Transferring money from one bank account to another is one of the most popular ways to send money. It’s convenient, it’s easy to set up, and you have a number of options to find the most cost-effective transfer method for you. In this guide, we’ll cover transferring money between bank accounts in full to give you all the information you need.
With the vast majority of banks having user-friendly online banking capabilities and apps these days, it’s easier than ever to transfer money between accounts within the same bank.
Transfers within the same bank branch are usually made on the bank’s own internal network, allowing the process to be quick (instant in most cases) and free. Depending on your bank, your transfer may be processed instantly, or may take up to 24-hours – the time you process your transfer could also affect this.
Transferring money between banks remains a relatively straightforward process, but because the transaction is carried out on external networks, it may take a little longer.
In the US, most banks use the Automatic Clearing House (ACH) network. Generally regarded as a secure network for transferring money, the ACH process usually follows these steps:
If you’re sending money to another bank (domestically or internationally) you’ll need to have your recipient’s banking details to hand to complete the transfer. The details you’ll need include:
A bank transfer is one of the most popular ways of sending money domestically, simply because of how convenient it is. Domestic bank transfers can be initiated via your online banking app, by phone, or directly at a branch, and will often take no longer than 24 hours to complete (often faster).
To make a bank transfer with your bank, you’ll need:
While bank transfers are a convenient way to send money domestically, they can involve fees for both the sender and recipient in some cases. In addition, the amount of information required by your bank to make the transfer can be more of a hassle than it’s worth for some.
An alternative to using your bank to transfer money between bank accounts domestically is to use a peer-to-peer sending service, such as:
These apps are all relatively new (with the exception of PayPal) services enabling quicker, faster, and more efficient domestic transfers directly from one bank account to another. Both parties will usually need to have an account with the service being used, and a bank account linked to their account.
The sender then simply needs either the username, phone number, or email address of their recipient to make a transfer, which should be processed almost instantly.
The advantage of these peer-to-peer sending services is that they make sending smaller sums to friends and family so much easier – for example, splitting a bill at a restaurant or sharing the costs of a holiday are far easier when using someone’s phone number than having to source their full bank details.
One option is to use your bank to send a wire transfer between two bank accounts internationally. A wire transfer is the electronic transfer of money from one bank account to another, and covers a wide range of transfers completed online. Wire transfers can be initiated via your bank or with a money transfer provider, and tend to be a good way of getting your money to your recipient quickly.
To complete an international wire transfer, you’ll need to have a few details to hand. This includes:
An international money transfer service is another popular way to move your money from one bank to another internationally. Transfer providers are known for having generally lower transfer fees, fairer exchange rates, and faster transfer times than if you were to use your bank to send money abroad.
Additionally, you have more options when sending money with a specialist provider. For example, you can choose to pay for your transfer by:
To send a transfer, the process is much the same as if you were sending a wire transfer. You’ll need to have your recipient’s name and bank details to hand, and may need to provide your ID to verify your identity if you have not used the transfer provider previously.
Yasmin is the content writer for MoneyTransfers.com. With an English degree from the University of Nottingham and over 5 years’ experience freelancing in the personal finance niche, Yasmin joined the team with a mission to make international money transfers accessible and easy to understand for all. When she’s not writing, you’ll find Yasmin on her yoga mat or planning her next escape to the mountains.