In other cases, I might be sending money to someone else, which also requires a bank to bank transfer. I myself have three different banks I use for my personal and business needs, and I initiate transfers between them at least once a week. Transferring money between different bank accounts is a common need for most people. How to Transfer Money from One Bank to Another In addition to being faster than many other traditional transfer options, the ACH is often more secure than wire transfers and other types of electronic payment because it is backed by the self-regulating NACHA. It’s an electronic system that transfers money in large batches overnight. The ACH was created in the 1970s as a faster alternative to checks and a cheaper solution than wire transfers. When your employer sends your paycheck via direct deposit, they’re using the ACH. How Do Banks Transfer Money?Įvery major bank uses the Automated Clearing House (ACH) system to transfer money. If you want to transfer money between bank accounts, whether they’re your own, or you’re sending money to someone else, here are the best ways to do so. You can’t just call up your bank and ask them to move the funds, and actively withdrawing and then depositing the money is an unnecessary hassle. It seems like such a simple concept, but transferring large amounts of money almost always involves jumping through some hoops. When someone is setting up a savings account for the first time, they’ll often ask, “How do I actually move the money from my checking to my savings?” Which is why I’ve created this guide on how to transfer money from one bank to another bank. As a personal finance writer, I’m often answering questions from friends and family about basic financial principles.
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