How to Transfer Funds Between Banks

Quick Answer

• Understand your bank’s transfer options: online, mobile app, in-branch, or phone.
• Gather account and routing numbers for both sending and receiving accounts.
• Consider transfer speed and potential fees associated with different methods.
• For larger sums, explore wire transfers or cashier’s checks for security.
• Always verify the recipient account details before initiating a transfer.
• Monitor your accounts to confirm the transfer is complete and accurate.

Who This Is For

• Individuals needing to move money from one of their accounts to another at a different bank.
• People consolidating accounts or managing finances across multiple institutions.
• Anyone looking to send money to a family member or friend by depositing it directly into their bank account.

What to Check First (Before You Act)

Goal and Timeline

Before you initiate any transfer, clearly define why you’re moving the money and when it needs to arrive. Are you consolidating savings, paying a bill that’s due soon, or simply reorganizing your finances? Your goal will dictate the best method. For example, a time-sensitive payment requires a faster (and potentially more expensive) transfer than a routine savings consolidation.

Current Cash Flow

Understand the balance in the account you’re sending money from. Ensure you have sufficient funds to cover the transfer amount, plus any potential fees, without overdrawing the account. Overdraft fees can quickly negate any benefits of a transfer. Review your recent transactions and upcoming scheduled payments to get a clear picture of your available balance.

Emergency Fund or Safety Buffer

If the funds you’re transferring are part of your emergency savings, consider the impact on your safety net. Ideally, you should have a separate, dedicated emergency fund that you don’t touch for routine transfers. If you must use emergency funds, have a plan to replenish them as soon as possible.

Debt and Interest Rates

If the money you’re transferring is intended to pay down debt, compare the interest rate on your debt to the interest earned (or lost) by holding the money in a savings account. It’s often more financially beneficial to pay down high-interest debt than to earn minimal interest on savings.

Credit Impact

While transferring funds between your own accounts generally has no direct impact on your credit score, be mindful of how the transfer might affect your credit utilization if you’re moving money from a checking account that also has overdraft protection linked to a line of credit. For transfers to others, ensure you’re not inadvertently facilitating a scam.

Step-by-Step: How to Send Money to a Bank

1. Identify the Sending and Receiving Accounts:

• What to do: Note down the full account number and the routing number for both the bank account you’re sending money from and the bank account you’re sending money to.
• What “good” looks like: You have the correct, verified account and routing numbers for both sides of the transaction. These are typically found on your checks or by logging into your online banking portal.
• Common mistake and how to avoid it: Using an incorrect routing or account number. Double-check every digit. A typo can lead to significant delays or funds being sent to the wrong account.

2. Choose Your Transfer Method:

• What to do: Decide on the best way to send the money based on speed, cost, and convenience. Options include online transfers, mobile apps, in-person at a branch, or by phone.
• What “good” looks like: You’ve selected a method that aligns with your timeline and budget.
• Common mistake and how to avoid it: Assuming all transfers are free and instant. Research fees and processing times for each method before committing.

3. Initiate the Transfer Online or Via Mobile App:

• What to do: Log in to your bank’s online portal or mobile app. Navigate to the “Transfers” or “Move Money” section. Select the “From” and “To” accounts, enter the amount, and schedule or submit the transfer.
• What “good” looks like: The transfer is successfully initiated, and you receive a confirmation number or email.
• Common mistake and how to avoid it: Not saving the confirmation details. Always record or screenshot the confirmation page.

4. Link External Accounts (If Necessary):

• What to do: If you’re transferring money to an account at a different bank for the first time, you’ll likely need to link that external account to your current bank’s system. This usually involves providing the external account’s routing and account numbers and sometimes making small verification deposits.
• What “good” looks like: The external account is successfully added and verified in your online banking.
• Common mistake and how to avoid it: Rushing the verification process. It can take a few business days for verification deposits to clear and for the account to become active for transfers.

5. Visit a Branch or Call Customer Service:

• What to do: If you prefer in-person assistance or are uncomfortable with online methods, visit your bank branch or call their customer service line to request a transfer.
• What “good” looks like: A bank representative guides you through the process, confirms details, and initiates the transfer.
• Common mistake and how to avoid it: Not bringing proper identification. You’ll need to prove your identity to conduct transactions in person or over the phone.

6. Consider a Wire Transfer (For Large or Urgent Amounts):

• What to do: If you need to send a large sum of money quickly and securely, a wire transfer might be appropriate. This involves instructing your bank to send funds directly to another bank.
• What “good” looks like: The wire transfer is initiated with all correct recipient details and confirmed by your bank.
• Common mistake and how to avoid it: Not confirming the exact wire instructions with the receiving bank. Small discrepancies can cause significant issues. Be aware that wire transfers usually incur higher fees.

7. Review Transfer Details Before Confirming:

• What to do: Before you hit “submit” or finalize the transaction, take a moment to review all the details: the amount, the “from” account, the “to” account, and any estimated fees or delivery times.
• What “good” looks like: You’ve confirmed all information is accurate and you understand the terms of the transfer.
• Common mistake and how to avoid it: Overlooking the transfer fee. This can lead to an unexpected deduction from your account.

8. Monitor Your Accounts:

• What to do: After initiating the transfer, keep an eye on both your sending and receiving accounts.
• What “good” looks like: The funds have been debited from the sending account and credited to the receiving account within the expected timeframe.
• Common mistake and how to avoid it: Assuming the transfer is complete without verification. Delays can happen, and it’s your responsibility to ensure the money arrived.

