How do I transfer money to another persons bank account?

The smartest place to shopCompare top high-yield savings accounts side-by-side, complete with objective reviews from the Nerds.If your funds are spread across accounts at different

How do I transfer money to another persons bank account?

The smartest place to shop

Compare top high-yield savings accounts side-by-side, complete with objective reviews from the Nerds.

If your funds are spread across accounts at different institutions, it helps to have an easy way to make transfers between them. Online transfers are a convenient way to move money from one bank account to another.

Online transfers are generally free, though some financial institutions do charge, and transfers usually take up to three business days to complete. Check with your institution when setting up a transfer to know when to expect funds to arrive and whether there are fees.

SavingsCash ManagementCDCheckingMoney Market

LendingClub Bank logo

LendingClub High-Yield Savings

LendingClub Bank logo
CIT Bank logo

CIT Bank Savings Connect

CIT Bank logo
Discover Bank logo

Discover Bank Online Savings

Discover Bank logo

APY

1.20%Advertised Online Savings Account APY is accurate as of 07/12/2022

Marcus by Goldman Sachs logo

Marcus by Goldman Sachs Online Savings Account

Marcus by Goldman Sachs logo

APY

1.20%1.20% APY (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 07/01/2022.

Citizens logo

Citizens Online Savings Account

Citizens logo

Min. balance for APY

$5,000

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

Wealthfront logo

Wealthfront Cash Account

Wealthfront logo
Aspiration logo

Aspiration Spend & Save Account - Aspiration Plus

Aspiration logo

APY

5.00%The Aspiration Save Accounts up to 5.00% Annual Percentage Yield (APY) with up to 83x the national interest rate is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are met. Customers not enrolled in Aspiration Plus receive 3.00% APY after conditions are met.

Betterment logo

Betterment Cash Reserve

Betterment logo

APY

1.10%The annual percentage yield ("APY") on the deposit balances in Betterment Cash Reserve ("Cash Reserve") is 1.10% and represents the weighted average of the APY on deposit balances at the banks participating in Cash Reserve (the "Program Banks") and is current as of June 22, 2022. This APY is variable and subject to change daily. Deposit balances are not allocated equally among the participating Program Banks. A minimum deposit of $10 is required, but there is no minimum balance required to be maintained. The APY available to a customer may be lower if that customer designates a bank or banks as ineligible to receive deposits. APY applies only to Cash Reserve and does not apply to checking accounts held through Betterment Checking. Cash Reserve and Betterment Checking are separate offerings and are not linked accounts.

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

Synchrony Bank logo

Synchrony Bank CD

Synchrony Bank logo

APY

2.65%APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC.

Discover Bank logo

Discover Bank CD

Discover Bank logo

APY

2.90%Annual Percentage Yield (APY) is accurate as of 07/12/2022

Checking accounts are used for day-to-day cash deposits and withdrawals.

Checking accounts are used for day-to-day cash deposits and withdrawals.

Current logo

Deposits are FDIC Insured

Current Account

Current logo
Chime logo

Deposits are FDIC Insured

Chime Checking Account

Chime logo

Money market accounts pay rates similar to savings accounts and have some checking features.

Money market accounts pay rates similar to savings accounts and have some checking features.

Quontic Bank logo

Quontic Money Market Account

Quontic Bank logo
CIT Bank logo

CIT Bank Money Market Account

CIT Bank logo
UFB Direct logo

UFB Direct Money Market Account

UFB Direct logo

How to transfer money from one bank to another online

To get started, youll need to set up a relationship between the two accounts you have at different banks  the one that will send money and the one to receive it.

Log in to the first banks website or mobile app and select the option for making transfers. There may be a choice for internal transfers, that is, moving money in between two accounts within the same bank  from checking to savings, for example. You want the external option, which lets you move funds out to a different bank.

2. Provide external account information

Have the second banks routing number and your account number handy. You can usually get this information from the banks website or mobile app, or printed paper check. You can also check this list of routing numbers at some of the largest banks.

3. Confirm the new account

After you enter the required information, the first bank will typically want to verify that you have access to the second banks account. You might be asked to enter your username and password for the second bank, which the first bank would then verify electronically. Another way the first bank could verify the account is to make a small deposit or two (think a few pennies each) and ask you to confirm the amounts. This process could take a couple of days to complete.

Once the account is confirmed, you can set up transfers from the sending banks website or app. Select the sending and receiving accounts, and enter the amount to be transferred and the date for the transaction to occur. From there, you can usually see which date the funds are expected to be available in the receiving account. Youll also want to choose whether you want to make a one-time transaction or a recurring transfer (once a week, for example). After youve made your choices, select the option to submit them.

Benefit to external bank transfers: Boost your savings yields

Bank transfers are common for people who have a checking account at one bank and a high-yield savings account at another bank. If you open a new savings account, you can link your existing checking account for automatic transfers.

This also works for online bank customers, who often need to link their existing bank accounts to fund their online accounts. These folks tend to get the benefit of better rates while having the convenience of keeping their existing accounts.

Check the limits to savings withdrawals

You can generally make as many transfers into savings accounts as youd like, but there are some points to consider when it comes to taking money out. Online withdrawals from savings accounts are considered convenient transactions per the Federal Reserve. There used to be a limit on the number of convenient transactions you could make per month. The Federal Reserve no longer enforces that limit, but if you have more than six convenient transactions in a month, some institutions will charge an excess withdrawal fee for each transaction over that cap. This fee is typically up to $10 per excess transaction. If you think you might run up against the limit, check with your financial institution to see if it caps withdrawals and charges a fee.

More options to send money to others

Online bill pay: If you dont own the account you plan to send money to, you may need to explore other options. Many banks offer online bill pay services, which send a check or electronic payment to a merchant or vendor on your behalf.

Peer-to-peer payments: If you need to send money to another individual quickly, you can also use a peer-to-peer payments service, such as Venmo, PayPal or Zelle.

Wire transfers: If you need to send thousands of dollars quickly, it may make sense to use a wire transfer. These services are not always free, but the funds often reach the recipient much faster, sometimes in as little as a few minutes.

Transferring funds from one bank account to another does not have to be a burden. Moving money can be just another online banking convenience.

Next: Best Savings Accounts

Ready to upgrade your savings? These high-yield accounts will help you grow your money faster.

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