How to Transfer Money Between Banks

Quick answer

• Most transfers between US banks are free and can be initiated online through your bank’s website or mobile app.
• ACH transfers are common for moving funds between different financial institutions.
• Wire transfers are faster but usually involve fees.
• Consider the speed, cost, and security of the method before choosing.
• Ensure you have the correct account and routing numbers for the destination account.
• Keep records of your transfer confirmations.

Who this is for

• Individuals looking to consolidate accounts or move money to a new bank.
• People who need to send funds to family or friends at a different financial institution.
• Anyone managing multiple bank accounts and needing to rebalance funds.

What to check first (before you act)

Goal and timeline

What are you trying to achieve by moving money? Is it to consolidate accounts, save on fees, access better interest rates, or simply move funds for a specific payment? Your goal will influence the best method. How quickly do you need the money to arrive? This is crucial for choosing between faster, potentially costlier methods and slower, free options.

Current cash flow

Understand your current income and expenses. Ensure you won’t be overdrawing your account or leaving yourself short of funds for upcoming bills by transferring money. It’s wise to keep a buffer in your source account until the transfer is confirmed.

Emergency fund or safety buffer

Do you have an adequate emergency fund in place? Moving large sums of money can sometimes leave you temporarily vulnerable. Ensure you have at least 3-6 months of living expenses saved in an accessible account before making significant transfers, especially if it leaves your primary checking account depleted.

Debt and interest rates

If you’re transferring money to pay off debt, compare the interest rate on the debt to the interest rate you might earn on the money if you held it elsewhere. Also, be aware of any overdraft fees your bank might charge if a transfer causes your account balance to go below zero.

Credit impact

Generally, transferring money between your own accounts at the same or different banks has no direct impact on your credit score. However, if you are transferring money to avoid a payment or manage debt in a way that leads to missed payments, that can negatively affect your credit.

Step-by-step (simple workflow)

1. Identify your transfer goal and timeline

What to do: Clearly define why you’re moving money and when you need it to arrive.
What “good” looks like: You have a specific reason (e.g., consolidating savings, paying a bill) and a clear timeframe (e.g., within 1-2 business days, anytime this week).
A common mistake and how to avoid it: Not considering the timeline, leading to choosing a slow method for an urgent need. Avoid this by asking yourself, “Does this need to be there by X date?”

2. Choose your transfer method

What to do: Select the best method based on speed, cost, and security. Common options include ACH transfers, wire transfers, and bank bill pay.
What “good” looks like: You’ve picked a method that balances your needs for speed and cost. For example, using free ACH for routine transfers and a wire transfer only for urgent, large sums where the fee is justified.
A common mistake and how to avoid it: Automatically choosing the fastest method without checking costs. Avoid this by comparing fees and transfer times for each option.

3. Gather necessary information

What to do: Collect the recipient’s bank name, account number, and routing number. For wire transfers, you might also need their address.
What “good” looks like: You have all the correct details accurately recorded. Double-checking is key.
A common mistake and how to avoid it: Typos in account or routing numbers. Avoid this by carefully verifying each digit with the recipient or your bank’s official documentation.

4. Initiate the transfer

What to do: Log in to your online banking portal or mobile app, navigate to the transfer section, and follow the prompts.
What “good” looks like: The transfer initiation process is clear, and you’ve entered all required information correctly.
A common mistake and how to avoid it: Starting the transfer without confirming you are logged into the legitimate bank website or app. Avoid this by always typing the bank’s web address directly into your browser or using the official mobile app.

5. Confirm transfer details

What to do: Before submitting, review all the details: amount, source account, destination account, and estimated arrival time.
What “good” looks like: You’ve double-checked all information and are confident it’s accurate.
A common mistake and how to avoid it: Rushing through the confirmation screen. Avoid this by taking an extra moment to read every field carefully.

6. Submit the transfer

What to do: Click the final confirmation button to send the money.
What “good” looks like: The system confirms the transfer has been initiated.
A common mistake and how to avoid it: Assuming the transfer is complete just because you clicked “submit.” Avoid this by waiting for the confirmation screen.

7. Save confirmation details

What to do: Take a screenshot or print a copy of the transfer confirmation screen. Note any reference numbers.
What “good” looks like: You have a clear record of the transaction, including date, amount, and confirmation number.
A common mistake and how to avoid it: Not saving proof of the transfer. Avoid this by always documenting the transaction immediately.

8. Monitor your accounts

What to do: Check both your sending and receiving accounts over the next few business days to ensure the money debited correctly and credited as expected.
What “good” looks like: The funds leave your source account and arrive in your destination account within the expected timeframe.
A common mistake and how to avoid it: Forgetting to check if the transfer completed. Avoid this by setting a reminder to check your accounts a day or two after the expected arrival.

