How To Transfer Money From One Bank to Another (2024) (2024)

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There are multiple ways to transfer money from one bank to another. The five methods of transferring money to another bank are:

• Wire Transfers
• ACH Transfers
• Peer-To-Peer Payment Apps
• Personal Checks
• Cashier’s Checks

We’ll break down what you need to know about five methods in terms of cost, speed, convenience and security.

Wire transfers allow you to send money to domestic or international accounts. A bank is the intermediary between the sender and the recipient, and it’s responsible for confirming that the sender has the funds. The sender gives the bank the information needed to complete the transfer, including these details:

• The recipient’s name
• Their account number
• The name and routing number of their bank
• The amount you’re sending

For an international transfer, a third-party bank might facilitate the transaction. International wire transfers are also generally done using the Society for Worldwide Interbank Financial Telecommunication network. SWIFT acts as a secure messaging system between banks.

While wire transfers let you send larger amounts of money than some other payment methods, some financial institutions limit the amount you can wire in a single transaction.

How Long Does a Wire Transfer Take?

Wire transfers have the advantage of speed — they can typically be processed on the same day or the next. This speed often comes at a price, however, as there are no federal laws regulating the fees a bank can charge for this service.

The cost to send a wire can range from $0 to $50 depending on the bank, whether the wire is domestic or international and whether you’re sending money in U.S. dollars or a foreign currency. Some banks also charge you for receiving wire transfers, commonly charging more for incoming international wires.

You can also send wire transfers through money-transfer providers, which often have lower fees than traditional banks and online banks. Western Union, MoneyGram and Wise are examples of money transfer providers.

Is A Wire Transfer Safe?

The speed of a wire transfer can be a benefit or drawback. It’s one of the fastest ways to move money, and you usually can’t cancel a wire transfer once the recipient’s bank accepts the money. This makes it a preferred payment method for fraudsters. Only wire money to someone you know, and make sure you have proof that they are who they say they are.

An ACH transfer moves money from one bank to another through the automated clearing house network. It’s one of the most common types of money transfers used by banks and credit unions. ACH transfers are used for transactions including payroll direct deposit, government tax refunds and automatic online bill payment services.

You don’t typically pay fees to make ACH transfers, so there’s usually no charge to set up a recurring transfer or receive your paycheck via direct deposit.

How Long Does An ACH Transfer Take?

ACH payments can clear in as little as a day. But some transactions, such as debits, can take up to three business days depending on factors such as the time of day you initiated the transfer. Same-day ACH transfers are also possible, but you’ll usually need to pay an additional fee for them. However, an ACH transaction won’t go through if the sender doesn’t have enough funds or the information about the recipient doesn’t match what the sender provided.

Is An ACH Transfer Safe?

ACH transactions are federally regulated and aren’t as susceptible to hacking as some other types of payment systems can be. The main risk of fraud with ACH payments is having a scammer trick you into sending money.

Notify your bank immediately if you were a victim of fraud and were duped into sending money or providing information that allowed money to be sent from your account to an unauthorized party. Under the Electronic Fund Transfer Act, a financial institution must investigate the situation promptly, report its findings to you within three business days after finishing the investigation and, if applicable, refund the money to you within one business day of its decision.

ACH Transfer Reversal

You can only have an incorrect ACH transfer reversed under the following conditions:

• It was a duplicate transaction.
• The payment was made for an incorrect amount.
• The payment was made to the wrong account.
• A debit was processed earlier than planned.
• A credit was processed later than planned.

Peer-to-peer or P2P payment apps, such as PayPal, Venmo, Zelle, Cash App and Google Pay, are popular ways for people to send money to each other or pay small businesses. To make a payment through one of these money-transfer apps, you’ll have to set up a free account that links to an eligible bank account or credit card.

Cost and Speed

It’s generally free to send and receive money through digital-payment apps that are connected to bank accounts, but payments made with credit cards may incur fees.

Depending on which app you use, it can take up to three business days for the recipient to get the funds in their account. You can make same-day payments with some P2P apps for an additional fee that may vary based on a percentage of the payment.

