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Here’s How to Transfer Money From One Bank to Another

Moving money within accounts at one financial institution is easy enough. You can visit your bank in person, give them a call or use its website or app to move funds from one account to another.

But what if you have bank accounts at separate banks or credit unions? What if you have retirement accounts to fund? What if you need to transfer your money to someone else, whether at the same bank or a different institution?

Transferring money from one bank to another can be a little more complicated, but the good news is, you have multiple options. One is likely to make sense for your situation.

This article breaks down how to transfer money from one bank to another into two categories: transferring your money into one of your own bank accounts or transferring your money to someone else.

How to Transfer Money Between Your Own Bank Accounts

Many people have separate bank accounts for various purposes. For instance, entrepreneurs keep their personal finances separate from their business finances and might have incentives to keep the accounts with different banks and credit unions.

Other savvy savers may bank online for their savings because they are after a higher APY (i.e., interest rate) but have a checking account with a local bank for ease of access. Investors can easily rack up various accounts for savings, checking, money market, stocks and IRAs.

Whatever your reason for managing separate accounts with separate banks, you have a few methods for transferring money between those accounts.

Setting Up Automated Clearing House (ACH) Transfers

The safest, most reliable, and thus most common way to transfer money from one bank account to another is through ACH transfers. ACH was established in the 1970s as a cheaper, more efficient alternative to paper checks and wire transfers.

Since then, most employers have adopted ACH transfers as their payment mechanism; 93% of Americans now receive their paycheck via direct deposit.

ACH and electronic funds transfer are often used interchangeably. However, ACH is a type of EFT. EFT is a broader term that includes other transfer methods, like digital payments and wire transfers.

To transfer funds from one of your bank accounts to another using ACH, you’ll first need to link your two accounts via your online banking platform. For the sake of example, let’s name your two financial institutions Penny Credit Union and Hoarder Bank.

For this example, we’ll assume you want to transfer $5,000 from your Penny Credit Union checking account to your Hoarder Bank savings account:

Step 1: Find the Correct Transfer Page

Log in to your Penny Credit Union Account online or via its mobile app. Find the “Transfer Funds” action using the site’s or app’s menu. Then locate the option for external transfers and select an option along the lines of “Link an external account.”

Step 2: Provide Proof That You Are the Account Owner

Provide Penny Credit Union with the account number and routing number for your Hoarder Bank account when prompted. To determine your account and routing numbers, you can reference a check. The nine-digit number in the bottom left is your routing number, and the number immediately to the right is your account number.

Step 3: Verify the Account

Penny Credit Union will then ask to verify the account, typically by using a third-party program to log in to your other account on your behalf or by making minor deposits and withdrawals.

The first option requires that you provide Penny Credit Union with your username and password for Hoarder Bank. This can get messy if you have two-factor authentication turned on for the Hoarder Bank account. The benefit of this option is that it’s immediate, but the drawback is that you’re providing personal information to another institution.

The second option may take longer, but it’s also more likely to be secure. In this scenario, Penny Credit Union will make multiple deposits into your Hoarder Bank account, typically amounting to less than $1. Don’t get too excited; the credit union will immediately withdraw that money, and then you have to report the deposit amounts to confirm the account is yours. This can take multiple business days.

Step 4: Move the Money

Once you have linked your Penny Credit Union and Hoarder Bank accounts, you can transfer the $5,000 from one to the other. You will also be set up for all future transfers.

Pro Tip

At most banks, you can typically only withdraw funds from a savings account six times in a calendar month before being rejected or incurring fees.

ACH transfers are the easiest, safest, and often most convenient way to transfer money from one bank account to another, but there are other, less elegant methods.

Writing Yourself a Check

A woman writes a check.

You can also transfer money from one bank account to another by simply writing yourself a check. For example, if you want to transfer $100 from the Penny Credit Union checking account in the previous example to your Hoarder Bank savings account, grab your credit union checkbook and fill out a check for $100, addressed to yourself. Then head to Hoarder Bank to deposit it (or use your smartphone app to complete a mobile deposit).

