can also transfer money via an international money transfer service provider such as Wise or MoneyGram. However, you’ll want to be mindful of fees and exchange rates.
How do I transfer money to someone else's bank account?
Money can be transferred to someone else’s bank account via P2P payments, paper checks, wire transfers, and money orders.
How long does it take to transfer money between banks?
The time it takes to transfer money between banks depends on several factors: the method, your bank, and its terms all play a role.
Is it safe to transfer large sums of money between bank accounts?
Most bank transfer services are considered safe and secure ways to send and receive money. However, always be cautious when using money-transferring services, especially online. Read up on online scams and practice safe online banking techniques.
What’s the fastest way to send money?
The quickest way to send money is usually through an electronic funds transfer (EFT), which is a money transfer sent via an electronic network. EFTs include payment apps, online bill pay, direct deposit, and wire transfers.