Whether you’re paying a downpayment on the house, repaying a debt, or paying a freelancer for some work, you may need to transfer money to another individual.
There are always some basics to check before you begin transferring money. First, you want to make sure there is no withdrawal limit.
Like a high-interest savings account, some higher-yield accounts will limit the number of withdrawals done in a month, quarter, or year. Always check to see if this could become an issue.
Here are ways to transfer money between banks with little or no fees:
Checks
The old school way of transferring money from your account to another person’s account is to write a check. Thanks to modern technology, the recipient can scan the check into their phone app, and the funds are instantly in their account.
Best of all, there is no fee, only the initial cost of the checks.
Transfer From Bank A To Bank B
Many people have multiple bank accounts. Therefore, they will want to transfer some of their funds into another account that could be used for savings, a trip, or even the downpayment for a home. Sometimes the funds are to an account that earns more interest or has other desirable perks
What is needed is the basic information, including the routing number and account number. Transferring funds is usually free. But, there could be fees involved if there is an international transfer.
However, it can take one to three days to accomplish this transfer.
Email Transfer Services
It is becoming more common for people to send others a bank transfer using only email. However, they do not need to know the recipient’s personal information, including bank numbers or addresses.
While the process seems new, the bank itself is still processing the bank transfer the traditional method using routing numbers. So you just do not need to obtain this information for them. This method allows for privacy.
Use An App
According to the experts at SoFi, “If you’re transferring money to an account that you also own, using your bank’s online transfer service can be a simple solution.” Financial institutions like SoFi offer an app that you can install on your smartphone. You can transfer money from your account to someone else’s. Like SoFI (SoFi Bank), some banks will make the funds instantly available if both parties are banking with that bank.
You don’t even have to leave your desk for this sort of fast transaction.
Determine If A Wire Transfer Is Necessary
Often we can rush to solve a problem without considering all of the possible options. For example, if you face high wire transfer fees, you may want to think this over.
Ask yourself a few questions. First, do you need to get this money transferred right away? Can you use another method to save money? Sometimes the temptation of convenience can sabotage your saving goals.
Ask the recipient about some other inexpensive options. Once you stop the nickel and dime game, you can see real progress in your financial life.
Learn what all the options are. Your knowledge will help you save your hard-earned money and see you achieve your financial goals faster.