Write something like “Transfer to Hoarder savings” on the memo line to jog your memory about that particular check when balancing your checkbook.

Pro Tip

Not sure how to write a check? Check out our simple check-writing how-to for step-by-step guidance.

Withdrawing and Depositing Cash

Don’t have a checkbook? No problem. If you don’t mind driving to your bank (or at least a nearby ATM), you can withdraw the amount of money you’d like to transfer from one account, then simply drive to the second institution (or an ATM) and deposit the funds.

Pro Tip

Avoid paying ATM fees by using an in-network ATM.

Transferring Money to Someone Else’s Account

As much as we’d like to hoard all our pennies (and dollars and even Ben Franklins) to ourselves, sometimes we need to transfer money to someone else’s bank account. There are a few common ways to do this.

Using a Wire Transfer

You can conduct a wire transfer at a bank or with an external provider, like Western Union. Wire transfers tend to be faster than ACH deposits (domestic can be same-day and international is typically overnight to a few days) and are often the preferred method when making a down payment and/or paying closing costs for a house when a lender is involved.

However, wire transfers are costly (for the payer and the payee) compared to alternatives:

  • Median domestic incoming wire transfer cost: $15
  • Median domestic outgoing wire transfer cost: $25
  • Median international incoming wire transfer cost: $15
  • Median international outgoing wire transfer cost: $45

To complete a wire transfer, you will need to know the recipient’s name, the recipient’s account and routing numbers, your own account and routing numbers (if not going through your own bank) and the recipient’s contact info (name, address and phone number should suffice). You will typically also need to provide a photo ID.

Theoretically, you could also use a wire transfer to send money from one of your own accounts to another, but as this is costly, this should be your last resort.

Writing a Check or Paying Cash

If the recipient can meet with you in person or wait until you can mail a check — and then doesn’t mind depositing the funds themselves — you can also transfer money to them by writing a check or withdrawing the funds from your account (at the bank or an ATM) and paying in cash.

Don’t pay in cash if you need an electronic record of the payment; save cash for transfers with family and friends, like giving your college student gas money or paying your neighbor for shoveling your driveway.

Money Transfer Apps

Money transfer apps are growing in popularity, so much so that Venmo has its own social media feed that lets you see what your friends are paying each other for. As long as you and your pay recipient both have the same app, transferring funds is no problem (and instant). Common apps include PayPal, Venmo, Cash App, Zelle, Apple Pay, Google Pay and Chase QuickPay.

To use the app, you have to link it to your bank account, which requires much of the same work as linking your bank accounts for ACH transfers does.

As an example, here are the steps you need to take to link your bank account to PayPal:

1. Log in to PayPal on a computer or via your smartphone app.

2. Click “Wallet.”

3. Click “Link a bank.”

4. Search for your bank.

5. Use Yodlee to confirm your bank account by providing your username and password (immediate) or link your bank manually by providing the checking and routing number (one to three business days).

If you go the manual route, PayPal will make two small deposits into your account and then immediately withdraw them. You will then need to report the deposit amounts to confirm that the requested account is yours. You may want to consider this option for security reasons.

You can also link a card instead of a bank, which will allow you to start making transactions faster, but using a card instead of a bank costs money. This is true of most payment apps.

Pros and Cons of Different Transfer Methods

So what’s the best way to transfer money? It really depends on the urgency with which you need to transfer it, how much you need to transfer and how much you’re willing to spend for added efficiency and/or security. Here are some of the benefits and drawbacks of each.

