A bank account is a special arrangement with a bank whereby you can deposit money for savings or regular spending. Credit unions also offer accounts for their members where one can deposit their money as per the agreement. Since you can own more than one account in different banks, it is good to understand how to transfer money from one bank to another immediately if you want money in the other account.
When you create a bank account, you get a unique number called an account number. It is this account number that you can keep your money against. If someone from your bank wants to send you money, they only need your account number and maybe your name to send you money which is usually instant. The transaction cost of moving money from one account to another within the same bank is usually free or at a small fee.
When transferring money from one bank to another, you need both the routing and account numbers of the recipient. The routing number helps banks to identify the receiving bank account, while the account number identifies the exact recipient. Usually, bank-to-bank transfers take several days to complete. However, I want to show you how to transfer money from one bank to the other immediately.
How do I create a bank account?
You can create a free checking account with no credit check or deposit online or at a physical branch, depending on your bank’s account opening criteria. First of all, you must be at least 18 years old. Before opening an account, you need to decide on the type of account you want to create.
You also need to check on various features that a particular account has. Once you are satisfied with a particular bank and its specific account, you can gather all the requirements before getting started.
The federal government requires that all banks should demand the following from those opening their accounts.
- The Social Security Number (SSN)
- An identification document ( A driver’s license, a passport, or an ID card)
- Phone number
- Physical address
- Email address
The Social Security Number (SSN) is essential when it comes to tracking your tax payments. Every American citizen must pay taxes, and thus the SSN becomes crucial in that matter. An identification document will show your real identity and prevent criminals from opening bank accounts. If not well monitored, terrorists and drug peddlers among other lawbreakers can use banks as avenues of money transfer.
When opening a bank account online, you need to visit the concerned bank’s website and then navigate the account opening page. Most financial institutions begin by asking your full names and email address before you proceed. They then send you a link to your email address where you can proceed with your account opening. You, therefore, have to ensure that your email address is active and you can open it conveniently.
The next thing is filling in all the information as per the directives. You also need to upload all the required documents for verification. Once your bank account is ready, you will receive an email indicating that your account is all set for use. You can then load it with cash and send money with a checking account number instantly to other account holders in your bank, pay bills online, or transfer money to another bank, among others.
When opening a bank account at a physical branch, you will need to carry the necessary documents plus their photocopies. You will have to fill out forms and appropriately sign if you agree with the terms and conditions.
What are the factors to consider when opening a bank account?
There are various things you should put into consideration when opening a bank account. They include the following.
i) Savings or checking account
You must understand the bank account you need. To save money, then you require a savings account. However, if you want an account that you can use for your daily transaction needs, you need a checking account.
ii) Fees
Various banks have various fees on different kinds of accounts. You must be keen to check fees such as monthly fees, annual fees, transaction costs, check deposit fees, and withdrawal fees, among others. It is good to get an account with fewer fees.
iii) Minimum opening deposit
Most banks require you to make a minimum deposit when opening an account. However, some banks require zero opening balance. A good example is Chime, an online bank that offers competitive benefits to account holders.
iv) Mobile banking
It is wise to open a bank account that allows you to operate it from anywhere. Online banks allow you to manage your account on the go using a smartphone.
How to transfer money from one bank to another immediately
As I mentioned earlier, the usual way to move money from one bank to another takes several days to complete. However, we have other methods you can use to move money to another bank immediately. Let us explore them so that you won’t have to wait longer when transferring money across banks.
1) PayPal
If you live in the USA and have a PayPal account and a Social Security Number, you can instantly transfer money across certain banks. PayPal instant transfers ensure that you load money from a particular bank instantly and then transfer it to another bank as quickly as possible. PayPal instant transfers complete within 30 minutes upon initiation.
The PayPal instant transfer is only available for people living in the US. Moreover, the money transfer option is even applicable for a second chance checking with no opening deposit since the second chance bank account is a complete bank account despite the limitations.
The PayPal instant transfer comes at a fee. You have to part with a 1% of the amount to be transferred and a maximum fee of $10.
2) Venmo
Venmo is among the best online money transfer platforms from PayPal. It allows instant transfers across banks at a 1% fee of the amount to be transferred and a maximum of $10. Therefore, you can utilize the services for the company to avoid the long waiting of the direct bank to bank transfers. Venmo only operates within the US borders.
3) Zelle
Zelle is a payment service company that works with various banks in the US. If both banks work with Zelle, you can immediately transfer money from one bank to the other. Zelle to Zelle transfer is instant. If the receiving Zelle account links to a particular bank account, then you will be able to move funds from your bank account via Zelle to the other account as well. You can only use Zelle within America.
4) Veem
Veem also allows you to transfer money across banks within an hour. The company has an instant money transfer option of which you have to activate once you create your account for all future transactions. Like Zelle and Venmo, Veem is only available to users in the US.
5) WorldRemit
While all the above platforms only allow instant transfers within the US, WorldRemit allows you to transfer money instantly across banks the whole world. However, instant transfers are not possible in countries with strict anti-money laundering rules. These include countries in the European Union zones, whereby transfers will take about three days to complete. About 50% of WorldRemit bank transfers take 10 minutes to complete.
To send you money into your bank account using any of the above platforms, you have to provide your account and routing numbers for them to initiate the transfers. There is no harm in sharing your bank account and routing numbers with a trustworthy individual.
You may have a question like, can someone withdraw money with my account number? Many people worry that someone can use their account details to steal from them. Well, no one can steal from you using the account number only.
However, someone can get money out of your bank account if they have both the routing and account numbers. They can order checks from your banks and use them for various kinds of transactions.
Why does it take that long to transfer money between banks?
You might be wondering why it has to take that long for your funds to reflect in the other bank when you use the regular bank to bank transfers. It is not by mistake that money has to delay for up to five days to appear in the receiving account. The reason why banks take that long to complete a bank to bank transaction is to;
- Verify whether the sender has enough balance for the overall transaction cost. The process helps to protect banks from losing money from fraudulent transactions, and especially if carried online. Also, the process helps to cushion the bank tellers from the tedious process of reversing transactions which might prove unfruitful.
- Determine whether the funds are clean or not. Criminals may use banks to move money across regions, putting the public’s lives at risk when they fund their evil acts.
Bottom line
A bank account is a special arrangement between you and a bank to deposit money for savings or regular expenditures. Your bank assigns you a unique number called a bank account. Account to account transfers of the same bank takes a short time, while ordinary bank to bank transfers can take five days to complete. However, there are ways you can instantly send money across banks.
