Transferring money between banks can be quick and easy once you know how to do it. You can use digital methods that are almost instantaneous or you can go old school and whip out the paper checks. You could even physically withdraw and deposit cash.
What is a bank-to-bank transfer?
A bank transfer is a transaction that moves money from one bank account to another. Moving money between accounts at the same bank is an internal transfer, like moving money from your checking to your savings.
A bank-to-bank transfer involves accounts at, well, different banks.
How to transfer money from one bank to another
The exact process will vary based on the transfer method you choose, but here are the basics.
1. Pick a transfer method
Digital methods include electronic funds transfers (EFTs), wire transfers and peer-to-peer transfers. These methods are considered safer and quicker than traditional methods, but physically moving money around is still an option. (And, yes, you can write a check to yourself.)
2. Access your account
If you’re using checks, you can simply take out your checkbook and grab a pen.
If you’re using a digital method, you log onto your account via the bank’s mobile app or webpage and look for the “transfer” feature. From there, you’ll be asked how much you want to send and where you’re sending it to.
3. Know the destination and the amount
In digital money transfers, you’ll need to input the routing number and the account number of the destination. Both numbers are typically long, with routing numbers being nine digits and account numbers ranging from 10 to 17 digits.
Financial institutions publish their routing numbers freely but account numbers are generally private. You’ll have to look up your own account number at the other bank or ask the recipient for it.
If your recipient doesn’t have a bank account, you could send a wire transfer or check to a physical address instead. You’ll need to know their legal name and address.
4. Follow through
Double check all the details. The final step may be hitting the “enter” button or driving across town to deposit the check at the other bank. Some digital transfers allow you to set a specific date for the funds to be sent so you can time things out if you wish.
Different Ways to Transfer Money
There are two main methods of transferring funds: digital and physical.
Electronic funds transfer
An electronic funds transfer (EFT) can facilitate a transfer of funds between two bank accounts. EFTs must be initiated through a computer, smartphone or electronic terminal, such as an ATM.
An external transfer might take up to three business days because banks often use intermediaries to manage the transaction. You may be able to expedite the transfer, depending on your bank and your account status.
Wire transfer
Most wire transfers can be sent and received on the same day. If you’re sending a significant amount of money and you’re on a deadline, a wire transfer is a great option.
Perhaps their biggest downside is that it often comes with a fee. Before choosing a wire transfer provider, scope out the fee structure.
Peer-to-peer transfers
Peer-to-peer payment platforms make it easy to send money to friends, family and even the person you just met on the street. It’s instantaneous and you can make your transaction history public or keep it private.
Popular platforms include Venmo, PayPal and Zelle. Each has a slightly different process. But you’ll only need the recipient’s email address or phone number to send them funds.
Paper checks
Paper checks can still get the job done if you want to transfer money. Instead of setting up the details online, you’ll simply write a check with the appropriate information.
If using paper checks to transfer funds between your own accounts, you can finish the process quickly with the help of a mobile check deposit feature. Or you can make your way down to the bank branch to complete the transaction.
Cash
This is the least secure way to transfer money. You could simply withdraw cash from your account either in person at a brick-and-mortar branch or via an ATM, then deposit it in your other account or hand it to the recipient.
What to consider when transferring your money to a different bank
Transferring money to a different bank comes with some pitfalls, which can be mitigated if not avoided.
The first thing to consider is the cost of transferring funds. “The transfer fees between banks can vary,” said Mark Stewart, CPA at Step by Step Business. “A quick research can reveal to you how much you will be charged to transfer from ‘Bank A’ to ‘Bank B’ so that you can be fully aware of account activities.”
How quickly you need the funds to be in the other account is another thing to keep in mind. Sometimes, the normal speed of “up to three business days” for an external bank transfer EFT may not be fast enough for your needs. Explore all of your options to strike the right balance in speed.
The third thing to consider is a doublecheck. Take an extra minute when filling out any forms to double check the numbers. Otherwise, the funds might end up in the wrong account.
“You must ensure that you are transferring money to the right account because if the transfer goes to the wrong account, you may not get a swift refund response from the receiving bank, especially if you are not their customer,” said Stewart.
A quick review can help you avoid a potential hassle or even save you from losing the funds altogether.
Frequently asked questions (FAQs)
Yes, it’s typically free to transfer money when you use an electronic method or a free check that came with your bank account. If opting for a wire transfer, however, you’ll likely encounter fees.
The best way to transfer money between banks varies based on your goals. If you are looking for a quick transaction, a wire transfer might be the right move. But if you want to avoid fees, setting up an EFT might be the right choice.
Yes. You can transfer money to yourself at an account you hold in a different bank.
If you want to make an external bank transfer, you’ll need the account number and the routing number associated with the other bank.
