Having bank accounts at multiple banks lets you tap into more features. One bank may have better loan products, while you can get a higher interest rate on your savings account at another bank. This arrangement can work well, but you may need to transfer money between banks to cover bills, save for a vacation, or make an investment. Confusion about money transfers between banks can also deter people from creating accounts at multiple banks, even if it would be beneficial for them to do so. We will highlight how transferring money between banks works so you can bank with confidence.
Can You Transfer Money From One Bank to Another?
You can transfer money from one bank to another. This is a common practice that avoids numerous headaches. This model lets your employer send you direct deposits even if you use different banks. You can also transfer money between your accounts if you do business with multiple banks.
What to Know About Bank Transfers
Although it is possible to transfer money between banks, this process has some differences compared to transferring money between accounts in the same bank. We will share some important factors to consider before transferring money from one bank to another.
Money transfers take longer to process between two banks. The transfer can take 1 to 5 days to go through, depending on how you transfer money between banks. This delay can create stress if you have urgent costs you need to cover. You should consider how soon you need the funds and initiate money transfers in advance to create a buffer. You don’t want to sweat it out, hoping your funds arrive in one business day instead of two days.
Banks have lowered their fees and even eliminated popular ones because of competition. However, you may still get stuck with a money transfer fee depending on the banks you use. You should look for banks that do not charge fees for money transfers. While a single fee won’t do much harm, these fees can add up if you frequently transfer funds between banks.
Transfer limits from one of your banks can limit your ability to send funds across accounts. Some banks limit you to six transfers per month if you are using a savings account. Exceeding this limit can trigger fees for each offense. You can find banks without transfer limits on savings accounts since the Fed updated Regulation D to remove this restriction. However, some banks still have transfer limits, and consumers in this predicament will have to be more careful about how often and how much they transfer each month.
It’s easy to double-check your banking information for both accounts before transferring money. Most of these transactions are not reversible, and a quick confirmation can help you avoid a costly mistake. You should make sure funds get transferred to the appropriate accounts.
Information You’ll Need For a Bank Transfer
Banks will request some details before letting you transfer funds to another account. You should provide the following when initiating a transfer:
- The name of the recipient’s bank account
- The recipient’s account number
- The recipient’s routing number
- The name of the recipient’s bank
Ways to Transfer Money From One Bank to Another
Looking to transfer money from one bank to another? You have several choices, and some of them are faster and cheaper than others.
Contact Your Bank
You can call your bank or visit a local branch to ask for guidance. You can initiate a transfer with their help, but you shouldn’t use this method forever. You may incur fees if someone else facilitates the transaction, and even if you don’t pay anything, this process takes longer than the other choices.
Mobile Banking App
Most banks have mobile banking apps since more people do their banking online. Some of these apps support money transfers between banks. You can send over funds within a minute once you get familiar with your mobile banking app.
Peer-to-Peer Payment Apps
Peer-to-peer payment apps like Zelle and Venmo have been gaining traction because of their seamless money transfers. You don’t need to know someone’s bank account number or routing number to transfer funds. Once you get familiar with these apps, you can complete money transfers in a few clicks.
Wire transfers are an old-school way to send money across bank accounts. The sender compiles and submits the recipient’s information for the wire transfer. You can receive funds from a domestic wire transfer on the same day and receive overseas funds from a wire transfer within a few days. However, other payment methods provide similar advantages. Wire transfers fall short in most cases because of their high fees and nonreversible nature. Scammers often use wire transfers to steal unsuspecting victims’ money because wire transfers let them remain anonymous.
Although the world is moving to a digital experience, good old-fashioned checks are still a common payment method. You can write a check and send it to the intended recipient. The recipient can endorse the check and deposit it at the bank. You can also write a check from one of your bank accounts and endorse it with the other bank account. You can either visit a local bank to deposit the check or take a picture of both sides of the check with your mobile app if your bank has that feature.
When you use Revolut, you gain access to a mobile app that allows you to manage all your money in one place. This is a simple platform that makes it easy to:
- Transfer money between accounts without the need of the recipient’s bank account info
- Save money
- Invest in stocks and other assets
- Travel without worry
- Convert currency
- Pay and get paid anywhere around the world
- Get a prepaid debit card anywhere
Using Revolut makes it far simpler to manage your money because you don’t need to sign up for several different services. Now, you can do everything you need all in one place.
Transferring Money with Confidence
Money transfers between banks give you more flexibility. You can get perks from multiple financial institutions instead of settling for a banking experience that doesn’t provide everything you need. While money transfers can create some friction, most of them get processed within 1 to 5 business days, depending on how you transfer funds between banks.
Frequently Asked Questions
What is the best way to transfer money from one bank to another?
Peer-to-peer payment apps are becoming a more attractive choice because of their simplicity and quick transfer times.
What is the fastest way to transfer money between banks?
Peer-to-peer payment apps like Zelle and Venmo are the fastest way to send money between banks.
How much does it cost to transfer money from one bank to another?
Your costs depend on the transfer method, but it’s possible to send money between banks without paying any fees.