Home  /  Blog  /  how to transfer money to another bank account

how to transfer money to another bank account

How to transfer money from one bank account to another Transferring money from one bank account to another is now simpler and more straightforward than ever before. With the rise of online banking and various technological advancements, moving your funds has become a seamless process. Whether you’re sending money to a friend or making a […]
Updated 2 Aug, 2024

|

read

Mette Johansen

Midweight Copywriter

transfer money

How to transfer money from one bank account to another

Transferring money from one bank account to another is now simpler and more straightforward than ever before. With the rise of online banking and various technological advancements, moving your funds has become a seamless process. Whether you’re sending money to a friend or making a payment for services, there are multiple ways to complete a bank transfer. In this guide, we will walk you through the different types of bank transfers, making it easier for you to choose the method that best suits your needs, ensuring your money reaches its destination without any hassle. Whether you prefer digital banking solutions, traditional methods, or more advanced options, this guide will help you navigate the world of bank transfers with ease and confidence.

how to transfer money to another bank account

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

When deciding how quickly the money needs to arrive, it’s important to consider the urgency of the transfer. For transfers that require immediate or near-instant delivery, a wire transfer is often the best option. Wire transfers are typically processed quickly, sometimes within the same day or the next business day, depending on the financial institutions involved. However, it’s important to note that wire transfers usually come with a fee, which can vary based on the bank or service provider. While wire transfers are ideal for urgent situations, they are often the most expensive method. If speed is critical, the additional cost may be justified, but for non-urgent transfers, other methods could be more cost-effective.

Compare fees

Different transfer methods come with varying fees, and understanding these differences is key to selecting the right option for your needs. Wire transfers, while often the quickest option for large sums of money, can be costly. They are ideal for high-value transfers, especially when speed and security are paramount. The fees associated with wire transfers tend to be higher due to the added security measures and the manual processing involved, but they provide peace of mind when large amounts are involved and need to reach their destination quickly.

On the other hand, Peer-to-Peer (P2P) transfers, such as those offered by services like Venmo, PayPal, or Zelle, are perfect for sending smaller amounts of money. These services are typically faster and more affordable, with many offering free transfers for personal transactions. Although they may not offer the same level of security as wire transfers for large sums, P2P transfers are a great choice for everyday, low-cost transactions, making them ideal for smaller amounts.

Recipient’s account information

Certain transfer methods, such as wire transfers, require specific details about the recipient, including their full name, routing number, and account number. These details ensure that the funds are directed to the correct account and processed through the appropriate banking system. While this information is necessary for accuracy and security, it can make the process more cumbersome, especially if you’re dealing with a recipient in a different country or a less familiar bank.

In contrast, Peer-to-Peer (P2P) transfers simplify the process significantly. With P2P services, you only need the recipient’s phone number or email address. This streamlined approach eliminates the need for complex banking details, making it faster and more convenient, especially for smaller, informal transactions. P2P transfers rely on the recipient’s registered account with the service, meaning there’s no need to manually enter bank account details, making the process much easier and more accessible for everyday use.

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

how to transfer money to another bank account

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:

  1. Open your bank’s website or mobile app and enter your login credentials to access your account.
  2. Look for the option typically labeled “Transfer Money” or “Payments” in the main menu.
  3. Choose the option to make an external transfer, which allows you to send money to an account at a different bank.
  4. 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.
  5. 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.
  6. 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:

  1. Choose the transfer method based on your destination (within or outside the EU).
  2. 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 individuals based in the European Union (EU) who are looking to transfer money outside of the SEPA (Single Euro Payments Area) zone, several options are available. While it may be tempting to handle international transfers directly through your bank, this method often comes with higher costs. Banks typically charge not only for the transfer itself but also impose hidden fees embedded within exchange rates, which can significantly impact the total amount received by the recipient. Additionally, banks often require higher up-front fees for international transfers, which can make the process more expensive than anticipated.

A more cost-effective alternative for cross-border transfers is using a money transfer service such as Wise (formerly known as TransferWise). Wise is known for its transparent fee structure and its use of mid-market exchange rates, which are often more favorable than the exchange rates provided by traditional banks. This means that the transfer amount is calculated more fairly, without the added markups typically seen with bank transfers. With Wise, the charges are clear from the outset, allowing senders to know exactly what they will pay, making it a more economical choice for those sending money internationally.

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 has become a simple and convenient process, especially with the wide range of options available today. However, it’s essential to carefully consider the time it will take for the transfer to complete and the costs associated with each method to ensure you’re making the most cost-effective choice. Different transfer methods come with varying speeds and fees, so taking these factors into account will help you avoid unnecessary costs and delays. For example, while wire transfers are fast and secure, they often come with higher fees, especially for international transfers. On the other hand, Peer-to-Peer (P2P) services may be cheaper but could be slower for larger sums. By understanding your options and planning ahead, you can ensure that your money reaches its destination quickly and without incurring excessive fees.

Simplify your business finances today

Set up a low-cost business account in just 5 minutes with OneMoneyWay so you can focus on
growth for your business.

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.

Mette Johansen

Content Writer at OneMoneyWay

You may also like

How to open a company in latvia

How to open a company in latvia

How to open a company in Latvia? Latvia, a vibrant Baltic state strategically positioned at the crossroads of Europe, stands out as an exceptional destination...

read more

Get Started Today

Unlock Your Business Potential with OneMoneyWay

OneMoneyWay is your passport to seamless global payments, secure transfers, and limitless opportunities for your businesses success.