From time to time you will need to transfer money to a family member, colleague, friend or someone else. Although there are several ways to send money, there is no single option and each method has its advantages. So here are four ways to transfer money from one bank account to another.
Bank to bank transfers
Nowadays, transferring money between accounts of different banks is quite easy thanks to online banking.
If you are unsure of how to transfer money from one bank to anotherFollow these steps:
- Connect to your bank’s app or website on a private network
- Select the option to send or transfer money and click on transfer to another bank
- Enter the recipient’s account information. You will need the recipient’s name, routing number and account number from most banks.
- Complete transfer
Your bank may ask you to confirm that you are the account holder to authorize the transfer. If so, the transfer may take at least 48 hours. Some banks may also charge fees, you may want to clarify if there are any fees before making the transfer.
Point: A Routing Number – also known as a Routing Transit Number (RTN) or American Bankers Association (ABA) Routing Number is a nine-digit code that identifies your bank branch and location. Associated with your account number, it allows financial institutions to prove that you are the rightful owner of the bank account.
Recipients can find the routing number and account number by logging into their online banking accounts. However, if the recipient cannot find these numbers, ask them to contact their bank for assistance.
SoFi Invest experts recommend using wire transfers to send large sums of money. They can allow you to send more money than other methods, and transfers usually take less than a day.
However, they can be quite expensive, so you may want to find out about the fees before transferring funds. Also, although fast, transfers cannot be made on weekends or holidays.
Third party services
Third-party services are another great way to quickly send money to family and friends, often at no cost. Some third-party services you may want to consider include:
- Western Union
Remember that third-party services will charge you an exchange rate if you transfer money overseas. Often, third-party services charge high exchange fees, so you may want to confirm the exchange rate before making international money transfers.
If the recipient cannot receive money electronically, consider writing a check. Writing a check and depositing it in the recipient’s account, delivering it, or mailing it can be cheaper than other money transfer methods, especially if you have a free checking account.
However, while personal checks are a great way to send money to recipients who can’t receive money electronically, sending checks to recipients overseas can present several hurdles. For example, some banks may take a long time to clear foreign checks, while others may not even accept foreign checks. So if you’re sending money overseas, check to see if the recipient’s bank accepts foreign checks and ask how long they take to clear.
Ultimately, there is no one money transfer method that fits all circumstances. Therefore, before transferring money, weigh the pros and cons of each method to determine which method is right for you.