Bank accounts are designed to help consumers park their cash in a secure place, while typically collecting some level of interest at the same time. But from time to time, there may be a need to move money from one bank account to another.
Whether it’s because you need to make funds available by moving your money to a more accessible account or are transferring funds to an account owned by someone else, there could be any number of reasons why you may choose to move money between bank accounts. Let’s get into more detail about transferring funds into another bank account, and how you might go about doing that.
Reasons People Transfer Money To A Bank Account
Why would you even want to transfer money to a bank account in the first place?
Here are some common reasons why people move their funds.
- Moving money into a higher-interest account
- Combining finances between spouses
- Sending money to someone else
- Switching banks
- Paying for rent
- Moving money to an account that can be accessed via a bank machine
- Paying back a friend or acquaintance
Whatever the reason may be for you wanting or needing to transfer funds between bank accounts, you can do so in a few different ways, some of which don’t require you to leave the house. The method that you choose to transfer money to a bank account is ultimately up to you, as well as where you want to send it and how quickly you need the money moved.
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Ways To Transfer Money To A Bank Account
There are various ways to move money into a bank account, including the following:
Wire Transfers – If moving money and having access to it quickly is necessary, then a wire transfer may be one of the better options. Wire transfers can help you move money from one bank account to another quickly. In many cases, the funds can be transferred within the day, or at least within one business day.
You can even transfer funds internationally. Keep in mind that there is a fee associated with making wire transfers, usually anywhere from $10 to $40. Plus, you’ll need to supply specific pieces of information to successfully transfer funds via a wire transfer, including the account and routing numbers from both your bank and the bank that you are sending the funds to. International wire transfers will require even more information, including a National ID or IBAN number from the bank receiving the funds.
Apps/Online – These days, there seems to be an app for just about everything, and that includes moving money. These handy apps have become a popular way to send funds to other accounts fairly quickly. Some of the more popular money transferring apps include:
- PayPal
- Venmo
- OFX
- Google Pay
- Square
- TransferWise
- Zelle
- Popmoney
You will have to create an account to use these apps, though that might not be necessary if your bank offers any of these services, as it would be included with your bank account. But more often than not, an account will need to be created and linked to your bank account. The person who you are sending the money to will also require an account in most cases
Interac e-transfer – Another quick way to transfer money from one bank account to another is through an Interac e-transfer. This is a fast, easy, and secure way to send money to anyone who uses online banking. The participating bank will transfer the money using specific banking procedures, and transfers can be completed as quickly (Interac e-transfers typically arrive within 30 minutes), depending on the bank. These transfers are usually free to make through participating Canadian banks, but account transaction fees may apply.
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Cheques – You might think that cheques are dated and hardly ever used, but they do still have a purpose in the financial world, and transferring money to a bank account is one of them. You can write a cheque from one bank account and deposit it into another, even using your mobile device. However, it can take a few days or even up a week for the funds to transfer. That said, you can also do this using a cashier’s or certified check, which will typically have the funds available within the day; however, there is a cost associated with having a certified cheque issued.
Direct Deposit – This money transferring method involves electronically transferring money to a checking or savings account. This is typically how employees are paid from their employers. Funds are directly deposited into your bank account in place of traditional paycheques. Some banks may charge monthly fees for direct deposit, but most don’t. However, individual deposit fees may be incurred which can range from $1.50 to $1.90 per deposit.
Information You Need To Transfer Money To A Bank Account
The information needed to complete a transfer of funds will depend on the method that you are using. That said, there are certain pieces of info that will be involved in all transfers, including the amount of money you are transferring and whether or not the account where the money is coming out of has sufficient funds to complete the transaction.
Other pieces of information that may be needed include:
- The account and routing numbers for both banks involved. This is particularly applicable to transfers made using direct deposit or cheque.
- The date the payment should be made.
- The name of the person you’re paying.
- The name and address of the bank that the funds are being sent to.
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How Much Money Can I Transfer To A Bank Account?
The amount of money that can be transferred will usually depend on the method of transfer. With PayPal, for instance, there’s no limit on the total amount being transferred if your account is verified (if it’s not verified, there will be a limit). Interac e-transfers typically allow up to $10,000 to be transferred in a single transfer, but much more in a seven-day or 30-day period (depending on the bank).
Certain transfer amounts may trigger alerts if they are over a certain amount, though this depends on your financial institution.
What If I Want To Transfer Money Outside Of Canada?
If you need to move money across international borders, you can do so using almost all of the methods mentioned above. However, wire transfers or international money transfer services, for example, Western Union or MoneyGram, maybe your best options.
Money Transfer Mistakes To Avoid
While sending money to other bank accounts is often necessary, there are certain things that you should avoid doing, including the following:
- Sending to the wrong account
- Sending the wrong amount
- Not making sure there is enough money in the source account
- Trying to cancel a transfer when it’s too late
Before you transfer money from one account to another, make sure that all information is accurate and up-to-date. Also, ensure that there are enough funds in the source account in order to avoid overdraft fees. And be certain that the transfer should be made, as cancelling a transfer may be impossible if you wait too long.
Final Thoughts
Sending money to another person or business is often necessary, but there are many convenient ways to make these transfers without having to do so in person. Do your homework on the various methods of money transferring before choosing the one that works best for you.
