Move Money Between Your Own Accounts Bank to Bank Transfers
Information You Need in Order to Transfer Money
Depending on how you transfer money, there are some basic pieces ofinformation you should have on hand. For starters, you need to know how muchyou want to transfer, and you need to make sure that your account has enoughmoney to cover the transfer. If you try to use money that you don’t have, thetransaction may not go through. Even if it does, you may have to pay a fee,such as an overdraft fee.
You should also know the account numbers and routing numbers for both yourbank and the bank where you are sending the money. If you don’t know thosenumbers, there are a few places you can look. One is to get your accountnumber and routing number from a check. The routing number is the nine-digit,left-most number along the bottom. Your account number is the center numberalong the bottom your check. You should also be able to find these numbersthrough your online banking account.
You should also know the name and address of your bank and the bank you’resending to.
Simple Way to Transfer Money: Cash
A lot of banking today is digital, but you can still transfer money as coldhard cash. Withdrawing and depositing cash doesn’t always make sense, likewhen you’re moving large sums of money, but it could be a simple and freeoption in some circumstances. Cash could also be a good option if you need tomove the money immediately.
To avoid fees, your best bet is to withdraw money in-person. If you use anATM, your banks and/or the bank that owns the ATM may charge you a transactionfee. Most ATMs, and your personal account for that matter, also have dailywithdrawal limits of $600 or less.
Old-Fashioned Way to Transfer Money: Checks
A check is another simple way to transfer money. The best checking accountsalso provide you with free checks. To move money via check, you simply need towrite a check and then deposit it at the other bank. The rise of mobile checkdeposit also means that you probably don’t have to visit a bank to deposit acheck.
Checks work whether you’re depositing into an account you own or whetheryou’re sending money to someone else. The one thing to note is that checks arenot a good option if you need to move money as quickly as possible. It maytake a few days or even a week after you deposit a check for the funds totransfer.
We know that checks aren’t as popular as they used to be, so here’s a quickrefresher on how to write a check.
Move Money Between Your Own Accounts: Bank-to-Bank Transfers
If you need to transfer money between two accounts that you own, a bank-to-bank transfer could be your best bet. This is a digital payment that typicallyworks as an ACH payment. (If you have used direct deposit or paid your creditcard bill online, you have used ACH, or automatic clearing house, payments.)
Many banks allow free bank-to-bank transfers if you’re sending to anotheraccount that you own. You will just need to link the two accounts. You canusually do this through your bank’s online banking platform. Some banks,especially those without a big online presence, will require you to call orvisit a branch.
To link two accounts, you will need the account numbers, routing numbers andproof that you are the owner of both accounts. Once you create the link, youcan then send money easily between the two banks.
It is important to note that bank-to-bank transfers can take a few days toprocess.
Transferring Money to Someone Else’s Bank Account: Wire Transfers
If you’re transferring money to someone else’s account and you want to do itquickly, a wire transfer is probably the best option. Depending on when yousend it, the funds will arrive at the other bank on the same day or within onebusiness day. As mentioned above you will need the account and routing numbersfor your bank and the bank where you’re sending the money.
Wire transfers are also an easy way to send money internationally. To make aninternational wire transfer, you will need the same information plus a SWIFTcode, National ID or IBAN number of the receiving bank. If you are sending thewire transfer online, you should be able to find this number by searching withthe receiving bank’s name and address.
The drawback to a wire transfer is that you will have to pay a fee. The feetypically ranges from about $10 up to $40, though at most places it will be onthe higher end of that range.
Sending Money to Someone Else: Apps
Today, there are a number of apps with the sole purpose of helping you totransfer money. Also called P2P payment services, these apps have become avery popular way to send small amounts of money quickly. Two of the biggestservices are PayPal and Venmo. Many banks have also started offering P2Pservices, like Zelle and Popmoney.
If your bank offers one of these services, you may not need to create anaccount. It’s included with your bank account. For the most part, though, youwill need to create an account and link it to your bank account. The personreceiving your payment will also need to have an account in most cases.
Apps may give you the option to send payments by linking a credit card insteadof a bank account. However, this usually comes with a fee.