9. Resolve any discrepancies

What to do: If the transfer is delayed, incorrect, or doesn’t appear, contact your bank immediately.
What “good” looks like: Any issues are identified and resolved promptly by your bank’s customer service.
A common mistake and how to avoid it: Waiting too long to report an issue. Avoid this by contacting your bank as soon as you notice a problem.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Typos in routing or account numbers	Funds sent to the wrong account, potentially lost or delayed for weeks/months.	Double-check all numbers before submitting; contact your bank immediately if an error is suspected.
Not confirming the recipient’s bank details	Similar to typos, money can go astray.	Verify details with the recipient or their bank statements.
Choosing a slow method for an urgent need	Missing payment deadlines, incurring late fees, or damaging relationships.	Always consider your timeline and choose a method that meets it.
Ignoring transfer fees	Unexpectedly lower net transfer amounts, impacting budgets.	Always check for fees before initiating a transfer, especially for wire transfers.
Not saving confirmation numbers	Difficulty tracking or disputing a transaction if it goes wrong.	Save screenshots or print confirmations for all transfers.
Overdrafting your source account	Incurring hefty overdraft fees from your bank.	Ensure sufficient funds remain in the source account to cover the transfer and any buffer.
Assuming a transfer is instant	Missing deadlines or making other financial commitments based on an incorrect assumption.	Understand that ACH transfers can take 1-3 business days; wire transfers are faster but still have cut-off times.
Using unsecured public Wi-Fi for transfers	Risk of sensitive banking information being intercepted.	Always use a secure, private network for online banking.
Not understanding daily/monthly transfer limits	Inability to complete a large transfer in one go, requiring multiple steps.	Check your bank’s transfer limits beforehand.
Failing to monitor accounts after transfer	Not realizing a transfer failed or was incorrect until it’s too late to easily fix.	Set reminders to check both accounts after the expected transfer time.

Decision rules (simple if/then)

• If the transfer is urgent (same day or next day), then consider a wire transfer, because they are typically the fastest method, but be aware of the associated fees.
• If the transfer is for a standard bill payment or moving funds between your own accounts, then use an ACH transfer or internal bank transfer, because these are usually free and take 1-3 business days.
• If the amount is small and not time-sensitive, then an ACH transfer is likely sufficient, because it’s free and the slight delay is not an issue.
• If you are sending money to someone else for the first time, then double-check all their banking details meticulously, because errors can be very difficult and time-consuming to resolve.
• If you are transferring a large sum, then check your bank’s daily and monthly transfer limits, because exceeding them will prevent the transfer from completing.
• If you are concerned about fees, then compare the cost of a wire transfer against the cost of potential late fees on a bill, because sometimes paying a wire fee is cheaper than missing a payment.
• 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 instantaneous and always free.
• If you receive an unexpected request to transfer money, then be highly suspicious and verify the request through a separate, known communication channel, because this could be a scam.
• If you are initiating a transfer from a mobile device, then ensure you are on a secure Wi-Fi network or using cellular data, because public Wi-Fi can be insecure.
• If you are transferring money to a new bank account, then wait for confirmation that the funds have arrived before closing your old account, because you don’t want to be without access to your money.

FAQ

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

A: This depends on the method. ACH transfers typically take 1-3 business days. Wire transfers can be same-day if initiated before the cut-off time. Internal transfers between accounts at the same bank are usually instant.

Q: Are there fees for transferring money between banks?

A: Many common methods, like ACH transfers between different banks or internal transfers, are free. Wire transfers almost always have a fee, which can vary by bank. Check with your bank for specific fee schedules.

Q: What information do I need to transfer money?

A: You’ll generally need the recipient’s full name, their bank’s name, their account number, and the bank’s routing number. For wire transfers, you may also need their physical address.

Q: Can I transfer money from my bank account to someone else’s?

A: Yes, you can transfer money to another person’s bank account using ACH transfers or wire transfers, provided you have their correct banking details.

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

A: ACH transfers are processed in batches and are generally slower but free or low-cost. Wire transfers are processed individually and are much faster but usually come with a higher fee.

Q: What happens if I enter the wrong account number?

A: If the account number is incorrect but the routing number is correct, the funds might be rejected and returned to your account, which can take several days. If both are incorrect or belong to someone else, recovering the funds can be very difficult.

Q: Can I cancel a money transfer?

A: Canceling a transfer depends on the method and how far along it is in the process. ACH transfers can sometimes be canceled before they are fully processed, while wire transfers are generally irreversible once sent.

Q: How do I transfer money between my own accounts at different banks?

A: You can typically initiate this through the online banking portal of either bank. You’ll need the routing and account number of the external bank. This is usually done via ACH.

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

• Specific daily or monthly transfer limits for every bank (check your bank’s website or app).
• International money transfers (these use different systems like SWIFT and often have higher fees and different regulations).
• Using third-party payment apps like Venmo, PayPal, or Zelle for bank-to-bank transfers (these have their own interfaces and rules).
• Detailed information on overdraft protection plans or how they interact with transfers.