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Best Ways to Send Money Between Bank Accounts

Best Ways to Send Money Between Bank Accounts

Is there really a “Best” way to send money between bank accounts? There are so many methods for sending and receiving money because people need different ways to send money. Each money-sending method was created to serve a certain need. That need may be a need to transfer money quickly, a need to transfer money without paying fees, and many other reasons why we need so many money-transfer methods. This article only deals with sending money, and I mention that because I am aware there are quite a few similar methods that apply for sending and receiving money, but this article doesn’t really cover all the receiving methods, whereas it does cover the most popular sending methods.

Note On My Wordage

When I say the word “Bank,” I mean online bank, offline bank, credit union or money company. I am referring to whatever you are using as your regular checking account.
pink gun shooting fake money

Internal Bank-to-Bank Transfer

Your bank should allow you to send money between bank accounts if you are sending money between bank accounts that they control and maintain. For example, they should allow you to send money from your checking account to your savings account, credit card account, and money market account without charging you a fee if they are the ones controlling and maintenance those accounts.

There are also banks that will allow you to transfer money to accounts that they do not control. Not only will they allow you to transfer to external accounts, but they will also allow you to transfer without charging you a fee. Some will allow you to send the money instantly for free, and others will make you wait overnight for the money to move and clear in the other account.

External Bank-to-Bank Transfer

Your bank may allow you to send money between bank accounts where the recipient account is not administered or maintained by your bank. Some banks are going to charge you to send money to an external account, but there are plenty of banks that do not charge a fee for transfers to other banks so long as they are domestic banks and not offshore banks. If your bank has a habit of charging you for transfers, then it may be time to switch banks.

Load It Into PayPal And Withdraw It To Another Account

A common method, albeit a long method, to send money between bank accounts is to load it into PayPal and withdraw it into another account. It doesn’t cost you any sort of fee to load money into your PayPal account. Adding money can sometimes take a few days. Once your money is in the account, you are able to withdraw it to any account you wish. Once the money is up there, you may withdraw the money to whichever bank account you wish.

Load It Into A Third-Party Service

PayPal offer a commonly used way to send money between bank accounts if your banks charge for transfers. If you are not happy using PayPal, you may try other online wallets that are not as popular. For example, you may load money into your Google wallet and then withdraw that money into another account. The process is just as slow as using PayPal, so using third-party services may not be a good idea.

Find A Bank That Doesn’t Charge For Internal Bank Transfers

The answer is simple if you are looking to avoid fees. If you wish to send money between bank accounts and your bank keeps charging you for sending money and for your transfers, then find a bank that doesn’t charge for transfers. There are so many banks, money companies and credit unions out there that you are not restricted when it comes to choice. Use the power of selective shopping by going out of your way to seek out the best possible deal whenever possible. Search for the bank that gives you the most while asking for the least.

Find A Bank That Doesn’t Charge For External Bank Transfers

Fewer and fewer banks charge for sending money between your internal accounts because it is a little self-defeating. Yet, there are plenty of banks that selectively charge fees. For example, they may not charge a fee to transfers to your joint account, but they charge for transferring to your saving account. As I say, there are fewer banks that charge for transferring between your internal accounts, but some banks still charge fees for transferring to external (different bank) accounts. They charge you fees to send money between bank accounts because they want to discourage you from sending money to other banks. They figure that if you are charged a fee for transferring money to other banks, then maybe you won’t do it as often. Again, if a bank does this to you, then find another bank.

ACH Transfers From One Account To Another

When you send money between bank accounts, some will use internal networks, others will use domestic wire services, and others will use ACH transfers. An Automated Clearing House is a third party. Your bank sends the ACH a list of all the transfers that were requested that day, and the ACH conducts all the transfers for the bank. The money is transferred overnight, so most people receive their transfers the day after the money was sent. When you transfer money from one account to another, (be it to and from an account within your bank or be it to an external bank) your bank may decide to use ACH transfers, which means your money will probably take one business day to send and clear.

Wire Transfers From One Account To Another

Your bank may not give you the option of transferring from one account to another account quickly. They may make you wait a business day or longer. In that case, you may need send a wire transfer. Be aware that most banks charge for sending wire transfers, so they should only be used if you have no other quick method for sending money between bank accounts.

Some banks may only offer slow methods for transferring your money so that you are forced to use wire transfers. For example, they may allow you to transfer, but it takes two or three days. They then offer a wire transfer where it only takes a few seconds for your transfer to complete. If your bank is pulling this move, then consider changing banks because it is a naughty trick.

Draw Out The Money And Add Cash To Another Account

Go to a branch of your bank, and go to an ATM and take out some money, or you may draw money out with the bank teller. You then walk over to the other bank and deposit your money using a bank teller. Also, you may draw money from your own bank account using a bank teller, and then use that same teller to put the money into another person’s account within the same bank, (assuming the other person banks with the same bank that you do).

Transferring money using this method is probably the most inconvenient, but some people do it because they have concerns over their Internet security where they do not feel that they may enter their banking information safely into their desktop or mobile device. Some people do it this way because they want things processed today and they want to be sure it all goes through and happens right away.

Use P2P Payment Tools That Usually Come As Apps

You may be able to take money from one bank and put it in another using P2P payment tools. For example, there are tools such as Venmo and Square Cash that allow you to do just that. They allow you to draw money from your account and then send it to another person’s online wallet account. The other person will also need an account with the online wallet and will also need an app to access the money. Using these tools you are not really sending money between bank accounts, but you are drawing money from your bank account and are sending it to somebody else.

