How to transfer money from one bank account to another
Transferring money from one bank account to another doesn’t have to be complicated. Moving money around has never been easier thanks to online banking and various other methods. Here’s a quick, hassle-free guide on the different types of bank transfers to help you get your money where it needs to go.
What is a bank transfer?
A bank transfer means sending money from one bank account to another. Typically, domestic and international transfers might charge fees. Transferring money digitally is safer than using cash, as it’s easier to track. Hence, it helps protect against potential theft & scams.
Bank transfers usually occur between:
- Two accounts at the same bank (intra-bank transfer)
- Two accounts at different banks (inter-bank transfer)
- Your account and someone else’s account within the same country (domestic transfer)
- Your account and another person’s account in a different country (international transfer)
How to transfer money to another bank account: A quick glance
Method | Speed | Cost | Transfer Limits (Domestic) | Transfer Limits (International) | Best For |
Internal Transfer (Intra-Bank Transfer) | Same day or instant | Low Cost(Sometimes Free) | High (often unlimited) | N/A | Transferring between your accounts at the same bank |
External Transfer | 1-3 business days | Varies (may be free) | Varies by bank ($5,000 – $50,000 daily) | N/A | Transferring between accounts at different banks within the same country |
Wire Transfer | Same business day or few hours | High ($5+ domestic, $25+ international) | High (often up to $100,000+) | High (often up to $100,000+) | Urgent transfers of large sums |
Paper Check | Several business days | Free to write the check | Varies by bank | Varies by bank | Low-tech option for any amount, but slowest method |
SEPA Instant Credit Transfer (EU) | Less than 10 seconds | Varies by bank (must be similar to domestic transfers) | Up to €100,000 | N/A | Urgent transfers within the EU |
SEPA Credit Transfer (EU) | 1 business day | Varies by bank (must be similar to domestic transfers) | Up to €999,999,999.99 | N/A | Standard transfers within the EU |
Money Transfer Service (Wise, Remitly, WorldRemit, etc.) | 2-5 business days | Lower fees than bank transfers | Varies by service | Varies by service | Sending money internationally, often with better exchange rates than banks |
Things to consider before transferring money
When making a money transfer to another account, it’s essential to consider several factors to ensure the process is smooth, efficient, and safe.
Speed & urgency
Determine how quickly the money needs to arrive. For urgent transfers, a wire transfer might be necessary, although it typically incurs a fee.
Compare fees
Different transfer methods come with varying fees. Wire transfers can be costly but are safer for large amounts that need to be sent quickly. On the other hand, P2P transfer is ideal for smaller amounts.
Recipient’s account information
Some methods require the recipient’s name, routing number, and account number.bP2P transfers only require a phone number or email.
Transfer limits & restrictions
Check transfer limits imposed by your bank. Exceeding limits may result in fees.
5 Ways to transfer money from one bank to another
Several methods are available to transfer money from one bank account to another. Here are the five safest ways to transfer money across different bank accounts.
Internal electronic funds transfers
If you have multiple accounts at the same bank, such as a checking and a savings account, moving money between them is easy. You can make an internal transfer through your bank’s website or mobile app via the transfer funds option. You can set up one-time or recurring transfers between connected accounts. Most intra-bank transfers settle immediately or within one business day.
External electronic funds transfers
External transfer refers to sending money to an account at a different bank. You need the other bank’s routing number as well as your own account number to make an external transfer. Once the accounts are linked, you can transfer money between them as needed.
Wire transfers
Wire transfers are a quick and secure way to send money to external bank accounts. However, they typically come with a fee. This method is useful for sending large sums of money immediately, as funds are usually available within one business day or even a few hours.
Paper checks
Paper checks are another method to move money between accounts. With mobile check deposit now common, you can write and deposit a check from home. Clearing may take a few business days, appearing as pending until cleared.
How to make an intra-bank transfer
An intra-bank transfer moves money between accounts within the same bank. It’s the simplest type of transfer, especially with online banking.
Here’s a step-by-step guide on how to make an intra-bank transfer:
First, Log in to your online bank account.
Next, Find the transfer money option.
Here, you can choose to transfer money internally between accounts at the same bank.
Then, Select the account to transfer from and the account to transfer to.
If transferring to someone else, double-check their bank details.
Now, Enter the transfer amount and select the transfer date.
Finally, Confirm the transfer and relax while the bank processes it.
How to transfer funds domestically between different banks
Make sure the recipient, whether it’s an individual or a business, is trustworthy before making any money transfer. Moreover, never give your account details to someone you don’t know, and avoid making transfers to people you’ve only met online.
It’s safer to use a credit card or a digital payment system for online purchases, as these methods offer better protection and easier refunds if something goes wrong.
