A bank is a financial institution that allows you to deposit and use money. There are online bank accounts whose activities are online and physical banks with brick-and-mortar offices. Online banks are very convenient since you can easily access your account on the go. You can carry out transactions like bill payments, sending money, checking your balance, etc. But how long does it take to transfer money from one bank to another?
I will be discussing the time taken to send money from your bank to another bank later. I will also discuss how you can send money from your account to another shortly. Sending money is one of the most critical aspects of the modern world as it allows you to trade with people across the globe.
Today you can send money while sitting in your house to someone far away using your online bank account. Even the brick-and-mortar banks nowadays allow online usage. Various advantages are associated with online money transfers, such as convenience, faster delivery, and time-saving.
When transferring money online, you must ensure a secure and consistent internet connection. You can prevent losing money to fraudsters as your details remain encrypted. An insecure internet connection can leak your details such as usernames, passwords, and PINs to fraudsters.
How to open a bank account?
Opening a bank account is easy as you need to gather all the required documents, and you are good to go. As mentioned above, one can open an account online using a smartphone, computer, or tablet. You only need to visit the bank’s website if you want to open an account and navigate to the account opening page. You then get a form that you can fill in your details and then upload the necessary documents.
When opening your account at a branch, most things will be manual. You will fill out forms and attach the necessary photocopies of your documents. Your bank may also get your biometric details and passport-sized photos for better identification. After applying, you will get a notification later about the status of your account.
Usually, banks run your details in the ChexSystems to see if you are eligible to hold a bank account. The ChexSystem is a body that keeps records of those who misuse bank accounts by writing bouncing checks, closing accounts with negative balances, and making fraudulent transactions with your account. However, some financial companies offer free checking accounts with no credit checks and no deposits whatsoever.
Once you open a bank account, you usually get an account number. An account number distinguishes you from other account holders. It allows you to deposit or receive money in your account.
What are the requirements to open a bank account?
It is essential to understand what you require to open a bank account. The various things you need include the following.
- Phone number
- Email address
- Social Security Number
- An identification documents
- Physical address
The phone number and email are essential for communication issues. When using online bank services, you may need to receive OTPs to verify that you are the one logging into your account. The email address allows you to receive e-statements, links to change passwords, and other vital details. The physical address can also help you receive paper statements, debit cards, credit cards, and checkbooks.
Identification documents are very crucial to prevent criminals from opening bank accounts. You can bring your national identification card, passport, or driving license. A military ID can also do. The Social Security Number helps the government track the amount of money you make in your lifetime to calculate your Social Security benefits accurately. It can also act as an identification document in some cases.
What are the various types of bank accounts?
There are various types of bank accounts that you can open today. Every bank account has its specific purpose, as we are about to see. The various types of bank accounts include the following.
i) Savings accounts
A savings account allows you to save funds for your plans and earn interest. Savings accounts earn interest quarterly or annually, depending on the laid down plans. The accounts have a restricted number of monthly withdrawals to ensure that you do not dilute your savings. You can deposit money yourself into your account or set up a direct deposit from your employer or government agency.
ii) Checking accounts
A checking account allows one to deposit money for their day-to-day usage. It is different from a savings account in that it has no restrictions on the number of withdrawals you can make per month. Once you open a checking account, you can request a debit card to access money from your account.
Some banks allow you to request a debit card alongside your account application. You can use your debit card to withdraw money at an ATM and buy goods and services online and at physical stores.
Also, you can send money with a checking account number instantly to bank accounts within your branch. You can have a personal or business checking account. A personal checking account sorts out financial needs such as food, traveling, bill payments, etc.
In contrast, a business checking account allows you to sort out business-related issues such as purchasing stock, making repairs within the business premises, paying workers, paying taxes, etc. It helps you to isolate your personal and business expenditure for effective accountability.
iii) Certificates of Deposits (CDs)
A Certificate of Deposit is almost similar to a savings account. However, the account allows you to save a fixed amount of money for a particular period to earn a fixed interest. Depending on how you agree with your bank, that can be six years, one year, two years, etc. After the period, you can then withdraw your money.
How long does it take to transfer money from one bank to another?
You can transfer money from one bank to the other. However, unlike account-to-account transfers within a branch that can be completed within a day, bank-to-bank transfers can take several days depending on the transfer method used. When you use wire transfers, the transaction will complete within 24 days for domestic transfers. Some wire transfers can be completed within a few hours.
However, international wire transfers can take 2-3 business days to complete under normal circumstances. Sometimes transfers can even take a week to complete. ACH transfers take the longest time to complete. A typical ACH transfer can take three to four business days to complete.
The time is long because the funds have to pass through a third-party platform, the Automated Clearing House, before reaching the target bank account. Within the Automated Clearing House, the concerned people must check the legitimacy of the funds, confirm that there are enough finances in your account, then request the receiving bank to accept the transfer.
ACH transfers are usually free unless you use an accelerating service. For wire transfers, the sender and the receiver must part with some fees. Remember that you can send domestic and international wires. ACH transfers also allow you to make international transfers.
Despite ACH and wire transfers taking that long to finish, you can use third parties to transfer money from one bank to another immediately. An excellent example of such platforms is Zelle.
Zelle allows you to transfer funds between banks instantly, thus lessening the waiting time. Interestingly, Zelle transfers are free. However, the sending and receiving banks must support Zelle for transfers to go through.
How to send money with a bank account?
Sending money with a bank account is straightforward. You can make the transfers at your bank’s branch or online. When transfering money at your branch, you need to carry your identification document and the recipient’s account number. If you are sending finances to another bank, you should also have the routing number with you.
At the bank, you will need to fill the money transfer slip with the correct details plus the amount to transfer, then hand them to the teller, who then completes the other process after confirming that you are the account owner.
You can also send money online from the comfort of your couch by logging in to your account on the bank’s website or their mobile app, then navigating to the send money tab, entering the recipient account and routing numbers where necessary, then tapping the send money button.
Are banks safe to keep my money?
You might have opened an account or plan to open an account with your bank and wonder whether your money will be safe. Banks are safe to hold money since they have adequate security to keep your funds secure.
Also, all banks within the US are FDIC insured so that your money does not disappear if the institution collapses. Each account has insurance of up to $250,000.
A bank is a financial institution that allows you to deposit and use money. You can open a bank account to use the services of a particular bank. We have banks that operate online and others that run physical branches.
However, even mortar-and-brick banks have embraced online services. There are various kinds of bank accounts, including savings, checking, and Certificates of deposit. You can send money using a bank account.