Suppose you have funds spread across accounts at various institutions; it’s helpful to get an easy way of making money transfers. However, one of the convenient ways of transfers from one bank to another is online. This kind of fund transfer between accounts at different banks is generally free and takes up to three working days for the transaction to complete.
Moreover, it’s advisable to confirm with your institution when to expect your funds to set in and if they are fees involved. When using Faster Payments, bank transfers should take up to 2 hours to reflect on the payee account. Most banks limit the amount, so it is advisable to check this with your bank when transferring a large amount. Usually, there are a few occasions when money transfer between banks can take longer to complete.
Mostly, banks don’t regularly allow instant transfers of funds to other bank accounts. This restriction is to lower the risk of fraud, and the receiving bank occasionally takes a few days to disburse funds to the recipient to make sure that it’s not a fraudulent bank transaction. Bank transfers are easy and fast, but the question is, how long does it take to transfer money between banks to go through?
The period required to transfer your money between banks will depend upon factors such as:
- Bank holidays
- The currencies that get involved in the transaction
- The payment mode that you use
- Whether it’s a domestic or international transfer
- The institution you choose to make your money transfer
In a nutshell, for most banks, an international bank to bank transfer can take between 2-5 business days.
What Is The Procedure On How To Transfer Money Between Banks Online?
Before you can initiate a transfer, you’ll need to build up a relationship between different banks and the two accounts you have. That is, the one sending the money and the other one receiving it. First, you need to;
i) Link the two accounts
The above get done by logging in to the first bank’s website or mobile app and choose the option for making transfers. Besides, there may be an option for internal transfers involving moving funds between two accounts in the same bank, from checking to savings. Or the external option, which consists of moving funds out of one account to a different bank.
ii) Provide external account information
If you want to Transfer Money From One Bank Account to Another, you need to have the other account bank’s routing number and your account number at hand. This information can get retrieved from a printed paper check or a bank statement.
iii) Confirm the new account
After you provide the required information, the first bank will need to verify that you have authority over the second bank’s account. So, you might be required to enter your username and password, which the first bank would then use to verify.
iv) Set up transfers
After account confirmation, you can start the transfers from the sending bank’s website. You need to select the sending and receiving accounts, enter the amount to get transferred and the due date for the transaction. Afterward, you can exactly see the date funds get expected to be accessible in the receiving account.
You’ll also need to choose if you want to make a one-time transaction or recurring transfers. After making your choices, the final step is to select the option of submitting, and you good to go.
What Are The Methods Of Money Transfer Between Banks?
You can move funds from one bank to another electronically using several tools. Besides, you can familiarize yourself with how to can i transfer money with routing and account number and understand how they compare with the below methods;
1) Bank-to-Bank Transfer
If you own both bank accounts, a primary bank-to-bank transfer is a suitable option to transact. You can initiate the transfer with the receiving or the sending bank, and the cash arrives at the recipient account after two or three working days.
The length of time depends upon the banks you use and if transferring money domestically or internationally. Many banks enable you to make cost-free transfers between linked accounts, but advisable to check with both banks to be sure.
How to link your accounts:
- Log in to the account you are sending money from, and search for an “add an account,””add external accounts,” or “link accounts options.” You might find the above options or something similar in the Transfers menu or your bank’s Customer Service.
- Avail of the other bank’s routing number and your account number at that bank. If that information is unavailable, you can get it from a check, from the account’s online banking account, or through a representative at your bank.
- After providing that information, you may need to ascertain that you own an external account. You verify by providing a username and password for that account or confirming small “test” transfers between them.
However, this method is convenient if both bank accounts bear your name. To move funds to somebody else, you may require a third-party payment provider such as a wire transfer or PayPal. You can confirm from your bank what the best solution available.
2) Apps and Online Payment Tools
If your bank doesn’t support bank-to-bank transfers or if you want to send funds to somebody else, peer-to-peer (P2P) payment tools may help you complete your transaction. To establish your accounts, you need to link your bank account to the app or service using your routing number and check the same way you link accounts from different banks.
For instance, if using PayPal, the money you send sips out of your bank account. Then PayPal transfers funds to the recipient’s PayPal account. Afterward, the recipient can spend the money through PayPal or move it to a bank account.
There are numerous third-party Apps options available such as;
- Paypal is one of the most common services and the easiest to use. However, the sender and recipient need to have active PayPal accounts. Interestingly, there is no charge to send money to friends and family if the payment is from your bank account.
- Most banks offer free or cheap P2P transfers using Popmoney, Zelle, or similar vendors. These services get included automatically in your checking account. When you log in to your account, search for “personal payments,” or a similar option.
- Venmo is another popular tool similar to and owned by PayPal. Money transfers are free unless when the money comes from a credit card. In this case, there is a 3% fee chargeable.
- Google Pay is also similar to the above options, and you can link it and use it to pay for Google services and products.
Technology has improved the efficiency and timing of money transfer compared to the traditional methods of transferring money. Using online transfer, you can quickly move funds between banks in a considerable short period.
However, the amount of time depends on some of the discussed issues listed above. You don’t have to wait forever for funds to reach your account. There are ways money can instantly get into your account, or other scenarios require you to wait for at least 1-3 business days for the transaction to complete.