Here's how to link your accounts and transfer money.
Transferring money from one bank to another can be done for a variety of reasons.
Maybe you want to set up recurring transfers from your checking account, which is at a different financial institution, to a high-yield savings account that you've opened at a new bank because you need to send money to family members. Or perhaps you decided to change banks completely.
Although it might appear difficult, sending money back and forth between banks is actually rather easy.
Using online banking, money transfers between banks can be done quickly and securely.
5 procedures for money transfer to a different bank
1. Link the two accounts together. Simply sign in to the first bank's website or mobile app and select "Add an Account," "Link Account," or "Add External Account" from the menu. Here, you're establishing a connection that will transfer your funds to a different bank.
2. Give the information for the other bank account. The unique 10- to 12-digit number for your account as well as the routing number from your other bank can be found there. This account number can be found on your monthly bank statement as well as printed at the bottom of your checks to the right of the bank's routing number.
3. Make sure the second account belongs to you. The first bank may require you to submit a username and password for the other account or make a small transfer, frequently only a few pennies, from one bank to the other to prove that this receiving bank account is likewise yours.
4. "Verify your deposits" should be chosen. After then, it will take the first bank one or two business days to certify that your accounts have been linked.
5.Create a transfer or transfers. Log on to the sending bank's website or mobile app to send money from the first bank to the newly linked external account.
Enter the desired monetary amount and then choose the sending and receiving accounts. Additionally, a date selection option and a "one-time" or "recurring" transaction selection option will both be available (say, once a month to pay a particular bill).
Finish the transaction, then wait for a new screen or message to appear to confirm that it has been entered.
How bank transfers are carried out
The Automated Clearing House system, or ACH, is used by banks to transfer oney between them. It can process a huge volume of transactions in a few of hours and is quicker than wire transfers.
The ACH is used to process many banking services, including online bill payments and employer-used direct deposits of employee paychecks.
Using bank websites or smartphone apps, online technology is the quickest way to transfer money across banks.
The fact that some financial institutions impose a tiny "external transfer fee" — often between $3 and $10 — for transferring money to other banks is vital to remember. Different banks have different policies; some charge nothing to receive money and only charge to send it out, and vice versa.
Check the bank's website to learn the fees it levies for bank transfers if you already have a bank account there and are thinking about opening a second one there. Additionally, confirm whether your current bank charges transfer fees.
How long does it take for a bank to bank transfer?
Bank to bank transfers are simple to set up, but they don't always process right away. Whether you set up a one-time or recurring transfer, the completion period is typically two to three business days.
This indicates that it's a wise idea to send your money a few days before you want it to show up in the other account. When your money doesn't arrive when it should, it's not fun.
Although it is frequently free to transfer money across connected bank accounts at other institutions, there may be a cap on the amount you can send each time. For bank-to-bank transfer restrictions, consult your bank's policies.
substitutes for bank transfers
Person-to-person, or P2P, transfers are one alternative if you need a quicker way to send money to someone else. They are among the most rapidly expanding forms of electronic payment.
Using a cellphone number or the internet, users of P2P payment systems can transfer money from their bank accounts or credit cards to another person's account.
The most well-known P2P payment systems are as follows:
One of the most popular financial services available today is PayPal, the first major online money transfer service. In addition to serving as a digital wallet for keeping and utilizing money online, PayPal accounts are free to open and use. When you create a new PayPal account, the website requests that you link a bank account or credit card.
Once your account is linked to a funding source, you can make secure online purchases from merchants like Amazon and eBay
If you run an online business, PayPal payments can be accepted, and the money is then transferred right to the associated bank account. PayPal also allows you to send and receive money worldwide.
Due to its capability to divide costs among groups of friends, the electronic cash transfer service Venmo is becoming increasingly popular. It's free to use and great for sending little sums of money.
Download the Venmo app to your smartphone to create a Venmo account. Add and verify your bank account after entering your phone number and email address.
Once your bank account and Venmo account are linked, you may transfer funds back and forth between them, use Venmo as an online wallet to keep your spending money safe, and send and receive payments from other Venmo users. Venmo only functions with American bank accounts.
The P2P payment system from the leader in internet technology is called Google Pay. Users can shop at the numerous online and physical stores that now accept payments using Google Pay, or they can send money to friends and family members who also have the Google Pay app.
Holding your phone up to the payment terminal allows you to utilize the app at any retailer that accepts tap-to-pay transactions.
Install the Google Pay app on your Apple or Android smartphone to get going. Add a payment source, such as a credit card or bank account. You can send money to and from the Google Pay app and simply send money to other Google Pay users in supported countries after your bank account is connected.
a convenient substitute: personal checks
Despite the ease of internet banking, some payments simply cannot be made via electronic transfer.
The recipient could prefer that you write a check when you are paying rent, putting down a down payment on a new car, or purchasing anything at an auction.
When you open a checking account, you'll get or buy a checkbook with personal checks in it that you can use to withdraw funds.
A personal check that has the recipient's name filled in and written on it can be deposited into that person's own bank account. If you have enough funds in your account to pay the amount of the check, the money will then be transferred from your bank account to theirs.
The check will "bounce," the payment won't process, and you'll be charged a fee if there are insufficient funds. Make sure you always have adequate funds in your account before writing a check to prevent this problem.
In lieu of a personal check, sellers may request a certified check or a cashier's check, which are both more safe options.