You can move funds from one bank to the other either online or at a physical branch. It makes it possible to transfer money from one country to the other. But how long does it take to transfer money between banks? The time taken to move money between banks varies from one institution to the other. Some transfers will take a short time, while others will take days to complete.
Even though bank to bank transfer takes a long time for funds to appear in the recipient’s account, account to account transfer within the same financial institution takes a short time. Most transfers complete instantly. It makes it easy to transfer emergency funds such as hospital payments, money to buy food, house rent, and so on to other people.
The ability to transfer money from one bank to the other has many advantages. You can easily migrate your funds to a new account in a different bank if you are fed up with the current bank services. Moreover, it makes it easier to pay bills, send other people money, and buy goods and services from others. The process thus eliminates the risk of using cash to make transactions.
What do I need to send money to another bank?
When transferring money to a recipient of another bank, you require;
- Recipient’s account number
- Routing number of the receiving bank
A routing number refers to a nine-digit code that uniquely identifies a bank. It makes it easy for your bank to deliver funds to the right place. It could be challenging to move money from one bank to another if there was no way to identify the receiving bank. Take an example of sending a letter without an address. Will the intended person get it? I suppose your answer is no, just as mine.
You can find your routing number from your bank’s website since the number is usually displayed publicly. You will only need to copy and share with others. You can also get the digits by calling your bank’s customer care, who may dictate to you or send it to you as a text message. You can also get the routing number from your checkbook. At the bottom of every check, the routing number is the first set from your left, consisting of nine digits.
The account number specifies you as an account holder with any financial institution. The money in your account automatically matches your account number so that funds cannot move to someone else’s account. When opening your account, your bank issues you an account number.
When people are sending you money, they use the account number. You can see the account number in your monthly statements, in your online account, and in your checkbook. I can withdraw money with my account number and my identification documents at a physical branch.
How do I send funds from my bank to another bank?
To transfer money from your account to another bank account, you need to check fast the transfer fees that will allow you to calculate the total amount of money you should have in your bank account to facilitate the transaction.
Next, you can visit your bank and get assistance from the tellers. You will need to submit the recipient’s account and routing numbers. You will also need to provide your identification details, such as your national ID. or Passport, whichever is applicable. You will also need to sign some documents to allow the transfer.
Another option is to use your online bank account. If your bank allows you to run your account online, you can transfer money to accounts in other banks. The recipient needs to provide you with the account and routing number to set up the direct deposit. If the recipient requires a certain amount from you every month, you can set up automatic transfers so that you do not have to do it now and then.
How long does it take to transfer money between banks
Transferring money from a particular bank to another takes between 1-4 business days. The duration varies from one bank to the other. Moreover, the time varies from one country to the other.
You might be asking yourself why it takes so long to move money from one bank to the other. The reason behind the lengthy process is that banks must verify whether the source of the funds is legitimate. With many illegal businesses in the world, such as drug dealing, terrorism, and human trafficking. Moreover, the receiving bank must confirm that the sender has enough money in their account to complete the transaction.
Once a receiving bank gets used to the sender, the transaction duration becomes shorter. The more the trust increases, the faster the transaction. Therefore, the first time you transfer money to someone else’s bank account, you must be patient enough since the other bank is not used to you.
How do I send money without a bank account?
You do not require a bank account to transfer money to a bank account. There are several platforms you can use to transfer money to a bank account even without an account. They include;
1) Money order
You can purchase a money order from various places such as post offices, grocery stores, pharmacies, gas stations, and retailers such as Walmart. You do not require a bank account to purchase a money order since you can even present cash.
You can even purchase a money order with a payment card. After purchasing your money order, you can then send it to the concerned person who will then cash out at a bank or credit union.
One does not require an account with a bank to use PayPal. You can send money to a bank account using your PayPal account with ease. Before sending money to the bank account, you must connect it to PayPal.
Furthermore, the account must be yours since PayPal does not allow you to use someone else’s bank account. To link a bank account to PayPal, follow the steps below.
- Log in to your Wallet
- Click Link a bank. (Tap Menu then Banks and Cards when using the app)
- Choose your bank from the available list or search it if not available
- Enter your banking details to link the bank account with your PayPal account. At the bottom, you can also choose to link your bank another way and proceed.
PayPal to a bank can take between 3-5 business days. However, U.S. citizens can opt for instant transfer which attracts some fees. The funds reflect in the recipient account within 30 minutes when you use the instant transfer.
3) Prepaid cards
Prepaid cards are payment cards that require you to load money to use for various kinds of transactions. Prepaid cards do not require you to have a bank account.
You can use a prepaid card to transfer money to a bank account. Since prepaid cards have routing and account numbers, you can set up a direct deposit to the concerned bank account.
4) Western Union
Western Union helps you to send money online or at a physical location to a bank account. You can carry cash to a location to send or recharge your online account with a certain amount of money before transferring. The recipient can then withdraw the money to their bank accounts.
Alternatively, the recipient can get their money at a pick-up point. Western Union transactions attract some fees. When sending $50 and below in the U.S, you will pay a transaction fee of $5. You can send up to $10,000 per transaction.
Venmo is a subsidiary of PayPal. The company is a social payment platform that allows users to split bills. You can use Venmo without a bank account. Furthermore, Venmo allows you to transfer money to a bank account. You also need to link the bank account to Venmo using the following steps.
- Tap “☰” at the top of your screen
- Tap Settings
- Hit on Payment Methods
- Tap “Add a bank or card
- Select “Bank”
- Select your most appropriate verification method
Venmo has Instant and Standard transfer methods. The instant transfer costs 1% of the total amount to send. Money reflects in the recipient’s account within 30 minutes. The standard method takes 1-3 days to complete.
6) Cash App
Cash App is a peer-to-peer payment service that allows you to send money to others online. You can transfer money to a bank account, but first, you need to link the bank account to Cash App. Cash App also has two transfer methods which include Instant and Standard transfer.
The instant transfer ensures that you receive your money within 30 minutes. It attracts a fee of 1.5% (with a minimum of $0.25). The standard transfer is free but takes 1-3 days to complete.
How much fees should I pay to transfer money to an account of the same bank?
You can send money with a checking account number instantly to an account of the same bank as yours. Most banks allow free internal transfers from one account to the other. In most cases, you can transfer money online using an app or via the web, whichever is applicable.
You can transfer funds from one bank to the other either within the USA or internationally. Bank to bank transfers take long as compared to account to account transfers within the same bank.
You do not need to have a bank account to transfer money to a bank account since you can use other platforms such as PayPal, Western Union, Venmo and Cash App among others.