Tips for Maximizing Your Savings
* One of the best ways to save money is to spend less. This isn’t always easy but you can help yourself by making a budget. At the very least, a budget will show you where your money is going. That knowledge will help you align your spending with your goals. * A simple way to boost your savings is to have a savings account with a high-interest rate. Most large banks charge very low interest rates that earn you almost nothing. If you have a high interest over 1.75%, like at Ally or Synchrony, your money is working for you.
Photo credit: ©iStock.com/simonkr, ©iStock.com/AndreyPopov, ©iStock.com/Tatomm
Derek Silva, CEPF®
Derek Silva is determined to make personal finance accessible to everyone. Hewrites on a variety of personal finance topics for SmartAsset, serving as aretirement and credit card expert. Derek is a member of the Society forAdvancing Business Editing and Writing and a Certified Educator in PersonalFinance® (CEPF®). He has a degree from the University of Massachusetts Amherstand has spent time as an English language teacher in the Portuguese autonomousregion of the Azores. The message Derek hopes people take away from hiswriting is, “Don’t forget that money is just a tool to help you reach yourgoals and live the lifestyle you want.”
Why Do Debit Card Refunds Take Several Days to Appear?
When you return an item, or find a debit card charge on your account youdidn’t authorize, you want the money returned to your bank accountimmediately. Unfortunately, it doesn’t work that way with debit cards. TheElectronic Fund Transfer Act allows banks up to 10 business days to decidewhether or not to issue a refund to your bank account. This means funds you’rerelying on to pay your bills may be delayed.
When you make a debit card purchase, the money is transferred out of your bankaccount to the merchant. The bank cannot issue an immediate refund to yourdebit card because the process is instant, and your money is no longer there.
If you need a refund, you must contact the merchant to process the request fora refund. The merchant then will issue a refund to the card used in thetransaction, if your request is not denied. This must be done this first,before the bank can credit any funds to your account, and can take a fewbusiness days to process.
If you feel you are owed a refund, but the merchant refuses to give you one,you may need to file a dispute with your bank.
Dispute vs. Fraud
Unanticipated charges on your debit card can be very frustrating, but there’sa big difference between filing a dispute regarding charges made with yourdebit card and claiming fraud.
If you know the person to whom you made the transaction on your debit card, ifyou signed up for a free trial with a company or if you voluntarily loanedyour card to someone, it’s typically not considered fraud. A charge is usuallyonly categorized as fraudulent if you’ve never done business with the merchantor you don’t know the person who used your debit card.
In some cases, a bank will credit your account the amount being disputed whilethe fraud investigation is underway. However, some bank policies may hold theconsumer liable for up to $50 of fraudulent charges if the bank is notifiedwithin two days after noticing the charges. If the bank is notified more thantwo days after noticing the charges, this liability can go up to $500.
Speeding the Process Up
To move the refund process for fraud or disputes along faster, it’s importantto be properly prepared. If you’re filing a fraud claim, double-check theforms to make sure you’ve filled everything out correctly. When paperwork hasto be sent back because it’s incorrect, it takes longer to process.
For payment disputes, provide the bank with all the relevant information youhave to back up your claim, including a cancellation number, e-mail oranything else you have in writing.
Purchases Not for Debit
Using a debit card for purchases from certain merchants provides a greaterrisk than others. Sometimes it’s safer to use other forms of payment such asPayPal, cash or a credit card to safeguard your bank account from fraud. Atestablishments such as gas stations, restaurants and online stores, it’s bestnot to use your debit card.
Zip Money Review: costs and features
How does Zip Money work?
You can sign up for a Zip Money account online or in-store. The applicationtakes about three minutes and requires your residential, employment andfinancial information as well as your email address and phone number.
When you apply, you’ll need to select from these credit limit tiers:
$1,000| $40| $0 —|—|— $2,000| $40| $25 $3,000| $80 or 3% (whichever is greater)| $49 $4,000| $80 or 3% (whichever is greater)| $75 $5,000 – $30,000| $80 or 3% (whichever is greater)| $99
If you are approved for an account you will be sent a contract which willindicate the interest-free period you will receive. All Zip Money accountscome with a minimum of three months interest free but some come with longerperiods. If you don’t have an order attached to your application then thisperiod will not be stated: it is only when you make a purchase that theinterest-free period will begin.
Once you agree to the contract and provide your payment information, you canuse and manage your account. Each purchase you make with your new account mustbe authorised by both you and Zip. After your purchase is authorised, Zip willpay the merchant on your behalf.