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Domestic Money Transfers

Sending money domestically is as easy as it’s ever been, with online banking, peer-to-peer apps and money transfer providers offering instant and cheap ways to transfer money. Here’s how domestic money transfers work, who provides them, and what the best overall method is.

Mehdi Punjwani
Author 
Mehdi Punjwani
11 minutes
February 29th, 2024
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What are domestic money transfers?

Domestic wire transfers are a way to send money within the country you’re in, traditionally via a bank - although these days you have many other options. Domestic transfers are used for paying friends and family, for goods and services, and anything else that might require you to send money to someone in your country.

What is the best way to send money domestically?

  • Money transfer providers: While you might think money transfer providers specialize in international money transfers, some also offer domestic transfers too. This means you can take advantage of their low fees and fast transfers, and skip exchange rates altogether

  • Local bank transfers: Banks are a reliable and trusted way to send money to friends and family, and depending on where you are this might be the easiest and fastest option. However, domestic bank transfers are not free and instant in every country, which leads us to peer-to-peer money transfer apps

  • P2P apps and mobile wallets: You might’ve heard of different peer-to-peer money transfer apps like PayPalor Cash App. These work as mobile wallets, letting you send and receive money using just an email address or username

Send money domestically with a money transfer provider

Money transfer providers specialize in sending money abroad, but some also allow domestic transfers based on where you are and which currency you’re sending. While it’s not their primary service, you might find it a quick and easy way to complete a domestic money transfer if you’re already signed up to a service.

We’ve gone through the best ones below.

Best money transfer provider for domestic transfers

Provider

Domestic transfers available in

Transfer fees

Transfer speeds

PassTo

UK

£0.00

Next working day

TransferGo

Select countries in Europe

€8.49

In minutes

XE

Select currencies

$0.00

In minutes

Wise

USA

€4.22

Next working day

Western Union

USA

$74.99

Next working day

Global 66

USA

$4.99

Next working day

How do I send money domestically with a money transfer provider?

The process of making a domestic money transfer with your chosen money transfer service may vary by provider, but in general you’ll need to do the following:

Step 1
Log in

Open the provider’s app or website, log in or sign up, and initiate a transfer

Step 2
Add transfer details

Choose the same sending and receiving country if possible - some providers will let you choose currencies instead, so ensure you’re sending the same currency that is being received

Step 3
Add recipient details

Input the required information about the recipient, including their bank details if necessary

Step 4
Pay for your transfer

Pay for your transfer with your preferred payment method

Make a local bank transfer

The more traditional option for sending money domestically is usually through a local bank transfer, and depending on where you are, this could possibly be the best option. If you’re in the UK or the EU it’s especially convenient; however if you’re in the USA you might find that local bank transfers are a little more expensive.

Domestic bank transfers in the USA

If you want to make a domestic wire transfer to someone else in the USA, the likelihood is you’ll be charged an outgoing fee in the region of $10-50 depending on the bank. Some banks also charge an incoming fee for domestic wire transfers, which is usually a little lower and charged to the recipient of the transfer.

Here are the domestic wire transfer fees for some of the biggest banks in the USA:

Bank

Outgoing domestic wire transfer fee

Incoming domestic wire transfer fee

Transfer speed

Bank of America

$30

$15

1-2 business days

PNC

$30 if agent-assisted, $25 if self-service

$15

1-2 business days

Chase

$35 if agent-assisted, $25 if self-service

$15

1-2 business days

This can make domestic wire transfers inconvenient for smaller amounts of money, given the high fees and slow transfer speeds.

Another way to send money domestically in the US is through the Automated Clearing House, or ACH. This isn’t intended for peer-to-peer payments, for example if you wanted to send money to a friend’s bank account - it’s more for the following type of payments:

  • Direct deposits: You can use the ACH bank transfer method to pay employees

  • Business payments: You can also make business-to-business payments and send funds to suppliers

  • Tax payments: Federal, state and local tax payments are processed through the ACH

  • Bill payments: When you pay bills for utilities, insurance or mortgage payments these are also made through ACH

Domestic bank transfers in the UK

Sending money domestically in the UK, on the other hand, is free and practically instant when you use your bank. This is because most payments can be sent through the Faster Payments system - available 24/7 for personal and business transfers up to £1 million.

You can send money via Faster Payments online, by phone, or in-branch. So long as both the sending and receiving banks use the system - which they likely will - the transfer will usually be immediate. However it can sometimes take up to two hours.

Another type of domestic bank transfer in the UK is Banker’s Automated Clearing Services, or BACS, similar to the ACH system in the USA. It’s largely used for direct debits and ]transactions between banks and other financial institutions, as well as being used to pay employees. BACS payments are slow and can take up to three days to clear, but they’re free and therefore better for long-term regular payments.

The final alternative is Clearing House Automated Payment System, or CHAPS payments, also often used for businesses. It’s faster than BACS, and has no upper limit to how much you can send, but transfer fees are usually between £20 and £30 - making it more suitable for bigger businesses sending large amounts of money.

How to make a domestic bank transfer?

Making a domestic bank transfer should be relatively easy - you’ll usually need to do the following:

Step 1
Log into online banking

Open your online banking app or website and log in

Step 2
Start transfer

Initiate a money transfer by clicking on 'Send money' or something similar

Step 3
Add recipient details

Enter the bank details of your recipient, or choose from existing recipients if you’ve sent money to them before

Step 4
Set amount

Enter the amount you want to send

Step 5
Verify identity

Confirm the transfer and pass any verification checks if required, such as one-time-passcodes

Step 6
Confirm transfer

Your money should arrive in the recipient’s bank account in the given time frame

What do I need to make a domestic bank transfer?

