Checking Account

The Advanced Guide to How to Transfer Money From Savings to Checking

If you have money in your savings account, you may need to transfer it to your checking account when the time to use it comes. You need to understand how to transfer money from savings to a checking account. However, it is a straightforward activity and thus easy to undertake. Furthermore, the transfer of funds from your savings account to the checking account of the same bank is faster.

However, when transferring money from your savings account to a checking account of a different bank, it usually takes longer. You may wait for several days for the funds to reflect in the checking account of the other bank. The funds have to take that long to give time to the receiving bank to verify their origin. Also, the bank has to confirm whether the funds are available in the sender’s account.

Transferring money from one account to another may attract some fees depending on the financial institution. In most cases, moving money from one bank account to another bank account of a different bank attracts fees. However, the fees are just a small percentage that cannot significantly impact your overall balance. If you are transferring all your money from your savings account to a checking account, you must consider the fees that apply.

What is a savings account?

A saving account refers to a type of account that allows you to save money for future use. If you plan to do a project in the future, the best thing is to save the money until you attain the right amount for your intended purpose.

Additionally, a savings account restricts you from accessing money from your account. The account owners can only access funds from their bank accounts a few times per given time. Exceeding the allowed number of withdrawals attracts some fees.

Moreover, a savings account usually has no debit card. Not offering a debit card further limits the savings account holders from withdrawing money from their accounts. That means that the money you put in your savings account should be for long-term plans only.

Another feature of a savings account is that it restricts the writing of checks. All these measures are to ensure that the money remains in your account as long as possible. Interestingly, savings accounts earn interest rates. You can get something on top of the initial deposit amount after some time.

What is a checking account?

A checking account refers to an account in a bank or credit union that allows you to access your money throughout. One can transfer money to someone else’s bank account, withdraw over the counter, pay bills, and so on. Checking accounts do not put restrictions on when you should get your money.

However, you might have daily and weekly withdrawal limits. Moreover, the accounts come with a debit card that allows you to access your funds conveniently. With the ATM card, you can withdraw money from ATMs, pay online, and send money to others online.

A checking account may allow you to earn interest when you do not withdraw for a certain period. In that manner, the account can help you to draw your saving schedule. Checking accounts with an option to save and earn interest has competitive APYs to encourage account holders to save more.

Checking accounts also allow you to write unlimited checks. It thus becomes easy to make payments for goods supplied to your business or services rendered. Also, your bank may offer you overdrafts when you have a lower balance than the amount required for a transaction.

how to transfer money from savings to checking

How to transfer funds from a savings account to a checking account

If you want to move money to your checking account of the same bank, you will only need the account number of the receiving bank account. Remember that it is possible to have both a checking and a savings account in one bank.

However, most financial institutions interlink the accounts so that you can log into both accounts on one platform. In such a scenario, you will only need to initiate the transfer of funds from the savings to your checking account without providing your checking account number.

If your checking and savings accounts are not interlinked, you will have to use the account number of the checking account. You may also need to enter your full names as they appear in your checking account. The funds then reflect in your checking account within a few minutes.

When transferring funds from your savings account to a checking account of a different bank, you need the account and the routing number of the receiving account. The routing number will help identify the receiving bank while the account number distinguishes the recipient from other account holders.

Transferring funds between one bank to the other may take some days as the receiving bank tries to check whether the sender has enough money to warrant the transfer. Also, the receiving bank needs to see whether the source of the funds is legitimate.

Can I transfer money to another account online?

Banks and other financial institutions have gone digital, and now you can access your account online. You can either use your bank’s app or log in to your account via the web. The first step to managing your account online is to open an online account, by choosing a password and a user name. Secondly, you will need to verify some details before accessing your money.

You can send money to someone else from your bank or other financial institutions with a working online account. Online transfers are efficient and convenient since you do not need to line up in the bank to initiate the transfer. Furthermore, transfers to accounts of the same bank are instant.

If your account has a debit card that links to your account, you can use it online to transfer money from your account to other accounts such as merchants’ accounts when buying goods and services online. You should use a secure internet connection when doing online transactions to avoid hacking.

What are account and routing numbers?

The two types of information are usually confusing to people who are new to banking. A bank account is a special arrangement between you and a financial institution that allows you to have money in the bank. Each bank account has a unique number called the bank account number. It distinguishes you from other account holders. I can withdraw money with my account number plus other requirements such as the Identification card and my signature or Touch ID over the counter.

On the other hand, a routing number, also called transit or ABA number, is a nine-digit code that helps to distinguish a financial institution from the others. It assists in the transfer of money by directing your bank where to deliver your money. In lame language, a routing number acts as an address to a particular bank.

How do I find my routing and account number?

There are various ways you can know your routing and account number. First, you can use your checkbook, which usually has multiple numbers printed at the bottom. The first set from your left is the routing number consisting of nine digits. The middle set is your account number, while the last set composed of four digits is your check number.

Alternatively, you can see your routing and account numbers when logged in to your account online. Some financial institutions will display the numbers on top of your account, while others will need you to click on your account details to see the numbers.

Another way to know your routing and account numbers is by calling your bank’s customer care and asking about it. You may have to give some identification details and why you want the numbers before you get them.

Additionally, you can get your account number from your monthly statements. These may either be e-statements or paper ones.

Can someone use my account number to withdraw money from my account?

You can send money with a checking account number instantly, but you cannot use the number to withdraw money from someone else’s account. Your account number alone is not enough for someone to withdraw money from your bank account. Moreover, no one can use the routing number alone to steal from you.

However, if someone has your routing and account number, they can impersonate you and fraudulently order checks from your bank that they can use to pay for goods and services. Therefore, you should never give the details to people you do not trust.

Additionally, someone can steal from your account using your payment card information. You can use the card number, the CVV, and the expiry date to check out online. You do not need a PIN at all. Therefore, there is a possibility that someone can just get money out of your account using your card. That is why you should report to your card issuer immediately upon losing your credit or debit card for them to deactivate the card.

Bottom line

A savings account allows you to keep money aside for future use. It has restrictions on the number of times you can withdraw in a given period. A checking account allows you to access your money anytime you need it and usually comes with a debit card. It is possible to transfer money between your accounts either of the same bank or in different banks.

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