Follow these steps to make an inter-bank transfer (between different banks) domestically:
- Open your bank’s website or mobile app and enter your login credentials to access your account.
- Look for the option typically labeled “Transfer Money” or “Payments” in the main menu.
- Choose the option to make an external transfer, which allows you to send money to an account at a different bank.
- Enter the recipient’s full name, bank account number, and the bank’s routing number. Some banks may also require the recipient’s address and the bank’s SWIFT code for international transfers.
- Specify the amount of money you wish to transfer and select the date you want the transfer to be executed. You can often choose to make the transfer immediately or schedule it for a future date.
- Carefully double-check all entered details. Confirm the transfer to initiate the transaction once you are sure everything is correct.
How to transfer money internationally
Transferring money internationally involves different methods depending on whether you’re sending money within or outside the European Union (EU).
To transfer money abroad:
- Choose the transfer method based on your destination (within or outside the EU).
- Follow the specific steps provided by your bank or transfer service for international transfers.
By following these steps, you can ensure your money gets to where it needs to go safely and quickly.
How to transfer money within the EU
If you’re based in the EU and need to send money to another bank account within the EU, you can use SEPA (Single Euro Payments Area). SEPA makes cross-border EU bank transfers hassle-free, and almost as easy as domestic transfers.
Types of SEPA transfers
- SEPA Credit Transfer
Ideal for one-off payments up to €999,999,999.99.
- SEPA Instant Credit Transfer
Sends up to €100,000 in under 10 seconds (availability varies by bank).
- SEPA Direct Debit Transfer
It is used for making recurring payments, with no maximum transfer limit—just what’s agreed upon between sender and recipient beforehand.
How to transfer money outside of the EU
For EU-based individuals looking to transfer money outside SEPA countries, several options are available. Transferring directly through your bank often incurs higher fees due to hidden charges within exchange rates and higher up-front fees.
Using a money transfer service like Wise (formerly TransferWise) can be more cost-effective. Wise offers transparent charges and mid-market exchange rates.
How long do bank transfers take?
The duration for your money to reach the recipient’s account depends on the transfer method:
- Domestic transfers within the same bank: A few seconds to 24 hours.
- Domestic transfers between different banks: 1 to 3 days.
- SEPA Credit Transfers: 1 business day.
- SEPA Instant Credit Transfers: Less than 10 seconds.
- SEPA Core Direct Debit Transfers: Minimum of 2 business days.
Bank transfer limits and fees
Transfer limits and fees depend on the type of transfer:
- Domestic transfers within the same country: Usually free, but limits vary by bank policy.
-
SEPA transfers within the EU: Must cost the same as domestic transfers by law.
- SEPA Credit Transfer: Up to €999,999,999.99.
- SEPA Instant Credit Transfer: Up to €100,000.
- SEPA Core Direct Debit Transfers: Limits set by the sender and recipient.
-
International transfers with Wise: Minimal upfront fee (around 0.5% of the transfer amount). Limits depend on the currencies involved.
- For example, expect up to 1 million USD to the U.S., 1.5 million AUD to Australia, and no limit to Canada.
The Bottom Line
Transferring money between banks is easy if you know your options. Just keep in mind to consider the time and costs associated with each transfer method to avoid unnecessary fees and ensure your money reaches its destination quickly.
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Frequently Asked Questions (FAQs)
How do I transfer money to someone else’s bank account?
To transfer money to someone else’s bank account, you can use various methods depending on the urgency and amount. You can use internal transfers within the same bank, external transfers between different banks, wire transfers for larger amounts, or mobile-deposited paper checks.
How can I transfer money to another bank account online?
To transfer money to another bank account online. First, log in to your online banking account. Then, select the option to transfer money and choose the type of transfer (internal or external). Next, enter the recipient’s bank details, including routing and account numbers for external transfers. Finally, review the details, enter the amount, and confirm the transfer.
What details are needed for a bank transfer?
For a bank transfer, you typically need the recipient’s full name to match their bank records, the bank’s name and address (especially for international transfers), the bank’s routing number, the recipient’s account number, and their contact information.
How much money can you transfer from one bank to another online?
The amount you can transfer online varies by method and bank policies. Internal transfers often have unlimited or high limits, while external transfers typically range from $5,000 to $50,000 per day. Wire transfers offer higher limits, often up to $100,000 or more. SEPA transfers within the EU can be up to €999,999,999.99.
What is the fastest way to transfer money between banks?
The fastest way to transfer money between banks is wire transfer, through which funds are available within one business day or a few hours. In the EU, SEPA Instant Transfers are the fastest taking only 10 seconds.