To send money domestically with your bank, you’ll usually need the recipient’s full name as it appears on their bank account, and their bank account details. This includes their bank account number, and often a special bank code which will vary depending on the country you’re in. For example:

  • USA: In the USA you’ll need the recipient’s routing number or ABA number, a 9-digit code to identify the location of a domestic bank

  • UK: In the UK you’ll need a six-digit sort code

  • Ireland: In Ireland you’ll need a six-digit national sort code

  • Australia: To send money in Australia you’ll need a six-digit BSB or Bank State Branch number

  • India: India uses the 11-character IFSC or Indian Financial System Code

  • Germany: In Germany you’ll need a six-digit BLZ or Bankleitzahl number

Send money via P2P apps

Finally, you can also send money domestically through peer-to-peer payment apps. These often allow you to link your bank account to your mobile wallet, so you can top up and withdraw money as you please. P2P payment apps don’t require you to share bank details in order to send and receive money - in most cases, a phone number, email address or username will do.

As a result of high domestic bank transfer fees in the USA, P2P payment apps have been well-received by customers as they offer an easier, faster and cheaper way to send money to friends and family. However, companies like PayPal are popular around the world, accepting domestic transfers in many countries as well as international transfers.

Best P2P apps for domestic transfers

App

Domestic transfer fee

Domestic transfer speed

Cash out

PayPal

2.9% plus $0.30 if paying by credit card, no fee if paying from your bank account or PayPal balance

Instant

Free if you have a linked bank account and can wait usually one working day, or instant for a fee of 1.75%

Cash App

3% if paying by credit card, no fee if paying by debit card

Instant

Free if you can wait a few business days, or instant debit card deposit for a fee of 0.5% to 1.75%

Venmo

3% fee if paying by credit card, no fee if paying by debit card, bank account balance, or Venmo balance

Instant

Free if you can wait three business days, or instant withdrawal for a fee of 1.75%

Zelle

No fees

From ten minutes

Money goes directly to your connected bank account

Google Pay

No fees if sending from bank account, but 1.5% or $0.31 for debit card transfers, whichever is higher

3-5 days

Free, takes three to five days

Meta Pay

No fees

Instant

Can take a day or longer to appear on bank balance

How much does it cost to send money domestically?

The cost of sending money domestically varies depending on where you are. For example, if you’re in the USA and you use a bank to send money domestically, you might face fees of over $30 for sending, and the recipient may have to pay a slightly lower fee to receive the money. However, you may be able to avoid these fees if you’re paying someone with an account at the same bank as you.

Domestic bank transfers in the UK work differently, and are entirely free in most cases, as is the case with many countries in the EU. Domestic transfers via online banking are free for most account types with Australia’s big four banks.

Peer-to-peer providers offer a convenient, and in some cases much cheaper way to send money. PayPal, Cash App and Venmo all charge up to 1.75% for instant money transfers, but they offer free transfers if you’re willing to wait 1-3 business days.

Zelle does not charge any fees for money transfers, as it works slightly differently. Instead of letting you keep your money in an e-wallet, as with PayPal, Cash App and Venmo, money sent to Zelle goes automatically into your linked bank account.

Not all banks support Zelle transfers, but hundreds do - you can find the complete list on Zelle’s website.

Money transfer providers like Wise and Western Union are also worth considering, but keep in mind these companies usually cater to international transfers so you might not get the best deals if sending domestically.

What is the cheapest way to send money domestically?

The cheapest way to send money domestically will be by online banking in most countries, but if you’re in the USA you’re more likely to find a better deal with a peer-to-peer service.

How long does it take to send money domestically?

Sending money domestically should theoretically be much quicker than sending money abroad, though again it will depend on the method you choose as well as where you are. Domestic bank transfers in some countries are instant - in the UK this is facilitated by Faster Payments. In Australia, the Pay Anyone service processes most transfers overnight, so if you send money before the cutoff time the recipient should get it the next day.

In the US it will depend on the sending and receiving bank. Some transfers between US banks can take a couple of business days to complete, which is why many people use peer-to-peer services.

PayPal, Venmo, and Cash App all offer instant transfers for much lower fees than you’d get with banks, while Zelle links directly to your bank account to offer faster transfers. Cash App is also available in the UK, while PayPal is used practically worldwide, so you can use it to make instant domestic transfers in most countries.

What is the fastest way to send money domestically?

The fastest way to send money within your country will often be a peer-to-peer money transfer app like PayPal, although you’ll need to pay an extra fee to access your money instantly. In some countries like the UK, domestic bank transfers are instant and free, so this would be the better option - but in other countries where bank transfers are not so speedy, peer-to-peer apps will usually offer the fastest transfers.

Sending money guides

FAQs

Are domestic money transfers safe?
Can I track the status of my domestic money transfer?
Are there limits to how much I can send with a domestic money transfer?
What’s the difference between a domestic wire transfer and an ACH transfer?
Can I cancel a domestic money transfer?
Do I need a bank account to send or receive money domestically?
Do I pay tax on domestic money transfers?
What if I make mistakes when giving details for a domestic money transfer?

Contributors

Mehdi Punjwani
Mehdi is an accomplished writer and editor, specializing in personal finance with over five years of experience. His expertise is reflected in his work for prominent brands such as MoneySuperMarket, Equifax, and The AA. Additionally, Mehdi contributes as an author at USA Today, further showcasing his proficiency in the field.