Money 101: How to transfer money from one bank to another

Transferring money between banks is a common necessity, but it can work differently depending on the bank and the amount. Regardless of why or where you’re moving funds, it’s critical to know how to transfer money securely. Use this guide for a clear, step-by-step approach to transferring money between banks.

In-person bank transfers

In the era of online banking, you might rarely visit a physical bank. But some transactions are easier, safer, and sometimes even required in person. They can also have quicker processing times, though there may be an extra charge. In-person transfers are also necessary if you don’t have access to online banking, prefer face-to-face interactions, or want help opening a specific account or planning long-term.

To make an in-person transfer, visit the bank where your account is located or an affiliate branch. Bring any necessary identification and relevant account information, such as routing and account numbers for where you want to transfer. Once at the bank, you can speak to a teller or customer service representative to help you.

It's important to note that fees may apply for in-person bank transfers, especially if they involve sending money internationally or between different banks. These fees can vary depending on the amount being transferred and the specific policies of your bank. It's best to inquire about these with your bank.

Here are the steps to follow:

Step 1: Choose your transfer type

While at the counter, you can transfer money from account to account via bank transfer, money wire, or with a cashier’s check/money order. 

It's important to note the difference between a bank transfer and a wire transfer. Both enable the transfer of funds between two banks or financial institutions. But wire transfers are often used for transferring large sums of money because they can be faster and come with an added layer of security. Bank transfers are generally free or lower cost, and may take longer to process – but that’s improving. They’re usually used for lower-amount or more common transactions such as direct deposit. 

Step 2: Provide the necessary information

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Fill out the bank's transfer form, including the recipient's bank name, account number, and routing number. For international transfers, you may need the bank's SWIFT code (Society for Worldwide Interbank Financial Telecommunications) or BIC (Business Identifier Code). 

Step 3: Present your identification

You will need to show a valid ID to the teller to initiate the transfer. This may be your driver's license or another government-issued ID.

Step 4: Pay for the transfer

Some financial institutions charge service fees for certain types of transfers, namely money wires. If such fees arise, you’ll need to pay them to initiate your transfer. 

Digital bank transfers

Most banks now offer digital transfer services through their online portals. They’re usually straightforward, convenient, and efficient. To use this method, log in to your bank's online portal and follow the instructions for making a transfer. You may need to provide recipient details such as their name, account number, and routing number. The process can take anywhere from a few minutes to a few days, depending on the bank and destination country.

For international transfers, you may also have the option of using third-party digital transfer platforms. These services often have lower fees and faster processing times compared to traditional bank transfers.

It's important to note that if you choose to use a third-party platform for your transfer, both parties involved must have accounts with the same platform. Otherwise, there may be additional fees involved in the exchange of currencies.

Step 1: Log into your online banking account

Have your online banking credentials (username, password, and/or PIN) to access your account.

Step 2: Add the recipient

If this is the first time you're transferring to a specific account, you'll need to add the recipient's banking information, just as you would for an in-person transfer.

Step 3: Initiate the transfer

Once the recipient's information is added, you can decide the amount to transfer and the date you'd like the transaction to occur. If the recipient is with a different bank, there may be a small processing delay.

Step 4: Verify the transfer

Many banks will require a secondary verification step for added security, such as entering a code sent to your phone or email.

Money transfer apps

For instant transfers with minimal hassle, money transfer apps are a popular choice. These peer-to-peer apps differ from traditional money transfers in that they transfer digital funds from person to person (and sometimes business) within the app, often using a phone number, email address, or user name rather than bank routing details. Peer-to-peer apps facilitate quick transactions between different bank accounts, often for free or a significantly lower fee than traditional bank transfer methods.

Step 1: Download the app

Choose a reputable money transfer app and download it from the App Store or Google Play. Popular peer-to-peer apps include PayPal and Venmo. Zelle, a bank-based money transfer app, links your bank routing to another person’s bank routing. 

Step 2: Create an account

Sign up for an account within the app, which often requires linking your bank account to the service.

Step 3: Add the recipient

Enter the recipient's name and banking information. Some apps may also allow you to set up transfers using the recipient's phone number or email address, provided they also have the app.

Step 4: Initiate the transfer

Decide the amount to transfer and complete the transaction. The money should be accessible to the recipient almost immediately. If not, the app will typically provide an estimated time of arrival. Some institutions initiate security measures for the first transfer and may require additional verification steps.

Step 5: Track the transaction

Most money transfer apps allow you to track the status of your transfer. You can see when the recipient receives the funds and even receive notifications for successful transactions.

Benefits of using a money transfer app

• Ease and convenience: With just a few taps on your phone, you can initiate a transfer without having to visit a bank or fill out lengthy forms.

• Lower fees: As mentioned earlier, using a money transfer app can often be more cost-effective than traditional bank transfers. This is especially true for international transfers, where fees can add up quickly.

• Faster transactions: Instead of waiting several business days for a bank transfer to go through.

Transfer money to your kids with Greenlight

Greenlight makes it easy and provides a fast and secure way to send your kids money. They can access it with their debit card, check their balance, learn about personal finance, and more, all through an app on their phone or tablet. Greenlight also offers a way for other kids and adults to send money through a pay link, for birthdays, holidays, or just to pay them back for a split meal. 

Security considerations

Regardless of the method you choose, always prioritize security when transferring money between banks. Here's what you need to keep in mind:

• Use secure networks: Only conduct money transfers on secure networks, preferably your home Wi-Fi. Public Wi-Fi can be less secure and leaves you vulnerable to potential breaches.

• Double-check recipient information: Before finalizing a transfer, ensure the recipient's banking details are correct. A small typo could result in the wrong person receiving the money.

• Monitor your accounts: Regularly review your bank statements to verify that the transactions are accurate and as intended.

How to avoid scams when you transfer money from one bank to another

• When initiating a transfer, be extra vigilant about verifying the destination of funds if going outside your own bank. Especially with wire transfers, be sure to speak with a human being through the official phone number of the bank. 

• Be wary of unsolicited requests for money or personal data and sharing personal financial information. Reputable banks and financial institutions won’t ask you for personal information over email or text. 

• Always confirm the legitimacy of any transaction request with your bank. Scammers may try to exploit the urgency of money transfers, so it's always better to take a step back and double-check before proceeding. Look for these scammer red flags.

Transferring money between banks is a common and necessary task. Follow the steps outlined above to ensure your transfer is completed smoothly and securely. Remember: Always verify recipient information, monitor your accounts, and be cautious of potential scams. 

This blog post is provided "as is" and should not be relied upon as a substitute for professional advice. Some content in this post may have been created using artificial intelligence; however, every blog post is reviewed by at least two human editors.