When you need to send money from one bank account to another, a bank-to-bank transfer—also known as a money transfer—is a reliable way to do so. This process involves moving funds between two financial institutions, allowing you to send cash from your bank account to someone else’s. Whether you’re paying bills, settling debts, or simply moving money from your savings account to your checking account, here’s how a bank-to-bank transfer works and how to initiate one yourself.
How do bank transfers work?
Bank transfers are a way to electronically send money from one financial institution to another such as ACH transfers and wire transfers.
Bank transfers work by utilizing interbank networks. Many bank transfers use the Society for Worldwide Interbank Financial Telecommunication network (SWIFT). The SWIFT network works for domestic and international transfers because it connects more than 10,000 banks and other financial institutions all around the world.
To initiate a transfer using SWIFT, you will need:
- Your recipient’s bank information, including name and branch address.
- Your recipient’s full name, address, and the type of account you are sending funds to.
- Your recipient’s account number or IBAN (International Bank Account Number). Both of these numbers can be found by either asking the bank or on bank statements.
- The recipient’s bank’s SWIFT code.
This information is then transferred through intermediary banks who ensure your funds get to the right place as fast as possible. These intermediary banks serve as middlemen which help process funds before they get to your recipient’s bank. Banks use intermediaries because there are too many accounts for one bank to manage all the transfers and funds. Because of this, funds are strategically dispersed to create a network of banks all around the world.
How to initiate a bank-to-bank transfer
- Visit your bank’s website. To start the money transfer, log in to your bank’s online portal or mobile app. Select the option for transferring money, which is usually labeled as “Funds Transfer,” “Wire Transfer,” or “Send Money.”
- Provide recipient details. Next, input the recipient’s account information. Make sure to double-check the recipient’s account number and the bank’s routing number to avoid any mistakes or delays.
- Verify and confirm. Review the information you’ve entered and confirm the transfer. Some banks may ask you to enter a one-time code they’ll send to your phone number for added security.
- Wait for processing. After confirming, your bank will process your money transfer. This can take a few hours to a couple of business days, depending on the banks involved.
- Look for notifications. You’ll receive a notification when the funds have successfully been transferred to the recipient’s account.
Costs and fees
Bank-to-bank transfers typically charge a fee for their services, so check your bank’s fine print before initiating a money transfer. This fee can vary depending on the amount and the destination.
Security measures
When it comes to handling your hard-earned money, security is a top priority. Many banks employ robust security measures, including encryption and identity verification, to ensure the safety of your money transfers.
How fast are bank-to-bank transfers?
The speed of bank-to-bank transfers can vary. Domestic transfers typically process faster, often within the same business day, while international transfers can take longer due to additional checks and regulations. Keep this in mind when planning your financial transactions.
How long do domestic bank transfers take?
Domestic bank-to-bank transfers within the United States are usually available the next business day. Transfers within the same bank will be faster and may be processed immediately. This is because the funds are staying within the same financial organization. Bank transfers between banks will take longer, up to three business days for some transactions, because they have to go through intermediary banks that help facilitate the transfer.
How long do international bank transfers take?
International transfers take between one and five business days. As mentioned, international bank transfers often use SWIFT, which is an interconnected network of banks that help mediate the transfer. Depending on the financial organization, your funds could go through up to three intermediary banks, all around the world, which can tack on more time for processing.
Does a bank transfer take longer than other types of money transfers?
Bank transfers are a common way to send money, but there are a number of other ways to transfer money around the world that may be beneficial.
To compare, let’s look at some different types of transfers:
- Wire transfers: Wire transfers are generally the fastest way to send money outside of the United States. Wire transfers happen instantaneously, making them a faster option than bank transfers – but they are also more expensive.
- ACH transfers: ACH transfers are a great option for sending money domestically, but they generally take longer than wire transfers because banks process transactions in batches, and only do so a few times a day. This means you may have to wait for the next batch of transfers before yours is processed. This, combined with the intermediary steps between banks, can slow down the transfer.
- Peer-to-peer applications: Peer-to-peer applications have grown in popularity thanks to apps like PayPal, Venmo, and Zelle, which make it easy to transfer funds to friends and family. These applications are a form of ACH transfers.
Transferring money with Western Union
While bank-to-bank transfers are reliable, they aren’t the fastest way to transfer money internationally. That’s why millions of people worldwide choose to transfer money with Western Union. Our services connect you with loved ones and friends from around the world, making it easy to send money worldwide.
Western Union offers a wide range of options for sending and receiving money, both domestically and internationally. Our user-friendly mobile app allows you to send money and track transfers. You can also pay bills, review exchange rates, and locate agents—all on the go. Whether you’re supporting family members overseas, sending money to a friend in need, or just exploring the world, Western Union has you covered.