  ACH Transfer Wire Transfers Money Transfer App Checks Withdrawal and Deposit
Pros
  • No cost
  • n

  • Typically no (or high) limit on amount to be transferred
  • n

  • Safe and reliable
  • Fast (can be same-day)
  • n

  • Relatively secure
  • Fast transfer
  • n

  • Easy, mobile-based process
  • No cost (unless you must pay to get checks)
  • No cost (assuming no ATM fees)
Cons
  • Typically takes between two and three business days
  • High fees for payer and payee
  • n

  • Varying limits on amount to be transferred
  • Takes longer to fund account from app
  • n

  • Can carry fees
  • n

  • Limits on transfer amounts
  • No guarantee of immediate deposit by recipient
  • n

  • Can require mail or physical meet-up
  • n

  • Risk of being lost
  • Less paper trail
  • n

  • Greater risk of loss or theft
  • n

  • Requires physical exchange

What You’ll Need When Transferring Funds

Whenever you’re transferring funds via ACH or wire transfer, you’ll need to know:

  • The name of the bank to which you are transferring funds.
  • The recipient’s full name (either your name if transferring to your own account or the other person’s full name if moving money to someone else).
  • The account type to which you are transferring (checking or savings).
  • The routing number, which is a bank’s nine-digit code that uniquely identifies it as a financial institution that is either federally or state chartered and carries an account with the Federal Reserve.
  • The account number, which is unique to you or the recipient.
  • The recipient’s personal information, including phone number and address.

When transferring via app, you can typically search for the recipient’s username or handle. If you are expecting someone to send you money via a payment app and you have a common name (cough cough Tim Moore), ensure that you either create a unique username or confirm with the person sending you money that they have the right boring combination of first name + last name + number.

When writing a check, you only need to know the recipient’s name or company to which they would like the check made out. If mailing the check, you will obviously need to find the recipient’s address.

Timothy Moore is a market research editing and graphic design manager and a freelance writer covering topics on personal finance, travel, careers, education, pet care and automotive. He has worked in the field since 2012 with publications  like The Penny Hoarder, Debt.com, Ladders, WDW Magazine, Glassdoor and The News Wheel. He lives in Ohio with his fiance.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

The Best Checking Accounts for Your Business

A business checking account assists small business owners keep their business stores segregated from personal funds.

No matter the type of business you’re in, you need a checking account in order to stay on top of bills and invoices. You too need an accounting in order to accept and deposit payments from customers or clients, and you probably need a debit card that lets you paying off business-related expenses directly.

Get started with our top select: Chase Total Business Checking

The best business checking accounts make it easy to create a “home base” for your business finances — one where you can accept pays, stay on top of payroll, and access important banking interests. Some of the best business checking accounts even offer initial cash bonuses you can earn if you sign on and set up qualifying direct situates or gratify minimum equilibrium requirements. Most importantly, many of the top business checking accounts available today function predominantly online, represent you can open an report practically and without ever leaving your home.

Best Business Checking Accounts of 2020

As a business owner, you have a lot of issues to worry about. Your business checking account shouldn’t be one of them. We compared all the top business checking accounts available today to find the ones with the best features and benefits with the lowest fees( or even no fees ).

If you need a new checking account for your business, you should start your search now 😛 TAGEND

Company Highlights Get Started

chase total business checking

Chase Total Business Checking

$200 cash bonus available when opening an history $15 monthly upkeep reward you are able to scaped with an average daily a better balance between $ 1,500 or Chase Private Client or Chase Sapphire Checking account More than 16,000 ATMs and approximately 5,000 bank disciplines nationwide Endless electronic sediments

Learn More

citizens bank business checking

Citizens Bank Clearly Better Business Checking

No monthly maintenance rewards or minimum match requirements Access over 3,100 ATMs and 1,100 bank branches nationwide Free 200 deals every month

Learn More

axos business checking

Axos Bank Business Interest Checking

Earn. 80% APY on deposits when you match minimum daily balance requirement Inexhaustible domestic ATM fee repayments $100 minimum deposit required to is starting Get up to 50 free deals per month

