Money transfer refers to moving money from one person or organization to another person or organization. Banks are some of the critical financial companies that aid money transfers whereby you may transfer money between accounts of the same institution or different banks. Others include credit unions and mobile wallets such as PayPal, Payoneer, Venmo, and Skrill. You will learn about transfer large sum of money between bank accounts shortly.
To transfer money with your bank, you may need to have an account with the institution. There are two main ways you can open a bank account. You can open an account online or at a branch. When you open a bank account, you get an account number that uniquely identifies you from other account holders in the institution. A bank account is a unique entity you create with your bank to allow you to deposit and use money.
You may open a checking or savings account. Even though a savings account limits the times you should withdraw money from your bank account, it is still helpful as you earn interest on your savings. You can send money with a checking or a savings account. Remember that you can send money online or at a branch. However, online money transfer is convenient since you can carry out the process right from your couch, car, or bed anytime.
How to open a bank account
Before we dwell on how you can move large amounts of money between banks, you must know how to open a bank account. As mentioned above, you can open an account online or at a branch. When opening online, you do not have to visit the bank you intend to open an account with; you only need your phone, tablet, or computer and reliable internet. You also need various things to open your account. These include the following.
- Phone number
- Identification document
- Social Security Number
- Physical address
- Email address
Your bank may also demand other items to facilitate the account opening process. Once you have everything with you, you can visit the bank’s website to open your account. Opening an account with a private computer is vital to ensure your data is safe. On the bank website, if you want to open an account, navigate to the account opening section, then enter the necessary details. You may have to take photos of your documents or upload PDF files during the account creation.
Once you finish applying, you can wait for the approval. Most banks can approve your application within minutes. If you are in the ChexSystems, getting an account may be challenging. Despite that, we still have financial companies that offer second-chance checking accounts to people with poor banking histories. For the online account application, you may need to take a selfie photo to upload as your profile picture.
When applying for your account at a physical branch, you must carry your documents and possibly their photocopies. You will need to fill out an application form with all your details correctly before submitting together with photocopies plus the original copies of documents for verification. You can get your original documents once the account opening is over. Your account may be ready within a few minutes, hours, or days. If opening a checking account, you may request a debit card and a checkbook to use with your account.
How to transfer large sum of money between bank accounts
There comes a moment when one wants to transfer large amounts of money from your bank to another bank. Maybe you are making a payment for your car, helicopter, a container of maize, and so on. In such a case, having an elaborate transfer system is very important.
Bank to bank transfers may be domestic or international. Domestic bank transfers can take a few days compared to international transfers. There are various ways you can transfer large amounts of money between banks. They include the following.
1) Wire transfer
Wire transfer is an electronic money transfer method that allows you to send money from one bank to another. The transfer method also allows you to transfer money from your bank account to a credit union account or from one credit union to another. It involves direct communication between the sending and receiving bank officials. However, some credit unions do not allow direct wire transfers.
When sending domestic wires, you need the account number of the recipient. You also need the routing number of the recipient. Once you have the two, you can log into your account and navigate to the wire transfer section to begin your transfer. Once you enter the details and tap the submit/send button, the funds will reach the recipient within 24 hours. There may be charges for sending and receiving wires.
For international wires, you will need details such as;
- Recipient bank name
- Address and country
- Recipient bank’s routing code
- Recipient’s account number
- SWIFT Code
- National ID or IBAN of the recipient’s bank
- The purpose of the transfer.
International wire transfers can take 2-5 business days to complete.
2) Use a check
A check is a written document that allows the payee to get money from the drawer’s account. The drawer must sign the check for it to remain valid. For your understanding, the drawer is the person writing the check, while the payee is the person who will benefit from the check. Checks allow you to make significant money transfers between banks, especially when purchasing an item.
Once you write the check, the payee deposits it in their bank account for processing. After the processing, the bank gets money out of the drawer’s account in collaboration with their bank. It deposits it in the payee’s account. That way, you will have moved money from your bank to another one without much hassle.
2) ACH transfer
ACH means Automated Clearing House. The system operates in that you send money from your bank to another bank but pass it through the Automated Clearing House for processing. After that, it moves to the receiving bank. Contrary to wire transfers, which allow direct interaction of the sending and the receiving bank officers, the receiving and sending financial company does not have a direct connection.
ACH transfer is another way to send large transfers from your bank to another. We have banks that allow you to transfer large amounts of money up to $15,000 per day through ACH. Like the wire transfer, you need the recipient’s routing and account numbers to complete the process. By the way, direct deposit is an example of an ACH transfer. The transfer is also applicable for international money transfers.
However, ACH transfers are not as fast as wire transfers. They can take 3-4 business days to complete.
How else can you transfer money between banks?
Other methods allow you to transfer money between banks. However, they have limits and do not allow large amounts of transfers per given time. They include the following.
i) Money order
A money order is a written and signed document like a check. However, you must purchase the document when sending money. That means you must pay the amount you send to the bank or post office. You can use your bank account to make the payment. After the payment processing, you can have the money order sent to the recipient. Remember that most checks require the payee to deposit them for debiting the drawer’s account.
Money order service providers usually cap the transfer at $1,000. You can see that the method may not allow you to send large amounts at once.
ii) Zelle
Zelle is a money transfer service that operates in the United States. The platform allows you to send money between banks and credit unions. When transferring money with Zelle, you only need to ensure that the recipient’s bank supports Zelle’s services. They do not need an account with the platform; they can create one to claim the funds once you send them. You can send money using Zelle in the following manner.
- Enroll with Zelle in your banking app
- Enter the email or U.S. mobile phone number of the recipient
- Choose the amount and send
The funds will reflect in their accounts immediately. If they are not enrolled, they will receive a message guiding them on how to register accounts to claim their money.
iii) Western Union
Western Union allows you to transfer money from one bank to the other. You need to visit an agent near you, provide details about the recipient and pay for the transfer with your bank account. Western Union allows you to transfer money domestically and internationally.
Other platforms you can use to transfer money from your bank to another include Wise, Remitly, MoneyGram, Xoom, and Ria Money, among others.
Bottom line
Money transfer refers to moving finances from one bank or other financial company to another. Banks are the primary mediums of money transfers. You can send money either domestically or internationally using your bank account. In most cases, you must create an account with your bank to use it for your bank transfers. We have checking and savings accounts. You can use wire, ACH, checks, money orders, and Zelle to send money between banks.
