How to Make Bank Transfers: Step-by-Step Guide

Quick answer

• Identify the type of transfer needed (domestic vs. international, one-time vs. recurring).
• Gather recipient’s bank details accurately.
• Choose your transfer method: online banking, mobile app, in-person, or third-party service.
• Verify transfer limits and potential fees with your bank.
• Double-check all entered information before confirming.
• Keep a record of the transaction for your reference.

Who this is for

• Individuals needing to send money to another person or business.
• Those who want to move funds between their own accounts at different banks.
• Anyone looking for a secure and efficient way to transfer money.

What to check first (before you act)

Goal and timeline

Before initiating any transfer, clarify why you are sending the money and when it needs to arrive. Is it for a bill payment due tomorrow, a gift arriving next week, or a regular rent payment? Your goal will influence the urgency and the method you choose. Some methods are faster but may cost more, while others are slower but potentially cheaper.

Current cash flow

Review your account balance to ensure you have sufficient funds to cover the transfer amount, plus any associated fees. Overdrafting can lead to significant charges and damage your financial standing. Understanding your current cash flow helps prevent unexpected shortfalls.

Emergency fund or safety buffer

While not directly related to making a single transfer, having an emergency fund is crucial for overall financial health. If an unexpected expense arises after you’ve sent money, your emergency fund can prevent you from going into debt or having to cancel important payments. Aim to have 3-6 months of living expenses saved.

Debt and interest rates

Consider if the money you are about to transfer could be better used to pay down high-interest debt. If you have credit card debt with a high Annual Percentage Rate (APR), paying that down might offer a better return than sending money elsewhere, especially if the transfer is not time-sensitive or a required payment.

Credit impact

Generally, making a standard bank transfer does not directly impact your credit score. However, if a missed payment or an overdraft occurs due to insufficient funds after a transfer, it can negatively affect your credit. Always ensure you have the funds available before initiating a transfer.

Step-by-step (simple workflow)

1. Determine the transfer type: Decide if you’re sending money domestically or internationally, and if it’s a one-time or recurring transfer.

• What “good” looks like: You clearly understand the parameters of your transaction.
• Common mistake and how to avoid it: Assuming all transfers are the same. Avoid this by asking yourself if the recipient is in another country or if this needs to happen regularly.

2. Gather recipient’s information: Collect the recipient’s full name, bank name, account number, and routing number (for domestic transfers). For international transfers, you’ll likely need their IBAN (International Bank Account Number) and SWIFT/BIC code.

• What “good” looks like: You have all the necessary details, and they are accurate.
• Common mistake and how to avoid it: Typos or missing digits in account or routing numbers. Always double-check these numbers by comparing them to a reliable source, like a voided check or an official statement from the recipient.

3. Choose your transfer method: Select how you want to send the money. Options include your bank’s online portal, mobile banking app, visiting a branch, or using a reputable third-party money transfer service.

• What “good” looks like: You’ve chosen a method that balances convenience, speed, and cost for your specific needs.
• Common mistake and how to avoid it: Only considering one method. Explore different options; your bank’s app might be easiest for a quick domestic transfer, while a specialized service could be better for international payments.

4. Log in or visit your bank/service: Access your chosen platform. This might involve logging into your online banking, opening your bank’s mobile app, or going to a physical branch.

• What “good” looks like: You are securely logged into your financial institution’s system or are interacting with a trusted representative.
• Common mistake and how to avoid it: Using public Wi-Fi for sensitive banking transactions. Always use a secure, private network to protect your login credentials.

5. Navigate to the transfer section: Look for options like “Transfers,” “Send Money,” “Wire Transfer,” or “Bill Pay.”

• What “good” looks like: You can easily find the feature that allows you to initiate a payment or transfer.
• Common mistake and how to avoid it: Mistaking a payment to a saved biller for a direct bank transfer. Ensure you’re selecting the correct function for sending funds to a specific account.