Learn More

bbva business checking

BBVA USA Business Connect Checking

Access over 43,000 ATMs nationwide without a fee Most transactions are unlimited No monthly service fee or chronicle minimums Mobile deposit available

Learn More

capital one spark business

Capital One Spark Business Checking

Broad ATM network with more than 39,000 accessible nationwide $35 monthly reward, forfeited with an average daily a better balance between $ 25,000 or more Endless business each month Free online invoice remuneration and business debit card

Learn More

us bank silver business checking account

U.S. Bank Silver Business Checking

Qualify for 150 free transactions per affirmation repetition ($. 50 per event subsequently) 25 free money deposits per testimony hertz Access over 3,000 limbs Access U.S. Bank, MoneyPass, and participating 7-Eleven store ATMs.

Learn More

Best Business Checking Reviews

The best business chequing account furnish one tonne of benefits and boasts for small businesses without any burdensome rewards. The following remembers go over the highlights of each account including checking aspects each offers, monthly fees( and how to avoid them ), and any bonus offers available.

Chase Total Business Checking

Chase Total Business Checking is favourite with customers thanks to its many user-friendly features and its initial bonus offer. Currently, consumers can be eligible for a $200 cash bonus with “qualifying activities.” If you read the fine print, the requirements for the cash bonus are very reasonable. All you have to do is open an accounting, deposit at least $ 1,000 in new money within 20 days, and terminated five debits or direct monies within 60 days. Formerly you accomplish the qualifying activities and maintain the balance for at least 60 daytimes, the bonus is yours.

Other benefits you can expect with Chase Total Business Checking include convenient access to more than 16,000 ATMs and roughly 5,000 bank diverges nationwide, unlimited electronic lodges at free of charge, access to online banking and greenback compensate, and 24/7 customer services. Chase Total Business Checking does charge a $15 monthly service fee, but you can avoid this fee if you maintain a minimum daily a better balance between $ 1,500 or you have a Chase Private Client or Chase Sapphire Checking account.

Get $ 200 Cash Bonus with Chase Today !

Highlights 😛 TAGEND

Receive a $200 cash bonus when you open an report and ended qualifying tasks $15 monthly maintenance reward you are able to eschewed with an average daily balance of $ 1,500 or Chase Private Client or Chase Sapphire Checking account Access more than 16,000 ATMs and almost 5,000 bank sprigs nationwide Endless electronic accumulations

Citizens Bank Clearly Better Business Checking

If you live in an area where Citizens Bank has a presence, you should also check out Citizens Bank Clearly Better Business Checking. This account comes with no monthly upkeep reward and no minimum equilibrium requirement. You too get your first 200 transactions for free each month, which is more than enough for most small businesses.

One downside of Citizens Bank is that there are only 1,100 disciplines around the country and that their business checking accounts aren’t accessible nationally. They do have over 3,100 ATMs you can access without a fee, and Citizens Bank does have its own app, however.

For the most part, this business checking account is best for someone who lives near qualifying ATMs, berths less than 200 deals every month, and doesn’t want to pay any fees for a business checking account.

Highlights 😛 TAGEND

No monthly maintenance costs or minimum match requirements Access over 3,100 ATMs and 1,100 bank limbs nationwide Free 200 transactions every month

Axos Bank Business Interest Checking

Most business checking account don’t offer interest on deposits, but Axos Bank Business Interest Checking is one of the few that does. With this account, you’ll earn. 80% APY on your match without a monthly maintenance fee equipped you maintain an average daily balance of $ 5,000. You can also access online and portable banking, including proposal remunerate and the option for remote deposits.

Other benefits of Axos Bank Business Interest Checking include the fact you get unlimited domestic ATM fee refunds and your first organize of 50 checks for free. You too get up to 50 free business per month ($. 50 each thereafter) and up to 60 remote situates per month. Finally, all we need to do is an initial accumulation of $100 to get started with this account.

