4 Ways to Transfer Money from One Bank to Another

If you want to get money from one bank to another, one of the easiest ways to do so is with direct transfers between bank accounts. Sending funds from an account you hold to another one is easier than ever before, and you have several options to do so, depending on your needs and timeline.

Here's a closer look at your options when transferring money from one bank to another and the steps you can take to send funds today.

Steps to Transfer Money Using Online Banking

If you're set up for online banking, you already have the tools to transfer money. With Synchrony Bank, you can start a transfer using the website or mobile app. Bank transfers in the United States are sometimes referred to as an EFT (electronic funds transfer) or ACH, which is short for the Federal Reserve's Automated Clearing House.¹

Tip: If you're linking a new account for the first time, you may have to go through verification steps, such as providing your online banking information or verifying deposit amounts. You may have to wait a day or two for verification deposits to appear on your other bank's online banking.²

 

1. Log into your bank account or use the bank's mobile app: Start by logging into your bank's website or mobile app to access online banking. If you're new to online banking, you need to set up a profile with a username and password.

2. Go to the transfer feature or tab: Find the mobile banking app or website section labeled "transfers" (or something similar). Click or tap to open that page to see your online transfer options.

3. Enter the recipient routing and account numbers: To add your account at another bank, you must enter a routing number and account number for the receiving account. The routing number determines the receiving bank, and the account number is your checking, savings or other account number that can receive online transfers.³ Getting this information right is important, so double-check the numbers before clicking the submit button.

4. Specify the transfer amount and type (one-time or recurring): Select the account from your linked account list and enter your transfer amount. You might also have to choose between one-time transfers and recurring transfers. A recurring transfer to a savings account is a great way to save automatically over time to help reach your financial goals.

5. Review the transfer details for accuracy: It's important to enter your information accurately with banking. For example, putting an extra digit in your transfer amount could cause serious problems. Just as you did when entering your account information for the first time, always double-check that your transfer is entered correctly.

6. Provide any additional required information: Occasionally, you may need to enter additional information for the transfer. Some banks ask you to enter whether it's a personal or business transfer, or they may offer the option to enter a memo or reference details. When sending funds to someone else, you may have to enter beneficiary details to ensure the payment goes through.

7. Authenticate your account ownership using the bank's provided method:For security purposes, your bank may ask for additional authentication to ensure the transfer isn't fraudulent. Authentication could include entering your password, answering security questions or typing a code from a two-factor authentication source.

8. Confirm and authorize the transfer, including applicable fees: If required, review the transfer information again and click the final button to confirm. Then, your transfer is on the way to the chosen account. While Synchrony Bank allows you to send transfers for free, some banks charge transfer fees.

9. Monitor your bank account for successful transfer completion: In most cases, transfers go through as expected without problems or additional input. Keep an eye on the receiving bank account to verify the funds show up. In most cases, ACH transfers take around one to three business days.⁴

ACH transfers are great because they're reasonably fast and very cheap (or even free!) in many cases. Even if you have to wait a day or two, it's usually much faster than sending a check in the mail and waiting for the deposit to clear.

Other Ways to Transfer Funds

ACH transfers are not the only way to transfer money from one bank to another. Here are other common methods to send funds to and from U.S. banks:

• • Check: A paper check is a tried-and-true method of transferring funds. You can write a check to yourself and deposit the check in another bank account. You can also write a check to another individual or business. You can send checks in the mail or hand them to someone else personally. Sometimes, the check isn't made available immediately after the deposit, whether deposited online or in person at a bank branch.⁵
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• • Wire transfer: Wire transfers are same-day transfers often used in real estate and for large business transactions. Wire transfers often require a fee, both for senders and recipients. Wire transfers are sometimes riskier than other transfer methods, as they're difficult to reverse, particularly for international wire transfers.⁶
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• • Peer-to-peer apps: Apps like Venmo, PayPal and Cash App are other options for sending funds, commonly used when sending money to someone else. When funds are held in an account outside a bank, they're not FDIC-insured.⁷

Outside of the United States, other options may be available. For example, sending funds with an email money transfer (EMT) is an option within Canada.⁸ In Brazil, the Pix system allows for near-instant payments for free using someone's mobile phone number or another identifier.⁹ In the U.S., ACH payments are typically the lowest-cost choice for fast and secure transfers from one bank to another.

Pros and Cons of Different Types of Money Transfers

If you're unsure how to send funds, consider these pros and cons of different transfer methods:

Transfer method	Benefits	Drawbacks
Electronic funds transfer (ACH)	Low-cost transfer that's easily entered using online or mobile banking.	It can take a few days to process.
Paper check	It's easy to send a check in the mail or hand someone a paper check, and checks are very cheap.	Slower in many situations, including the potential for the bank to hold funds temporarily. Paper checks expose your information to some risk of identity theft.
Wire transfer	Same-day transfers between banks.	Costly and difficult to reverse in the event of an error.
Peer-to-peer transfer	Free to send using popular mobile apps.	Funds can take time to move between your bank and the payment app. Funds are not FDIC-insured when not held in a bank.

 

Why Knowing How to Transfer Funds is Important

There are countless examples of when you may need to transfer funds. If you have a checking account at one bank and want to transfer funds to a high yield savings accountor money market account at another, funds transfers are easy, secure and low-cost (or free).

Everyone's finances are unique, so your reason for sending funds may differ from someone else's. But with the knowledge of how to send an electronic funds transfer from your bank's website or mobile app, you can quickly and confidently send money where you need it with a few simple steps.

If you're looking for a bank offering free transfers between accounts, even at other banks, check out the account offerings from Synchrony Bank.

 

Eric Rosenberg is a financial writer, speaker and consultant based in Ventura, California. His work has appeared in many online publications, including Time, Business Insider, NerdWallet, Investopedia and U.S. News & World Report. You can connect with him and learn more at EricRosenberg.com.

 

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