Life before banks was very hard as you don’t have any option to save your money and made an instant transfer, but now everything changed.
No doubt, currently we all are living in the era of technologies, where we found technologies everywhere and in every sector and when it comes to banking, there is a miracle in changes in this sector. Now you can easily perform banking tasks quickly.
But still, most people asked the same question when they setting up their account in the bank for the first time and the question is – how to transfer money to another bank account?
So don’t worry this blog helps you in understanding the easiest process for money transfer.
It seems like a simple concept but sometime you may face a huge loss if you don’t have proper knowledge about transferring money because sending large amounts always involves jumping through some hoops.
But don’t worry, read this blog carefully and you will get to know about some of the best ways to transfer money between bank accounts.
How Banks Transfer Money
Before moving ahead, it is important to know how banks transfer money from one account to another. Majorly, most of the banks use ACH (Automated clearing house) system to send money. Let’s take an example, when your employer gives your paycheck through direct deposit, they are using the ACH system.
ACH was developed in the 1970s, as a quicker solution than wire transfers for inspections and as a cheaper solution. The machine moves money overnight in big amounts. ACH is also cheaper than wire transfers and other kinds of payment, because it is sponsored by self-governing NACHA, and is quicker than many other conventional transformative alternatives.
How to Transfer Money to another Bank Account
The most common issue among most people is how to transfer money to another bank account and that’s why we come with the best solutions for you. No doubt, it is very confusing to transfer money and sometimes various issues arise while transferring.
So, let’s understand the process in six simple ways and easily transfer money from one bank to another. Let’s consider Bank A as sender and Bank B as receiver;
- Open your Bank’s Website to link Accounts
Sign in to Bank A and press the section ‘Transfer Funds’, after that go to ‘External Transfers’ or ‘External Accounts’ and at last ‘Add an External Account’
- Proof of Account Ownership
You need to check your bank B account with bank A to add an extra account. Bank A wants evidence that you are the owner of the bank B account.
- Provide the Important Information
Bank A will ask for bank B’s account and routing number and whether this is a checking or a savings account.
- Verify the Account
Then, Bank A asks you to check your Bank B account in one way or another:
- Provide them with a username and password for Bank B, which checks the account and ready it for external transactions instantly.
- Bank A has begun two minor transactions to Banking B. Note: to see how much was deposited, you have to sign in with Bank B.
- Verify the Deposits
Login to Bank A and visit the section “External Accounts.” There should be a section that says, “Check your deposits,” in which the sum you are transferring to Bank B will be entered.
- Start Transferring Money to another Bank Account
You can now instantly transfer money without any problems from Bank A to Bank B. Depending on your needs; you can set up recurring or special transfers.
Transferring money from two accounts is normally free, but there is often a cap to how much to transfer simultaneously.
It’s a matter of policy for your bank. For example, credit unions usually offer lower rates when they equate credit unions to banks.
When moving money into or from your accounts, be mindful that deposit and account checking minimum sums are usually needed to avoid excessive fees or account closures.
Important Info Requires to Transfer Money
This can be a little complicated if you do not know what to do while trying to find out how to transfer money to someone else’s bank account. You would need the following details to move money between banks:
- Bank Name
You will know the name of the bank on which you keep the receiving account. It would be very easy to subtract, particularly if you move your accounts to another. The address of the bank can also be requested
- Saving/Checking Account
If every account is a savings or checking account, you need to find it. Again, whether they are your own accounts both, this should be easy. You will need to find out from them before you get a bank transfer if you send money to someone else.
- Personal/Business Account
You will have to ask if the receiving account is a business or a personal account. It is relevant as they transition to and from company accounts can be subject to specific regulations and fees.
- Routing Number
A 9-digit number shared with your bank is a routing code. This number is important to make sure your money is on the correct bank account. A bank may have many routing numbers, so double-checking that you are using the right one is critical.
- Account Number
You will need an account number to set up a bank for the money transfer. The digits of accounts for a single account are eight to 12 amounts. There is always a unique account number, as though both the deposits and the accounts of your checks were at the same bank.
Alternatives to Bank transfers
The next question that comes in your mind would be how to transfer money to someone else’s bank account but through an alternative to the bank to bank transfers. In this digital era, everything becomes easy, even transferring money. Let’s check the other popular bank transfer methods;
Mobile apps are the best solution for your question- how to transfer money from a bank account to another bank account online.
If you share the dinner bill, pay your portion for a next bachelor party or get some money from Mom and Dad for last-minute rent – you should be glad that you know these easy choices when you need to easily move funds between banks.
You can easily pay your bill, receive the amount, and get updates if your bank account is linked with the mobile app. Let’s discuss some of the most popular apps;
How To Transfer Money Between Banks With Mobile Apps
It is one of the most popular mobile apps for banking purpose and with the use of it you can instantly and securely transfer money from one place to another. You can easily manage your money, budget, saving, and credits through this top-notch app.
The best thing about this app is that it consists of various banks and it is free as well as secure with having more than 3 million active users.
With the alternative “Transfer to family and friends,” you can send money to someone else’s PayPal account for free. PayPal is an easy way, and it shows on the other person’s PayPal account as soon as you submit the money. You will move money from there to your bank account.
- Google Pay/ Apple Pay
You can use these payment apps to make bank transfers, electronic purchases, and more, based on your preferences for Apple or Google.
Apple Pay is linked to the Apple Wallet, which makes sending money fast and convenient by either pressing the text box on the Apple Pay button or by pressing on the Google Pay button while you’re texting.
- Cash App
The Cash App, which lets you transfer the money to the bank or debit card of another person, is another common Peer-to-Peer payment service.
Users may also make a direct deposit; causing any funds they obtain to enter their bank account automatically. When you don’t like Venmo’s stream that reveals to whom and why you’ll prefer the cash service, instead of sending your money is a more private route.
Not only with these apps, you make a bank transfer to someone else but they also require the recipient to collect the money the same day — normally, for a small fee, of course. You can also use these devices as a short-term savings account.
- Writing a Check
Although it may sound archaic, writing a check is a practical way to pass money to someone else or someone else. Most banks can offer a few checks a year, free of charge or at a minimal fee if you don’t have a checkbook.
- Wire Transfers
A wire transfer, which enables you to send money electronically, is another choice for fast transfers of money across banks.
Wire transfers are a suitable option because there are nonbank companies such as Western Union who wish to find out how to move money without running through the bank.
It is easy to transfer money from one account to another through banks as well as using mobile apps. Now most probably, after reading this blog your all doubt was cleared regarding; how to transfer money to another bank account. In this technological era, you don’t need to go bank as you can easily transfer money from your mobile device using a mobile app.