Highlights 😛 TAGEND

Earn. 80% APY on situates when you gratify minimum daily symmetry requirement Inexhaustible domestic ATM fee reimbursements $100 minimum deposit required to is starting Get up to 50 free deals per month

BBVA USA Business Connect Checking

BBVA USA Business Connect Checking forms business bank easy thanks to its online and portable access and broad ATM access. “There arent” monthly service charges associated with this account, and there are no minimum balance requirements, either. You can access all BBVA Compass, Allpoint, and participating 7-Eleven ATMs as well, so “youve had” easy access to your coin no matter where you live.

Mobile deposit is available, and you can qualify for a debit card that works in conjunction with your checking account at no additional charge. Most transactions are unlimited each month but do get only five in-branch withdrawals or process checks blended per month for free. You simply need $100 to open this account as well, so it’s easy to get started.

Highlights 😛 TAGEND

Access over 43,000 ATMs nationwide without a cost Most transactions are unlimited No monthly service charges or detail minimums Mobile deposit available

Capital One Spark Business Checking

While Capital One is well known for its popular personal and business charge card and its Capital One 360 chequing account, this bank also offers an extremely popular checking account for small businesses. Capital One Spark Business Checking, as it is called, promises to “unlimit your business” with free unlimited events each month. Your first five domestic cables are also free each month, and you can access your coin faster with next day availability.

A rather steep monthly service fee of $35 exercises with this account, but you can have your fee forfeited if your 30 to 90 -day average balance is $25,000 or more. You likewise get free online bill pay and free debit cards for your detail, and you’ll have access to over 39,000 Capital one and Allpoint ATMs nationwide.

Highlights 😛 TAGEND

Broad ATM network with more than 39,000 available national $35 monthly reward, forfeited with an average daily balance of $ 25,000 or more Inexhaustible transactions each month Free online money salary and business debit cards

U.S. Bank Silver Business Checking

Silver Business Checking from U.S. Bank is another report that are in a position make sense for small businesses in nearly any field. This account comes with 150 free deals per word cycles/second, 25 free cash monies per word repetition, and possibilities for remote check deposit.

This account too comes with online and portable invoice salary, and there are no monthly maintenance fees. Also , note that U.S. Bank has over 3,000 fields that are mostly on the Eastern coast, in order to be allowed to do some of your banking in-person if you live near one.

Highlights 😛 TAGEND

Qualify for 150 free events per testimony repetition ($. 50 per transaction thereafter) 25 free money lodges per proclamation cycle Access over 3,000 branches Access U.S. Bank, MoneyPass, and participating 7-Eleven collect ATMs.

How We Chose the Best Business Checking Accounts

The business current account listed above are some of the ultimate best available today, but we didn’t come up with this list out of thin air. After considering more than 30 business checking account in existence, we articulated our roster of top pickings based on the following factors 😛 TAGEND Low or No Fees

It’s not uncommon for chequing account “re coming with” monthly maintenance rewards, but we still foresee these fees should be avoided when possible. As a outcome, this is the only way considered business checking account that don’t accuse any monthly fees or have costs you are able to forestalled with qualifying work. We also made sure the qualifying activity was ” acceptable” and realistic for most small businesses to achieve.

Vast ATM Network

Since most business owners need an easy way to access cash in their chronicles, we threw preference to the business checking accounts with expansive ATM structures. We also considered banks that offer free debit card for note incumbents since this gives them access their funds and construct acquires directly from their accounts.

Online and Mobile Access

In today’s modern world, you really need to work with a bank that lets you manage your reports, offer statutes, and keep up with transactions on the go. We exclusively considered banks with a strong online and mobile existence for this list, although some banks with brick and mortar disciplines also made the cut.

Reasonable Restraints on Transactions

We likewise maintained our look out for arbitrary limits on transactions, which is why the banks on our schedule are so specific. While some of the banks that built our directory do restriction transactions, we find their restrictions acceptable for most businesses.

