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 your bank’s website or app to move funds from one account to another.

But what if you have accounts at separate banks, fintechs or credit unions? What if you have retirement accounts to fund? What if you need to send 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 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 and 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 want a higher APY 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 money transfers between those accounts.

Setting Up Automated Clearing House (ACH) Transfers

The safest, most reliable, and thus most common form of bank-to-bank transfers 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; more than 93% of Americans now receive their paycheck via direct deposit.

ACH and electronic funds transfer (EFT) are often used interchangeably….