6. Enter transfer details: Input the recipient’s information you gathered in step 2, the amount you wish to send, and any memo or reference notes.

• What “good” looks like: All fields are correctly filled with the precise information required.
• Common mistake and how to avoid it: Incomplete or ambiguous memo fields. If the recipient needs to know the purpose of the payment (e.g., “Rent May 2024”), include it clearly.

7. Review transfer limits and fees: Your bank or service will display any applicable transfer limits (daily, weekly, per transaction) and associated fees. International transfers often have higher fees.

• What “good” looks like: You are aware of all costs and understand if your requested amount is within limits.
• Common mistake and how to avoid it: Not checking fees upfront. Unexpected charges can eat into the amount sent or cause you to send less than intended. Always look for a fee disclosure before proceeding.

8. Confirm and authorize the transfer: Carefully review all the details one last time – recipient name, account numbers, amount, fees. Then, authorize the transaction, often by entering a password, PIN, or a one-time verification code sent to your phone.

• What “good” looks like: You have a confirmation screen or email indicating the transfer has been submitted.
• Common mistake and how to avoid it: Rushing the final confirmation. This is the last chance to catch an error. Take a deep breath and verify every detail.

9. Save confirmation details: Once confirmed, save the transaction reference number, date, amount, and recipient information. This is your proof of payment.

• What “good” looks like: You have a readily accessible record of the transaction.
• Common mistake and how to avoid it: Not keeping records. If there’s a dispute or the funds don’t arrive, you’ll need this information to track it. Take a screenshot or print the confirmation page.

10. Monitor recipient’s account (optional): For time-sensitive transfers, you might want to follow up with the recipient to confirm they have received the funds.

• What “good” looks like: The recipient confirms receipt, closing the loop on the transaction.
• Common mistake and how to avoid it: Assuming the money arrived without confirmation. While most transfers are reliable, a quick check can prevent misunderstandings.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Incorrect recipient account number	Funds sent to the wrong person/entity, potentially lost or difficult to recover.	Always verify account numbers with the recipient and double-check before confirming.
Wrong routing number	Transfer may be rejected, delayed, or sent to an incorrect bank.	Ensure the routing number matches the correct bank and location for the recipient’s account.
Sending to a closed account	Funds may be returned, but with delays and potential fees.	Confirm with the recipient that their account is active and in good standing.
Not checking for fees	Higher-than-expected costs, reducing the net amount received or causing financial strain.	Always review the fee schedule before initiating a transfer. Compare fees across different services if possible.
Ignoring transfer limits	Transaction may be declined or split into multiple smaller transfers, incurring extra fees.	Know your bank’s or service’s daily/transactional limits and plan accordingly.
Using unsecured networks for online transfers	Risk of sensitive data interception, leading to identity theft or unauthorized account access.	Always use a secure, private Wi-Fi network or your cellular data for online banking and money transfers.
Not verifying recipient identity (for large sums)	Risk of sending money to a scammer, especially in peer-to-peer transactions.	For significant amounts, ensure you know and trust the recipient. Be wary of requests from unknown parties.
Forgetting to save confirmation details	Difficulty in tracking or disputing a transaction if issues arise, leading to potential financial loss.	Take a screenshot or save the confirmation page/email immediately after the transfer is complete.
Sending money to an incorrect currency (international)	Funds may be converted at an unfavorable rate or rejected by the recipient’s bank.	Ensure you are sending in the correct currency and that the recipient’s bank can accept it.
Overdrafting your account	Incurring hefty overdraft fees, potential negative impact on credit score, and loss of trust with your bank.	Always check your available balance and factor in transfer fees before initiating any transaction. Maintain a buffer in your checking account.