Choosing the Best Business Checking Account — Factors to Help You Decide

All the business checking accounts that originated our list are good ones, but it’s likely a few of them would suit your needs better than the remain. Now are the factors you should consider and compare before you sign up.

Local ATM Access

If you want to be able to access your funds with a debit card, you’ll want to make sure your bank offers ATMs close to where you live or work. Many banks have extremely broad networks, but that doesn’t mean they have ATMs in your locality. The best lane to be informed about is to head to each bank’s business page or ATM search page to check. If you don’t make sure you’ll have access to local ATMs, you could wind up pay a lot more in foreign ATM fees than you want.

Access to Brick and Mortar Bank Branches

Do you bank online, or do you like to have access to a physical sprig? This is a good question to ask yourself as you equate banks and all they have to offer. Some of the banks in our higher-ranking have brick and mortar points you have been able visit to constitute deposits and ask questions. However, others mainly operate online.

Boast and Parts

Make sure you consider banks that give the functionality you need the most, whether that’s access to a mobile app, remote monies, or online greenback salary boasts. The banks on our roster tend to offer the standard facets available today, but you should still double-check to make sure your new business chequing account will let you bank the mode you want.

Maintenance Costs

If a monthly maintenance fee is charged on accounts you’re considering, you should be able to have it waived with a minimum detail equilibrium requirement or minimum pleasure like direct deposits. Monthly upkeep costs are very common among business checking account, so they shouldn’t be a deal-breaker. Just make sure you are either cozy with the fee or able to have it forfeited without too much effort on your part.

Deal Restrictions

Finally, event restraints are a real sticking point with numerous business checking accounts. This is especially true for businesses that have a ton of small business each month since even small-scale busines rewards of $. 50 each can add up fast.

If your business only has a handful of events every month, this detail may not matter a lot to you. Still, you should check your current business checking account to get an average of how many situates and debits your business necessary each month. From there, you’ll be able to choose a business checking account that volunteers fairly free transactions to get you through each month.

Business Checking Account Best Practices

If you’re in world markets for a brand-new business current account, that’s generally a good indicate you’re on the right track. Having a separate account to manage your business revenue and pays to marketers can help you stay organized and bypassed mingling personal and business stores, but it can also help you access powerful tools that allows you to take your business to the next level.

Consider these gratuities as you select a business checking account and start using your account to help your business stretch 😛 TAGEND 1. Use a business checking account to reach aims faster.

No matter the goals you have for your start-up or small business, a business checking account can help you get there faster. Not only can you save duration by organizing your business investments under the umbrella of a new checking and savings account, but you can earn interest on your sediments and develop business abundance faster.

2. Consider separate business reports for different business dares.

Also, consider whether it establishes feel to open additional business accountings if you come up with a secondary business idea and want to avoid intermixing monies. Since many business current account don’t come with any rewards, you can easily manage your histories without having to pay extra for the privilege.

3. Pick up a business credit card that works in conjunction with your business chequing account.

Also check whether the bank you’re considering offers a business credit card, as many of the larger banks do. Chase, for example, offers popular business bank account but too pass and remunerations placards to enterprises that help people rack up cash back or flexible proceed reinforces for each dollar they spend.

4. Download your bank’s mobile app and sign up for regular notifications.

Finally, consider downloading your bank’s mobile app if they have one. Not exclusively will this help you check in with your balance and upcoming bills while you’re on the go, but you can sign up for notifications that will alert you when a deposit is cleared or your detail equilibrium is low.

In Summary: The Best Business Checking Accounts

Whatever your business goals may be, a good business checking account can help you organize and reach those goals even faster.

Chase Total Business Checking Citizens Bank Clearly Better Business Checking Axos Bank Business Interest Checking BBVA USA Business Connect Checking Capital One Spark Business Checking U.S. Bank Silver Business Checking

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