How to transfer money from one bank to another (step-by-step instructions)

Quick answer: A bank-to-bank transfer is when you move money from one bank to another electronically. Banks use a system called an Automated Clearing House (ACH) to carry out these transactions, saving you the time and effort of physically withdrawing and re-depositing money.
The method you choose depends on how fast you need the money to arrive, how much you’re sending, and what fees you’re willing to pay.

What are bank-to-bank transfers?

A bank-to-bank transfer is when you move money from one bank to another bank. This can be done electronically or via a check.

Bank-to-bank transfers are also known as external transfers as opposed to internal transfers, which occur when moving money from one account to another with the same bank.

We can now conveniently do bank-to-bank transfers electronically, which saves us the time and effort of physically withdrawing money and depositing it into a separate bank account. To carry out these transactions, banks use a system called an Automated Clearing House or ACH.

What to consider when transferring money from one bank to another

When it comes to transferring money from one bank to another, there are a few things to consider to ensure you use the right method. Important things to keep in mind include:

• Timing. When do you need the money to reflect in the other account? Some bank transfers take a lot longer than others. So, if there is urgency you may want to choose a method that allows for instantaneous transfers.
• Fees. Transferring money from one account to the other is usually free, but there are certain transfers that cost money, such as wire transfers.
• Transfer limits. The amount of money you wish to transfer will also determine your method of transferring. For example, you may need to use the wire transfer method for large sums.

How to transfer money from one bank to another online

There are many different ways to transfer money from one bank to another or from one account to another. The method will depend on several factors, including the destination of the funds, the time constraints involved, and the amount of money transferred.

Let’s take a look at the different ways of transferring money between banks.

External electronic fund transfers

External electronic fund transfers are from one bank to another bank. To transfer money to an account with a different bank from your own, you’ll need to use your bank’s app or online banking website.

You will need the external bank’s routing number or account number in order to transfer money to that account so make sure you have this on hand.

Peer-to-peer transfers

For quick and easy transfers to friends, family members, or even small businesses, peer-to-peer (P2P) transfers are an easy and safe solution.

Peer-to-peer payment apps include Venmo, PayPal, Zelle, and Cash App.

Depending on the method used, the funds may show up in the receiver’s account immediately or it can take a few days.

With PayPal, there is a feature to automatically sweep available funds into a chosen bank account. However, not all P2P transfer apps have this feature.

When signing up for any P2P transfer app, it is also important to consider the different fees, processing times, and transaction limits.

Wire transfers

Wire transfers are the best way to send large sums of money in a short period of time. This method works well regardless of whether the transferee is with the same or a different bank.

Once the funds have been transferred, they are usually available to the recipient within one business day. This of course does not include weekends or bank holidays, so correct timing is essential to the success of these transfers.

The only downside to wire transfers is the cost, which varies depending on location. For example, a domestic wire transfer costs around $25 in the US and international ones can cost around $50. In the UK, international wire transfers can cost anywhere between £20 to £40.

Mobile apps

Using mobile apps like PayPal, MoneyGram, and Western Union are also quick, easy, and cost-effective ways to transfer money without the involvement of a bank. Note that many of them will charge a small fee when moving money from the app to a bank account.

Mobile apps also provide the opportunity to transfer money internationally and in foreign currency. However, it’s important to note that exchange rate fees may apply.

Transferring money internationally

With the growth in eCommerce, more and more people and companies are conducting business on a global scale. As such, they need to be able to transfer money internationally. Luckily, there are several ways to do so.

Choosing the method that’s right for you will largely depend on factors like time limits, the amount of money you want to transfer, and the fees involved.

The bank, app, or transfer service you choose will have clear instructions on how to transfer money internationally. However, the process will generally involve the following steps:

Note that you will usually pay a fee for transferring money internationally.

What other methods are available to transfer money?

Besides the methods already mentioned, there are other, more traditional ways to transfer money between bank accounts.

Internal electronic funds transfers

Internal electronic funds transfers are used when transferring money between your own bank accounts within the same bank. For example, from a checking account to a savings account. This is a simple transaction that is instantaneous and usually free, depending on your bank.

Most banks provide an option for one-off or recurring transfers. If you select a recurring transfer, the same amount of money will transfer on the same day of each month to the same account.

Once you have approved the transfer, the money will reflect in the chosen account.

Paper checks

To transfer money from one account to another, you could write a paper check. This, however, only applies when transferring from one checking account to another. With the introduction of the mobile check deposit, depositing money with paper checks can now be done from the comfort of one’s home.

A downside to paper checks, however, is the turnaround time. It takes a few business days for the transfer to take place whereas transfers done electronically often reflect instantly or after one business day

Apps

With the introduction of apps into the banking world, payments and transfers have never been easier. A mobile payment app provides a safe and fast method of transferring money to people both locally and internationally.

Payoneer is a great option that provides a user-friendly platform to transfer and manage your money. It allows you to request payments, receive payments, pay suppliers, manage and pay your taxes like VAT (Value Added Tax), and transfer money internationally.

Bank transfers: The bottom line

When it comes to transferring money, whether it’s internally to another one of your accounts or a large sum to an international supplier, it can be a stressful ordeal. So, it’s important to choose the right method for the type of transfer you need to perform.

Payoneer helps you to effortlessly manage your money and transactions on a global scale alongside your normal bank accounts. It provides a one-stop shop for all domestic and international transactions to ensure transfers happen quickly, safely, and cost-effectively.

Key takeaways:

• Before transferring, consider three things: timing (how urgent it is), fees (wire transfers cost money), and transfer limits (large sums may require a wire transfer).
• For external electronic transfers, you’ll need the recipient bank’s routing number and account number. You can initiate this through your bank’s app or online banking website.
• Peer-to-peer apps like Venmo, PayPal, Zelle, and Cash App are a quick option for smaller transfers. Depending on the method, funds may arrive instantly or take a few days.
• Wire transfers are best for large or international payments, but come with fees and can take several days to process. Always verify recipient details before sending.
• For cross-border business payments, platforms like Payoneer offer a faster, lower-cost alternative to traditional wire transfers, with support for multiple currencies across 190+ countries.