4 Ways To Transfer Money From One Bank To Another

Moving money between banks is something most people need to do at some point. Maybe you’re paying rent to a landlord who banks elsewhere, sending money to family or transferring funds between your own accounts at different institutions.

The good news? You have several options, each with different speeds, costs and convenience levels. Wire transfers can move money in hours but cost around $25. ACH transfers take longer but are typically free. Third-party apps like Zelle sit somewhere in the middle.

What are bank-to-bank transfers?

A bank-to-bank transfer moves funds from an account at one financial institution to another. Banks call these “external transfers” since the money leaves their system entirely.

You can typically set up these transfers through your bank’s website, mobile app by phone or at a branch. The process involves providing the recipient’s banking details and specifying how much to send.

What you need before transferring money

Before sending money, gather the recipient’s information. For most methods, you’ll need their bank routing number and account number. You can find routing numbers on checks or by searching online for “[Bank Name] routing number.”

For services like Zelle, you only need the person’s phone number or email address that’s linked to their bank account.

Double-check all information before hitting send. Bank transfers are hard to reverse once they’re complete.

Factors to consider when choosing a transfer method

Your priorities will determine which transfer method works best for your situation.

• Speed matters most when you’re making time-sensitive payments like rent due today or emergency funds for family. Wire transfers and some third-party apps can move money within hours or minutes.
• Cost matters most when you’re making routine transfers or sending large amounts where percentage-based fees add up. ACH transfers are typically free, making them ideal for non-urgent moves.
• Convenience matters most when you’re transferring money regularly. Having the recipient’s phone number is easier than looking up their routing and account numbers every time.
• Security matters most when you’re sending large amounts or dealing with unfamiliar recipients. Traditional bank channels offer more fraud protection than newer apps.

4 ways to transfer money between banks

1. Wire transfers

A wire transfer is one of the fastest ways to transfer money electronically from one person to another through a bank or a nonbank provider such as Wise (formerly TransferWise).

To send a wire, you’ll need the recipient’s full name, address, bank routing number and account number. Most banks let you set up wires online, by phone or at a branch.

The downside? Cost. Banks charge an average of $25 for outgoing domestic wires, according to Bankrate’s latest fee survey. International wires cost even more, often $40-50 plus currency conversion fees. Wire transfers also can’t be sent on weekends or bank holidays, and they’re nearly impossible to reverse once sent.

2. ACH transfers

Then there are Automated Clearing House (ACH) transfers. These move money through a network that processes billions of transactions annually.

ACH transfers typically take 1-3 business days and are usually free. You can set them up through your bank’s website or app using the recipient’s routing and account numbers.

Many banks now offer same-day ACH for a small fee (usually $5-10), which can get money there within hours rather than days.

The Federal Reserve processes ACH transfers in batches rather than individually, which is why they take longer than wires but cost much less.

3. Third-party companies and mobile apps

Banks aren’t the only option for sending money. PayPal, MoneyGram, Zelle, Venmo, and other third-party companies are also considerations. Transfers can take seconds or a few days, depending on the method selected.

Zelle is built into most major banks’ apps and websites. It can send money in minutes using just a phone number or email address (here’s how). Most transfers are free, and there’s no separate app to download if your bank supports it. Check out our beginner’s guide to using Zelle to learn more.

PayPal works with or without a bank connection. Free bank transfers take 1-3 business days, while instant transfers cost 1.75% of the amount sent.

Venmo (owned by PayPal) is popular for splitting bills and casual payments. It includes social features but has lower transfer limits than some alternatives.

Cash App offers instant transfers for a 1.5% fee or free transfers that take 1-3 business days.

Each service has different limits, fees and features. Zelle typically has the highest daily limits ($2,500-5,000 depending on your bank), while others may limit you to $3,000 per week or less.

4. Write a check

Checks might seem old-fashioned, but they’re still useful for certain situations. You can write a check and mail it, deposit it through mobile banking or deliver it in person. Here’s a guide on how to write a check.

Cashier’s checks offer more security for large amounts since they’re guaranteed by the bank. Money orders work similarly but are available at grocery stores and other locations beyond banks.

Check clearing times vary but typically take 1-2 business days for local banks and up to five days for out-of-state institutions. Banks may place holds on large checks or deposits from new accounts.

What are the benefits of external bank transfers?

External bank transfers allow you to transfer funds between banks or send funds to another person without having to visit a branch or ATM.

• Account optimization: You can keep high-yield savings at online banks while maintaining checking accounts at local branches for easy access.
• Bill paying flexibility: Send money to landlords, contractors or family members regardless of which bank they use.
• Emergency access: Quickly move money when you need funds in a specific account.
• Business needs: Separate personal and business banking while still moving money between accounts as needed.

Compare savings account rates and find the best options for your money with Bankrate’s best high-yield savings accounts.

Transferring money between your own accounts

If you have accounts at multiple banks, you have several options for moving your own money around.

Most banks let you link external accounts for ACH transfers. This process typically involves providing the other bank’s routing and account numbers, then verifying small test deposits. Zelle can work for self-transfers if both banks support it and you use the same phone number or email for both accounts.

Lower-tech options include writing yourself a check or withdrawing cash from one bank to deposit at another, though these methods have obvious limitations for large amounts.

The best transfer method depends on your specific needs, but having the right bank accounts makes any transfer easier. check out Bankrate’s best checking accounts to find the right option for you.

Bottom line

Moving money between banks is easier than ever, whether you need same-day delivery or can wait a few days to save on fees. Wire transfers offer speed for urgent needs, ACH transfers provide free options for routine moves and third-party apps balance convenience with reasonable costs.

With the right approach, you can move money efficiently while minimizing costs and maximizing convenience.