Transfer Limits

These payment services may limit how much you can transfer in one transaction or within a certain time frame. This is to help minimize the risk of a thief draining your account. For example:

• Venmo limits you to spending $299.99 per week in a personal account until you complete its identity-verification process.
• Bank of America limits people with personal accounts to sending up to $3,500 through Zelle in a single transaction.

Security

Since your payments can be transferred almost instantly, in most cases, there’s no way to cancel a P2P payment once it’s been made. The same security issues also apply when it comes to the potential for being scammed, so it’s important to only transfer funds to a verified person or business.

A personal check is a traditional way of transferring money from your bank account to someone else’s. There’s no fee to write or deposit a check. However, most banks or retailers will charge you for the blank checks themselves, which can cost 3 cents to 25 cents each depending on the features and style you want. There are also costs for envelopes and stamps to mail checks.

How Long Does It Take a Personal Check to Clear?

A potential downside to paying with a check is that it can be slower than other types of transfers. In addition to the time it takes to receive a check in the mail, it can take up to two business days for a check to clear, depending on the policies of the recipient’s financial institution and the day and time they deposit the check.

Many mobile banking apps allow you to deposit a paper check by taking pictures of the front and back of it, saving you time compared to going to a bank or ATM in person to make the deposit.

Are Personal Checks Safe?

There’s some risk of a personal check being lost, either in the mail or by the recipient. But checks have one advantage over faster types of money transfers: You can cancel them if they haven’t cleared. To stop a check, contact your bank immediately. Some banks will charge you a one-time stop-payment fee, which could range from $20 to $40.

With a cashier’s check, the bank or credit union guarantees the funds, making it as good as cash. This is different from a personal check, which is backed by the account holder’s funds and could bounce. Since cashier’s checks are backed by a financial institution, they’re considered a safe way to transfer large sums of money. Some banks offer this service to account holders for free, while others charge up to $20.

How Long Does a Cashier’s Check Take to Clear?

Cashier’s checks deposited in person at a bank typically have the funds made available by the next business day. A longer hold can be placed on all or a portion of the check if the recipient deposits more than $5,525 worth of checks in one day or the bank has reason to suspect the check may not be valid.

Can Cashier’s Checks Be Reversed?

A risk with a cashier’s check is that since the funds have already been drawn from your account and given to the bank that issued the check, you won’t be able to get your money back if your check is lost or destroyed unless you’ve purchased an indemnity bond from an insurance company.

Unfortunately, an indemnity bond can be expensive and difficult to find, and it may require a credit check. The cost may be a percentage of the check amount or a minimum flat fee.

Are Cashier’s Checks Safe?

There’s a risk of receiving a fraudulent cashier’s check, as criminals have increasingly sophisticated printing techniques that can mirror a valid cashier’s check. For example, if you’re selling an item, a buyer may want to pay you with a cashier’s check. You hand the item over, and only later do you learn from your bank that the check isn’t valid. In that case, you’re out the money as well as the item, and the buyer has vanished.

If you receive a cashier’s check, it’s important that you know it’s from a trusted source. Never hand an item over or send money to someone you don’t know in exchange for a cashier’s check.

What Are Bank-to-Bank Transfers?

Tips for Smooth Money Transfers

Here are some best practices for making secure and efficient money transfers:

• Only use a reputable bank or money-transfer service to move funds between banks.
• Make sure your money is coming from or going to a reputable source.
• Double-check that all of the required information for the electronic transfer is correct to avoid delaying the transaction or preventing it from being completed.
• Use your bank’s mobile app or a no-fee P2P mobile app to avoid paying for a cashier’s check or a wire transfer.
• If you can wait to receive your funds, don’t pay for a same-day transfer.

The best way to transfer money from one bank to another depends on the amount you’re looking to transfer, how much the transfer costs and how fast the money needs to be received.

Wire transfers and P2P payments tend to be the fastest methods, but you have little recourse for getting your money back once the funds are sent. Cashier’s checks are a preferred method for transferring large sums of money but can get lost or damaged. Personal checks can be a slower way to transfer money from bank to bank, but they offer the ability to stop payment before the funds are deposited.

*Data accurate at time of publication

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.