A bank is a financial company that allows you to keep money for recurrent or future use. You can keep finances for your everyday use in a checking account. You can keep funds for future use in a savings account to earn interest. Usually, banks are the safest avenues where you can save your finances. You can also use credit unions and mobile money platforms for your financial activities. You will learn more about the best way to transfer money from one bank to another.
Sometimes you may need to transfer finances from one bank to another; if you hold accounts in different banks, you may need to transfer money between them. It is easy to send money from one bank to the other as long as you have the necessary details. Also, you can instantly transfer money from one account to another within the same bank or within a short time.
There are numerous advantages associated with sending money from one bank to another. You can conveniently pay for your goods and services from your bank to another bank online or at a branch. Most people prefer sending money online as you do not need to spend much time in the process. You only require a secure and reliable internet connection to execute the mission.
How do you open a bank account
Knowing how to open an account before learning how to send money from your bank account to another bank is essential. You can open your account online or at a branch. The online account opening requires you to visit your bank’s website or use an app to enter the necessary details.
Whether opening online or at a branch, you will need to provide details such as your identification document, Social Security Number, email address, phone number, and physical address. The federal government requires all financial companies to obtain such details to ensure that terrorists and criminals cannot access banking services. They may use such avenues to fund their evil activities.
Once your bank account is running, you can start using it for various transactions, including sending money.
How to send money from one bank to another
You can use various ways to transfer money from one bank to another. They include the following.
i) Write a Check
A check is a written and signed document that allows you to make payments to people and companies. If you write a check, you are the drawer, and the company or person receiving the check is the payee. Once you write a check to someone, they take it to their bank and deposit it.
After the processing, the exact amount is deducted from the drawer’s account and deposited in the payee’s account. The process can take days to complete, and the drawer should maintain enough balance to cater for the transfer, or the check will bounce.
ii) ACH transfer
Another way you can use to transfer finances from your bank account to another bank is through the ACH money transfer method. When you use the method, finances pass through the Automated Clearing House before reaching the recipient.
Within the house, the systems will check the source of money and the destination. It can take more than a day for the transfer to complete. You require the recipient’s routing and account numbers to execute the process.
Interestingly, you can send money using the method to international banks. You can send money online using your mobile device or computer.
iii) Wire transfer
Wire transfer is similar to ACH, although it does not have a clearing house. Officials in the sending and receiving banks communicate directly to execute the transfer process. The transfer method also allows you to send money internationally.
Wire transfers allow you to send large amounts of money. You need the routing and account numbers for domestic transfers, while international wires require the SWIFT code or BIC.
Domestic wire transfers can complete within 24 hours, while international wires can take two days or more. You can send large amounts of money using wires compared to ACH. Also, you can send money online.
iv) Use money transfer companies
You can send money from one bank to another using money transfer companies such as Western Union, PayPal, MoneyGram, Ria, and Remitly, among others. Usually, the platforms allow you to use your bank account to fund your transfer. For PayPal, the recipient will need to withdraw the finances to their bank account when they receive it.
However, Western Union, MoneyGram, Ria, and similar companies allow you to send money directly to the recipient’s account. You then get a tracking code to track your transaction. The process may take a few days to complete. You should part with a transfer fee.
Which is the best way to transfer money from one bank to another?
You have seen how you can transfer money from one bank to another. Regarding speed, the Wire transfer method is the best; the funds reach the recipient within a short period. As I mentioned, it takes 24 hours for the funds to reach the receiving bank. Also, you can transfer large amounts of money compared to the rest.
However, regarding cost, the ACH transfer method carries the day. It does not charge you to send or receive money. Wire transfers charge fees to send and receive money. The fees vary with the amount you are sending or receiving. Checks and money transfer companies also may charge fees.
Regarding security, the ACH transfer is the most secure money transfer method. That is because funds stay on hold by the Automated Clearing House before being released to the recipient’s account. You can therefore cancel the transaction if you make mistakes. You cannot cancel the transfer for wire transfers once you tap the send button. Therefore, it is easy to lose money through the method.
A bank allows you to keep finances for recurring expenditure or future use. You can use a bank account to send and receive money within your bank or from another bank. Again, you can send money online or at a branch. When sending money to others, you can use ACH, wire transfer, check, or money transfer companies such as Western Union, MoneyGram, and Ria.