Common Mistakes (and What Happens If You Ignore Them)

Mistake	What it Causes	Fix
Incorrect routing or account number	Funds sent to the wrong person or account; significant delays; potential loss.	Double-check all digits before submitting. Contact your bank immediately if you suspect an error.
Not checking transfer fees	Unexpected deductions from your account; reduced amount received.	Always inquire about or check online for transfer fees associated with your chosen method.
Overdrawing the sending account	Overdraft fees, potential NSF (Non-Sufficient Funds) fees, damage to banking relationship.	Ensure sufficient balance, including potential fees, before initiating. Use a buffer or transfer from a different account if necessary.
Assuming instant transfer speeds	Missed deadlines for payments, late fees, or other financial penalties.	Understand the typical processing times for your chosen method (e.g., ACH can take 1-3 business days, wires are faster but costlier).
Not verifying the receiving account	Sending money to the wrong individual or scammer; funds may be unrecoverable.	Confirm recipient details, especially when sending to someone new. For external accounts, ensure they are properly linked and verified.
Not saving confirmation details	Difficulty tracking the transfer or proving it was sent if an issue arises.	Save screenshots or print confirmation pages for your records.
Initiating transfers on weekends/holidays	Delays in processing as banks are closed.	Plan transfers to occur on business days to avoid extended processing times.
Using a method not suited for the amount	For small amounts, high fees can erode value; for large amounts, insecure methods.	Choose transfer methods appropriate for the transaction size and urgency (e.g., ACH for routine, wires for large/urgent, Zelle/Venmo for small P2P).
Forgetting to link/verify external accounts	Inability to initiate transfers to a new bank.	Complete the account linking and verification process fully, allowing for the necessary verification deposits and time.
Not understanding the refund/reversal process	Difficulty recovering funds sent in error.	Familiarize yourself with your bank’s policies on reversals and disputes, though recovering funds sent to the wrong person can be challenging.

Decision Rules

• If you need to send money to your own account at another bank and speed is not critical, then use an ACH (Automated Clearing House) transfer because it’s typically free and reliable, though it may take 1-3 business days.
• If you need to send money to someone else’s account at another bank, then use a P2P (Person-to-Person) payment service like Zelle or Venmo if the amount is small and you trust the recipient, because these are fast and often free for linked bank accounts.
• If you need to send a large sum of money quickly and securely to another bank, then use a wire transfer because it’s the fastest and most secure method for significant amounts, but be aware of the associated fees.
• If you are transferring money between your own accounts at the same bank, then use the bank’s internal transfer function because it is usually instant and free.
• If you are unsure about the recipient’s bank details, then ask them to provide a voided check or share their account and routing number directly to avoid errors.
• If you need to send money urgently and the recipient’s bank is within the same network or has a direct partnership, then explore any instant transfer options offered by your bank, as these can be faster than standard ACH.
• If you are sending money to a business, then check if they accept specific payment methods like ACH or wire transfers, as personal P2P services may not be suitable or allowed for business transactions.
• If you have a history of overdrafts, then consider transferring funds from a savings account or using a method that doesn’t risk further overdrafts on your checking account.
• If you are sending money to a family member and want a traceable method, then use an ACH transfer or a wire transfer rather than cash or less formal methods.
• If you are sending a significant amount of money and want to avoid potential issues with daily withdrawal or transfer limits, then contact your bank beforehand to understand and potentially increase these limits.

FAQ

Q: How long does it take to transfer money between banks?

A: Transfer times vary. Internal transfers at the same bank are usually instant. ACH transfers between different banks typically take 1-3 business days. Wire transfers are often completed the same business day or within 24 hours.

Q: Are there fees for transferring money between banks?

A: Some methods are free, especially internal transfers or standard ACH transfers between your own accounts. Other methods, like wire transfers or certain P2P services for instant transfers, may incur fees. Always check with your bank.

Q: What information do I need to transfer money?

A: You’ll generally need the recipient’s full name, their bank’s routing number, and their account number. For transfers between your own accounts, you’ll need the details for both your sending and receiving accounts.

Q: Can I transfer money from my savings account to another bank?

A: Yes, you can typically transfer funds from a savings account, just as you would from a checking account, using methods like ACH or wire transfers. Be mindful of any withdrawal limits your savings account might have.

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

A: ACH transfers are processed in batches by the Automated Clearing House network and are generally slower and cheaper. Wire transfers are direct, real-time transfers between banks and are faster but usually more expensive.

Q: What happens if I send money to the wrong account?

A: If the account doesn’t exist, the transfer will likely be rejected and the funds returned. If the account belongs to someone else, recovering the funds can be difficult and may require legal action, so accuracy is crucial.

Q: Can I transfer money using my mobile banking app?

A: Yes, most modern mobile banking apps allow you to initiate transfers between your own accounts and to external accounts, as well as use P2P payment features.

Q: How do I link an external bank account for transfers?

A: You’ll typically do this through your online banking portal. You’ll need to provide the external account’s routing and account numbers. Your bank may send small verification deposits that you’ll need to confirm to complete the linking process.

What This Page Does Not Cover (and Where to Go Next)

• International money transfers: These involve different currencies, exchange rates, and often higher fees.
• Using third-party payment apps for business transactions: Many apps have terms of service that restrict commercial use.
• Specific tax implications of moving money: For example, large gift transfers may have reporting requirements.

Consider exploring topics like:

• Choosing the right bank account for your needs.
• Understanding different types of payment services.
• Managing your money across multiple financial institutions.