Direct transfers from one bank account to another are a convenient way to move funds without withdrawing cash. Whether you need to send money to your family members in another country or reimburse your coworker for coffee, it’s important to know how to process these types of transfers. With this guide, we introduce all the options available to send money from one bank account to another and make your financial transactions easier.
What is a bank transfer?
Bank transfers are movements of money from one bank account to another. The Consumer Financial Protection Bureau (CFPB) states that these transfers refer to funds sent from one financial institution to another. For this reason, they’re also known as electronic funds transfers or remittance services.
How to process a transfer from one bank account to another
There are several ways to transfer funds from one account to another. Thanks to modern banking networks, it’s easy to move money between your own accounts, to accounts at other financial institutions, or to accounts in other countries. These days, you can process safe and efficient transfers in a matter of minutes.
To choose the most convenient method, we first need to figure out which is the type of transfer works best for you:
Intrabank transfers refer to movements of money within your own bank. For example, if you have a checking and a savings account, the easiest way to move funds between your accounts is with an intrabank transfer.
With this type of transactions, money never leaves your own accounts. It simply transfers from one account to another.
If you want to send money from your bank account to someone else at another financial institution, this is known as an interbank transfer. It’s a convenient way to send money to family members or pay your friends back.
Zelle’s network is a free option to send money directly to a friend or family member’s bank account, even if they don’t bank at the same institution as you do. Many U.S. banks are affiliated with Zelle and allow you to use this service right from the bank’s app or website. The Zelle app is also available on its own, if you prefer to use it that way.
To complete an interbank transfer, you may need to provide your beneficiary’s:
- First and last name
- Email address
- Phone number
- Bank account number
- Routing number
International interbank transfers
International interbank transfers are one of the easiest ways to send money directly from your bank account to another account in a different country. They are also known as bank wires.
The information that you’ll need to provide for an international interbank transfer includes:
- Beneficiary’s first and last name
- Beneficiary’s home address
- International Bank Account Number (IBAN)
- Routing number
- Type of account
- Society for Worldwide Interbank Financial Telecommunication (SWIFT) code
Depending on the country where you’d like to send the funds, an international transfer could take anywhere between 1 and 5 business days. The cost of these transactions could range between $35 and $50.
Due to their high costs and the delays of international transfers, many people prefer to use mobile apps to send money to their family members outside the United States. Depending on your beneficiary’s country of residence, these are some of the remittance companies that offer direct deposit to international bank accounts, as well as fast service and low fees:
Different ways to send money from one account to another
With the spread of Internet banking services and the popularity of mobile apps, there are many ways to send money from one account to another. That being said, it’s important to remember that some banks can charge for transfer services. Your bank may also limit the amount of money that you can send per day or in a period of one month.
If you want to schedule recurring transfers or make immediate payments, these are some of the easiest and safest ways to process your transactions:
From your mobile app
It’s possible to process money transfers in minutes with your bank’s mobile app. The steps to follow vary from one bank to another, but they generally include the following:
- Log into your account with your username and password
- Choose the option to transfer to another bank
- Enter the requested information (this may be the bank account and routing number, or your beneficiary’s phone number or email address)
- Send the desired quantity
From your bank’s website
The process to send money from one bank to another, using your bank’s website, is very similar to when you use their mobile app. To process an online transfer, you’ll need to follow these steps:
- Log into your account
- Click on the bank transfers service
- Provide your beneficiary’s information
- Send the funds
If you plan to repeat this transfer on a regular basis, you may be able to create a profile for your beneficiary. Many banking institutions also allow you to schedule these transfers ahead of time and choose the frequency of the transaction.
Many account holders also use these automatic transfers to move funds to their savings or investment accounts. This is a good habit to get into in order to help you reach personal financial goals.
If you find it easier to process money transfers in person, you can also visit your bank’s nearest branch. Once there, the bank representative will ask for the required information to complete the transaction.
Some banks only process international wire transfers in person. If this is the case with your financial institution, remember to take your photo ID. The banker will need to verify your identity to confirm that you are the account holder.
Money transfer apps
There are also many mobile apps that allow you to send money directly to your beneficiary’s bank account. These apps are independent from banking institutions and offer a fast service that is usually free. For these reasons, they’re a very popular way to send payments among friends, family, or informal businesses.
In most cases, these apps are only available in the United States. Some of the most popular are:
- Cash App: Formerly known as Square App, this service is now named Cash App. It allows you to send and receive money, while also connecting to your bank account and offering the option to spend money directly from the app as a digital wallet.
- Apple Pay: With Apple Pay, iOS users can send and receive money immediately. A simple text message is all it takes to use Apple Pay. The app also connects to debit cards like your PODERcard, as well as credit cards.
- Google Pay: With Google Pay, you can send and receive money among other users. All you need to know is your beneficiary’s phone number to process transfers in only minutes.
- Venmo: The Venmo app is an easy way to send payments, receive money, and accept cash gifts electronically. On this platform, you can also process transactions using crypto!
Frequently asked questions
How long does it take to process a transfer from one bank to another?
The speed of bank transfers depends on how you choose to send the money and where your beneficiary is located. When using systems like Zelle, Interbank transfers could take as little as a few minutes. Wire transfers, on the other hand, could take up to 5 days if you’re sending money internationally.
Are there limits or commissions for bank transfers?
Each institution has its own limits regarding the amount of money that you can send per day. These daily limits could be anywhere between $2,000 and $25,000. In some cases, this amount may depend on your banking history.
The commissions that banks charge for transfers also vary. U.S. money transfers from one account to another are free when you use Zelle or other peer-to-peer apps.
According to the Foreign Account Tax Compliance Act (FATCA), you must report any outgoing international transfer if the amount is greater than $10,000.
Intrabank international transfers usually cost between $35 and $50. This price tends to be a fixed fee, not a percentage of the amount that you are sending. In some cases, your beneficiary’s bank may charge a fee for receiving the money. To calculate the exact cost of your transfers, we recommend contacting both financial institutions.
If you prefer to use mobile apps to process your transfers, these may have a maximum transaction amount between $300 and $5,000. Before processing your transfer, double-check your app’s limits.
How many transfers can I process per day?
Aside from maximum dollar amounts, some banks also limit the number of transfers that you can process each day. Other banks allow you to make as many transfers as you wish, as long as the total amount is within the maximum allowed for one day. To learn more about your account’s limits, it’s best to speak directly with your bank.
Certain mobile apps also limit the number of transactions that you can process per day. Others only limit the total dollar amount. To avoid confusion, it’s always best to verify these details on the app that you wish to use.
Send money in minutes!
Direct account transfers are a useful tool that lets you send money quickly, safely, and easily. With these services and your PODERcard, you can save time and money on your bank transfers.Remember, the team at SABEResPODER is here to help! Feel free to reach out if you have any questions or concerns on the subject. Our mission is to provide you with all the necessary information to help you take control of your personal finances.