Decision rules (simple if/then)

• If you need to send money internationally, then use a service that specializes in international transfers because they often offer better exchange rates and lower fees than traditional banks.
• If the transfer is urgent and needs to arrive the same day, then consider a wire transfer or expedited service because these methods are designed for speed, though they may be more expensive.
• If you are sending money to a friend or family member domestically, then using your bank’s Zelle or a similar P2P service might be the easiest and fastest option because it’s integrated into many banking apps and typically free.
• If you are making a recurring payment, such as rent or a subscription, then set up an automatic transfer or bill pay because this ensures timely payments and avoids missed deadlines.
• If you are transferring a large sum of money, then verify the recipient’s identity and bank details multiple times because the risk of error or fraud increases with the amount.
• If you are concerned about fees, then compare the costs of your bank’s transfer service against reputable third-party money transfer providers because fees and exchange rates can vary significantly.
• If you are unsure about a request to send money, especially if it’s from someone you don’t know well or seems unusual, then pause and investigate further because it could be a scam.
• If your bank offers a specific type of transfer (e.g., ACH, wire), then understand the difference in speed and cost before choosing because ACH is generally slower and cheaper than wire transfers.
• If you are sending money to your own account at another bank, then check if your bank offers free internal transfers or linked account transfers because this is often the most cost-effective method.
• If a transfer seems to be taking longer than expected, then contact your bank or the transfer service with your confirmation number because they can provide an update or initiate a trace.

FAQ

What is a routing number?

A routing number is a nine-digit code that identifies a financial institution. It’s used for processing electronic payments and direct deposits, such as checks and ACH transfers. You can usually find it on the bottom of your checks or by contacting your bank.

What is an IBAN and SWIFT/BIC code?

These are used for international money transfers. The IBAN (International Bank Account Number) identifies a specific customer’s account at a bank in a particular country. The SWIFT/BIC (Bank Identifier Code) code identifies the bank itself globally.

How long does a bank transfer take?

Domestic transfers, especially using services like Zelle or within the same bank, can be nearly instant. ACH transfers typically take 1-3 business days. International wire transfers can take anywhere from a few hours to several business days, depending on the countries and banks involved.

Are bank transfers safe?

Generally, bank transfers are considered a secure method of moving money. Banks employ encryption and security protocols to protect transactions. However, it’s crucial to ensure you are using secure networks and providing accurate recipient information to avoid errors or fraud.

What happens if I enter the wrong account number?

If you enter an incorrect account number for a domestic transfer, the funds might be rejected and returned to your account, though this can take time and may incur fees. In some cases, the money could be sent to the wrong person if the number is close to a valid account. Always verify details carefully.

Can I cancel a bank transfer?

Canceling a bank transfer depends on its type and how far along it is in the processing. Instant transfers or those already processed are usually non-cancellable. For ACH transfers, you might have a short window to request a cancellation, but it’s not guaranteed. Wire transfers are typically final once sent.

What is the difference between a wire transfer and an ACH transfer?

A wire transfer is a faster, more direct method, often used for large or urgent transactions, and usually comes with higher fees. ACH (Automated Clearing House) transfers are processed in batches, making them slower but generally cheaper, and are common for direct deposits and bill payments.

How much does it cost to make a bank transfer?

Fees vary widely. Domestic transfers between accounts at the same bank are often free. ACH transfers can be free for consumers or have a small fee. Wire transfers typically have fees ranging from \$25-\$50 or more, especially for international transfers. Third-party services have their own fee structures.

What this page does NOT cover (and where to go next)

• Specific details on setting up international currency exchange services.
• Where to go next: Research international money transfer providers and their exchange rate policies.
• Advanced fraud detection and prevention strategies for businesses.
• Where to go next: Consult with financial institutions or cybersecurity experts on business fraud prevention.
• Legal implications of large-value or business-to-business transfers.
• Where to go next: Seek advice from legal counsel or a financial advisor.
• How to dispute a fraudulent transaction (beyond basic record-keeping).
• Where to go next: Contact your bank’s fraud department or the CFPB for guidance on dispute resolution.
• Detailed comparisons of specific third-party money transfer apps and services.
• Where to go next: Read reviews and compare features of popular money transfer services.