How to Transfer Money from One Bank to Another

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Banking has changed significantly over the years. Many transactions can be completed online, from the comfort of your home or anywhere else you may be.

There’s no longer a need to go into a brick-and-mortar bank branch to transfer money.  Here’s how to transfer money from one bank to another: 

  1. Access your account through your bank’s online platform. 
  2. Navigate to the transfer feature.
  3. Select transfer to another bank. 
  4. Enter the details of the recipient bank.
  5. Enter the transaction details.
  6. Review the transfer information. 
  7. Complete the transfer.

Online banking simplifies your banking activities, as transferring money from one bank to another is one of many online features. The steps will be discussed thoroughly and will explain how to transfer money quickly and easily between two banks.

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1. Access Your Account Through Your Bank’s Online Platform

Your first step is logging into one of your banks' online platforms to access your account.  Most banks allow you to log in either through the mobile website or the bank’s app, which is the first step to linking the two accounts together. 

If you have not yet set up online banking, you’ll need to do so before you can transfer money between banks using this method. Setting up online banking is fairly straightforward, as all you’ll need to do is to verify your identity and follow the bank’s prompts.

2. Navigate to the Transfer Feature

Once you’re logged in, you’ll need to navigate to the transfer section of the website. When you locate the transfer section, click it. Most banks will give you two options: 

  • Internal transfer 
  • External transfer

If you are transferring from a different bank, you’ll need to click on “external transfer.” For our purposes, you’ll need to focus on the external transfer.

But, the internal transfer is for transferring money between accounts in the same bank. 

3. Select Transfer to Another Bank

As already mentioned, internal transfers allow you to move money between two accounts that are within the same bank. For instance, you may have a checking and savings account at one bank. 

But you also might have another account at a different bank that you want to transfer from. In this case, you’ll select the external transfer option.

External transfers provide you with the opportunity to move money out of one bank and into an account at another bank. 

4. Enter the Details of the Recipient Bank

Because you’re transferring outside of the bank, you’ll need to provide the destination information. In banking terms, this is the routing number and account number.

You’ll need to have the routing and account numbers available when you begin this step. While most banks have only one routing number, which you can perform a quick Google search to find, account numbers are specific to you. 

You can find the account number in one of three locations:

  • On the bank statement: It’s usually located in the top corner of the statement. 
  • On a check linked to the bank account: In fact, you’ll find both the routing and account number embedded at the bottom of each check. 
  • Within the external bank’s online portal or app: Much like the first step of this process, you can log into the other bank to access the routing and account number. For some banks, you may have another level of security before you’re provided the information.

You can also go to your bank and ask for this information.  Entering the routing and account numbers is a crucial step.

Inputting the wrong account number could result in your money being deposited into someone else’s account, so it’s always a good idea to double-check both numbers before moving forward. 

You’ll need to select the option to manually enter the other bank’s account and routing numbers. It varies by bank but will state a variation of the following:

  • Link accounts
  • Add account
  • Add external account

Once you enter the information, it’ll likely remain as an external account, streamlining the process the next time you want to transfer that bank account.

Usually, you’ll be able to name the account, which appears as a drop-down or something similar for ease of use in the future. 

5. Enter the Transaction Details

The next step is entering transaction details. The basic transaction details are the date when you want the funds to be transferred and the amount to be transferred.

Sometimes, you may need the money to arrive in the other bank’s account as soon as possible.  In other cases, you may want to schedule the transfer on a specific date. 

At this step, you’ll also enter the amount you wish to transfer. Ensure that the account you’re transferring from has enough funds remaining to cover any upcoming withdrawals or automatic payments. 

Finally, some banks allow you to make a recurring transfer. A recurring transfer is an automated deposit from one account to another. 

Many people choose recurring transfers from a checking account into a savings account.

6. Review the Transfer Information

You entered all the needed information above. Before hitting submit, you’ll have the opportunity to look over the transaction. A summary will pop up at this time, and if anything is incorrect, you can edit the details before moving forward.

7. Complete the Transfer

Finally, after completing the other steps, you’ll need to complete the transfer. Typically, you’ll have two choices available: 

  • Cancel
  • Submit 

Once you click submit, the process officially begins, and the banks electronically process the transaction behind the scenes. If there are any last-minute changes, some banks allow you to cancel the transaction for a period afterward. 

You’ll need to contact your bank to determine the allotted time frame to cancel a transfer. 

Generally speaking, internal transfers for the same day are immediate, meaning the money is seamlessly transferred in moments.

This is possible because the accounts are within the same bank.  External transfers, on the other hand, aren’t instantaneous. Because two different banks have to communicate with each other, additional time is needed to complete the transfer.

It typically takes three business days for the money to move from one bank to another.

Summary

Online banking can seem intimidating. However, transferring money from one bank to another bank isn’t difficult, and it can save unnecessary trips to the physical branch locations during banking hours that many find inconvenient. 

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