Banks are financial institutions that allow you to deposit and use funds. You need to open an account with your preferred institution to use bank services. There are various types of bank accounts that you can open today. They include savings, checking, CDs, and money market accounts. Any of those accounts allow you to transfer money to others. This article will show you the fastest way to transfer money between banks.
Transferring money within and between banks is essential since it allows funds circulation between different people. Businesses can receive payments from customers faster and efficiently, while individuals can receive payments from their employers efficiently and securely. There was a time when people embraced cash payments where someone could carry a lot of funds to pay their employees. By doing so, they were risking a lot. However, today, you can transfer money from your company’s account to your employees using special software.
When transferring funds from your account to another account within your branch, you require the recipient’s account number. However, when moving funds from your bank to another account in a different bank or branch, you require the account and routing number of the receiving account. The account number identifies the person receiving the funds, while the routing number identifies a bank or branch. Big banks like the Bank of America have different routing numbers for each state.
The Fastest Way To Transfer Money Between Banks
There are various ways you can move money between banks. However, the fastest way to transfer money to someone else’s bank account is Zelle. Zelle is a money transfer platform that works with various banks and credit unions to help money transfer. The platform operates in the US and integrates with online banking sites to facilitate money transfer.
The first thing before using Zelle is to open an account with the platform. If your bank works with Zelle, then the service is within the banking app of your bank. You only need to register with your phone number or email address. After that, you can start transacting.
When transferring money, you require either the phone number or the recipient’s email address. There is no need for the account or routing numbers of the person you are sending funds to. Upon hitting the send button, the funds arrive at the receiving account within minutes.
In short, Zelle shortens the lengthy time taken when transferring money to other banks. And for your information, Zelle also operates as a standalone app, and this time around, the limit is $500 per week. However, the limit can even be higher when using Zelle with a banking app whereby every bank or credit union has its limit on Zelle.
You need to understand that sending funds via Zelle is free. However, certain banks may charge some transaction fees. The only disadvantage with Zelle is that it does not support international transfers since it only works with local banks.
Above all, Zelle advocates sending money to people you know to prevent fraud. Zelle remains the best way to transfer money between banks despite not allowing international transfers.
Other Ways To Send Money To Banks
We have other ways you can transfer funds between banks. However, these ways can take longer for the funds to arrive at the receiving bank account. The following are the other ways you can use to transfer money.
i) ACH transfer
ACH means Automated Clearing House. It is an electronic bank-to-bank money transfer method processed through the Automated Clearing House network. You can use the transfer method to make payments of bills every month. Again, when your employers or government agencies send funds to your account via direct deposits, they usually use the ACH transfer.
Generally, an ACH transfer allows you to move money between banks. You pay no transfer fees, and if a bank has to charge one, it is usually a minimal amount. ACH transfers take 2-3 days to complete, while we have institutions that deliver within the same day. When using ACH, you have to transfer money using the routing number and account number of the receiving account.
ii) Wire transfer
Wire transfer is also an electronic funds transfer that allows you to move money to other banks. However, unlike in ACH, where a third party handles funds, i.e., the Automated Clearing House, wire transfers are handled by the financial institutions. The officials in the sending bank communicate with the officials in the receiving bank to facilitate the transfer.
Wire transfers take around 24 hours to complete. However, international transfers can take a bit longer to complete. Note that both ACH and wire transfers allow you to move funds internationally.
Wire transfers allow you to move large amounts of money within a short time. You have to part with some fees. Most financial companies charge fees for incoming and outgoing wires. You need to understand that most wire transfers are irreversible, and you should always be keen when transferring the funds.
iii) Use third parties to move money.
We have third parties that allow you to transfer funds from your bank to other banks. You can use PayPal, Payoneer, Western Union, MoneyGram, Wise, and Remitly to transfer money to other banks or credit unions.
You only need to create an account with the third-party platform and then use your bank to fund the transaction to the other bank. These third-party platforms also allow you to transfer money from a prepaid card to a bank account of your choice.
iv) Write a check
Checks are also convenient when it comes to transferring funds to other banks. You can write a check to pay someone else. Even though using checks to transfer money to another bank can take a long, it remains a good way of moving money. Checks may have to be posted by mail, which can take even a week to reach the recipient, and then there is the processing period which is usually 2-3 days.
The duration taken for the money to reflect in the other bank may vary with the type of check written. There are two types of checks which you can use today. We have the cashier’s check, which financial companies process quickly, and the regular check can take a few days to process.
The cashier’s check requires you to pay for the check immediately. That means funds are immediately deducted, while regular checks only draw money from your account when processed.
Can You Send Money To A Person Without A Bank Account
It is not necessarily that you send funds to someone with a bank account. There are other avenues you can send money to, including the following.
1) PayPal
Paypal is one of the most popular ways of sending money both domestically and internationally. You can transfer funds to someone without a bank account by just sending money to their PayPal account from your bank.
You only need to use your bank to fund your PayPal transactions in the right amounts that you intend to send to the recipient. They can then use the funds online or create a bank account to withdraw funds.
2) Payoneer
Payoneer also allows you to send funds to others who do not have bank accounts. The platform operates like PayPal in that you have to use your bank account to fund your transactions. You can also use your balance on the platform to transfer money. The recipient gets the money in their Payoneer account, and they are good to go.
3) Cash App
Cash App allows one to send money to others as long as they have Cash App accounts. Therefore, if someone does not have a bank account, Cash App can transfer funds. You can either use your Cash App balance, bank account or linked debit cards to send money.
Final Words
A bank account allows you to deposit and use funds. There are various bank accounts that you can open in a bank. They include checking, savings, CDs, and money market accounts. You can transfer funds using ACH or wire transfer methods.
Again, you can use third-party platforms such as Western Union, MoneyGram, Wise, and Remitly, among others. Zelle, a money transfer platform, allows you to transfer funds faster to other banks.
