How is money transfered from one bank to another?


Quick Answer

Some ways to transfer money from one bank to another include a wire transfer, writing a check or doing a transfer with an account and routing number. Customers should be aware that some financial institutions may charge a nominal fee for transferring money. The amount varies depending on service and bank.

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Full Answer

There are a number of reasons why a person might need to transfer funds from one bank account to another. Perhaps her son needs emergency funds in his account or she needs to pay a friend back for a favor. There are a variety of options when it comes to transferring money between banks.

  • Wire transfer - This type of transfer usually only takes one business day and involves direct communication between the two banks. Fees for this service are on the high side, averaging a total of $40, according to Mint.com.
  • Write a check - While this may be old-fashioned, sometimes writing a check is the easiest way to transfer money, and has the lowest cost. Some of the smaller banks may even credit the money on the same day it is deposited.
  • Do an online transfer - Use the account number and bank routing number of the person receiving the funds to do an online transfer. While most banks offer this option, the lag time may be as many as three business days.
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