Your Bank May Offer PopMoney Transfers

PopMoney is an independent business that uses other businesses to transfer money from various accounts. Banks sign up with PopMoney so that those same banks may offer online person-to-person transfers via their Internet banking services. PopMoney transfers are usually free, and in money cases they are also quick. If your bank offers PopMoney transfers, then it may be a suitable money transfer option.

Write A Check Or Get A Money Order

If you are looking to transfer money from one account to another account, then writing a check or getting a money order is one way to go. These days, there are so many alternatives to writing a check or getting a money order that you should seriously reconsider them as methods for transferring your money. Nevertheless, you can write a check or get a money order if you wish to transfer money from one account to another–you may even write a check for yourself if you wish.

Common Money Transfer Problems – A Troubleshooting Section

Gun shooting money

Obviously, we cannot address specific cases where there has been a problem with a money transfer. However, we can talk about a few of the more common money transfer problems. Above all else, if you have a money transfer problem, do not try to solve it by sending the transfer again. Get your money back or make sure the first transfer sent before you initiate another transfer.

Your Money Is Taking Longer Than Usual To Transfer

It is very annoying when you frequently transfer money from one account to another and one day it seems to take longer for no reason. Usually the transfer happens quickly, maybe within minutes or maybe by the next day, and then for no reason it takes longer than usual.

The most common reason for this is due to some sort of security check. It is not just banks that randomly hold money for security checks. For example, you can use PayPal over 100 times in one year and never have an issue, and then one day you withdraw your money and it shows as “Pending” and stays that way for three days. They are just security holds and banks usually release your money within two days.

The Recipient Is Lying To You

Do not overlook the fact that your recipient may be lying to you about not receiving the money. If it is your utility company, then they are less likely to be lying about it. If it is a relative or friend, then there is a chance he or she is lying to you so that you send the money again.

Check on your online statement and/or your online “Recent activity” section to see if the transfer was returned to you. If the transfer is still on your recent activity section and doesn’t show any signs that it was returned, then contact the customer service department to find out if the transfer definitely went through. Go back and confirm the recipient details and check them again with the information you plugged into your online bank account when you conducted the transfer. If the transfer still shows that it has gone through, and your bank’s customer service department says it has gone through, and all the information you entered was correct, then the problem is on the recipient’s end and not yours.

You Entered Incorrect recipient Details

You conduct your transfer and you enter the details. At some point you find out that the money you sent has not been received by the other party. There are numerous reasons why this may happen, but one of the most common is that the sender has entered incorrect information when you conducted the transfer.

Is there a way that you may check to see what you entered as recipient details? Maybe you can ask the customer service department for those details. You can check to see if you entered the correct details into the system.

You Entered Incorrect Recipient Details And Your Money Is Still Missing

If you set a transfer and the money has not reached its target, and then you discover it is because you entered incorrect details, then you need to contact the bank’s customer service department. They should open a case and take it from there. If your money does not come back, then wait a day or two and contact the bank’s customer service department again.

Some banks have systems in place where if you send money and the details are incorrect, then they will try the transfer another day and then another day, and then they send it back to you because the transfer failed. Still, even if this is the case with your bank, you should probably keep in touch with the customer service department just in case. Remember to save all of your correspondence when you contact the customer service department just in case you need to sue the bank at a later date.

You Didn’t Have Enough Money In Your Account

This sort of thing happens quite often. The sender creates a transfer and the sender has enough money in his or her account. Between the time the transfer was required and the time it transacts, something happens so there is not enough money in the account to complete the transfer.

If you have signed up or auto-enrolled in your bank’s overdraft protection, then your account transfer will go through and your account will overdraw. If you have opted out of overdraft protection, then you will not overdraw, but your transfer will not go through either.

Your Bank Blocked The Transfer

Banks blocking your transfers is not as rare as you may think. For example, if you create a transfer for $10 to a friend, and then later on in the day you transfer another $10, your bank may issue a warning or block your transfer until you verify it. They do this because they assume you are making a mistake by paying the same amount twice in one day.

There are other times when your bank may block a transfer, such as if you are transferring more out of the country that is allowed by federal or state law. They may even stop money being transferred if it is going to a high-risk account, such as if you are transferring money into a gambling website for the first time. I have also been told that your bank may stop your money being transferred if there is a suspicion that the money is going into a criminal’s account, but that sounds to me like an easy-to-believe lie.

Conclusion – Which Transfer Method Should You Pick?

Maybe the question is less about which methods you should pick and more about which bank you should choose if you frequently transfer money to and from different accounts, (be they your own accounts or other people’s accounts).

Consider the fact that there are banks out there that will allow you to transfer money to-and-from your accounts within the same bank without charging you a fee. Plus, such transfers often happen within a few minutes unless you are transferring money to your credit card account. If your bank doesn’t allow such internal transfers, if your bank makes you wait for such transfers and/or if your bank charges fees for such transfers, then maybe you need to switch banks.

Consider the fact that some banks allow you to transfer money to other people’s bank accounts without charging you a fee, and they also transfer your money right away without making you wait. Wouldn’t you prefer a bank that offers this sort of service swiftly and for free?

Maybe the issue is more about which bank you choose rather than which transfer method you choose. You should have an account that allows you to transfer quickly and without having to pay fees for the transfer. Maybe they can get away with such fees on business accounts, but they are not very fair on regular checking accounts.


About The Author

Ash The Great

After a varied career in different industries from the hospitality industry to the financial consultancy industry, Ash now spends his days working as a professional writer.

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