There are four ways to transfer funds between banks. Here is an overview of the pros and cons of each.
Wire transfers are the easiest option for most people and they are free. All you need is:
- An online account with your current bank
- The routing and account numbers of your new bank account
When you make an electronic transfer to another account at the same bank, it’s often instantaneous. But when you transfer funds to another bankit may take up to three business days.
Additionally, many banks limit the amount their customers can transfer per day or per month. Often these limits are several thousand dollars, so they should be enough for most people. But those looking to transfer large sums at a time may need to explore other options.
Advantages of electronic transfers
Disadvantages of wire transfers
- The transfer may take a few days
- Not ideal for big day transfers
How to transfer money to another bank electronically
If you want to transfer funds electronically to another bank, follow these steps:
- Log in to your online banking account at your current bank.
- Select the Transfer option. If you can’t find it, contact your bank for assistance.
- Enter the routing and account number of your new bank account.
- Select the amount you wish to transfer.
- Confirm the transfer and wait for the funds to appear in your new account.
Electronic transfers are an alternative if you need access to your funds quickly or if you need to transfer large sums all at once. These are similar to electronic transfers, but they happen much faster. Most domestic transfers can be processed the same day.