It is a necessity for most people to transfer money from one bank account to another. For this reason, it is important to understand how to transfer money to someone else’s bank account. Before you transfer cash, there are a number of requirements that you must fulfill. However, you should not be scared as the process itself is quite easy. Therefore, without much ado, let’s get right into it, shall we?
Information You Need to Transfer Money
When it comes to transferring money, there is some information that you need in order for the transaction to be successful. Below is the information that you need to make the transfer a success.
1. The Name of The Bank
If you are transferring money to another bank, you need to know the name of the bank your recipient wants the money to be sent to. This information is quite easy to get since all you have to do is ask the person receiving the cash the name of their bank.
2. The Type of Account
- Is it a saving or a cashing account? : Find out from the recipient if their account is a saving or a checking account. Finding out the type of account is pretty easy as all you will have to do is ask the recipient.
- Is it a personal or a business account? : It is important to find out if the account is business or person because there are different guidelines on both the procedure and the fees applied to transfer cash to either of these accounts.
3. The Routing Number
The routing number is another critical piece of information that you should find out from the recipient. It is impossible to send cash to another bank if you do not have the routing number. The routing number ensures that the money you send goes to the intended person’s account and bank. It is possible for a single bank to have multiple routing numbers so it is essential that you confirm that the details are accurate.
4. The Account Number
The final piece of information that you need in order to transfer money successfully to a bank is the account number. It is impossible to transfer cash into another bank if you do not have the recipient’s account number. An account number identifies your individual account in a bank. It is usually 8 to 12 digits long and if you are not sure about your account number, you can always ask the bank to give it to you. You can also find it in your statement or check. Note also that even if you have more than one account in the same bank, each account will have its own account number.
So How Do You Find Your Account and Routing Number?
It is possible that the person to whom you are transferring the cash to has no idea what their routing number and bank account numbers are, fret not for it is easy to find out.
There are several ways of finding the routing and account number of a particular bank account:
- Online : The first way to find out this information is online. Simply log into your bank’s website and select the “Accounts Details” options and you will find your routing and account number there. Please note that you might be required to enter your PIN to access this information.
- Check : As earlier stated, you can get your routing and account number from your check. The numbers are usually found at the bottom of the check. The first set of numbers is the routing number while the second set is the account number.
- Bank Statements : Another place that you can find your account number is the bank statement. Usually, the account number is printed on your statement and you can either use a physical statement or an online statement to get the account number.
Transfer Money Someone Else’s Bank Account Within The Same Bank
Since banks are catching up with technology and embracing it more, it is now easier than ever to transfer money to someone else’s bank account within the same bank. The best thing is that the same bank transfers happen internally and the whole operation is conducted on the bank’s internal systems which makes the process efficient and fast.
Another good thing about money transfers within the same bank is that they are also free. The transfer is usually completed within a day but the amount will be debited from your account and credited to the recipient’s account immediately. However, the recipient can only withdraw the cash after the one-day waiting period.
Here are other ways to make a transfer within the same bank which include:
- A check
- Mobile banking app
- By using third-party applications
- You can initiate a bank transfer either through the phone, in person or online
As with transfer to another bank, you will need
- The recipient’s name
- Their account number
- The transfer amount
Transfer Money Someone Else’s Bank Account to Other Banks
When you want to transfer money to another bank someone else’s account, there is nothing to worry about since the transfer process is also pretty straightforward. However, the process differs a bit from the process of transferring cash into the same banks. For starters, you would have to wait for about 5 days for the recipient to access their cash although the transfer process is initiated immediately. Unlike the same bank transfers, external bank transfers usually have a fee associated with the transfer.
The main reason why the transfer takes longer is that there are different servers involved in the process and therefore extra security is required to ensure that the transaction goes smoothly.
To complete the transfer, most of the banks use what is known as the ACH or the Automatic Clearing House network. The ACH is a network that allows banks and other financial institutions to transfer cash from one account to another securely and efficiently.
Below is an explanation of how the process of transferring cash from one bank account to other works.
Step One: Initiation
Once you send cash to another bank account, you initiate a transaction either through direct deposit or direct payment with your bank. Your bank then makes an entry on the ACH network with your request to transfer the cash.
Step Two: Bundling
Various requests made to the bank by people who have initiated the transfer request are bundled together. These bundle requests are sent to the ACH operator at certain intervals throughout the day.
Step Three: Sorting
The third step in the process is whereby the ACH requests are revived by the operators. The Federal Reserve or the Clearinghouse are known as ACH operators because they act on the requests received from the network. They sort and categorize the requests into three categories namely:
After the ACH operators classify the requests, they submit them to the receiving bank.
Step Four: Completion
Once the receiving bank receives the request, it acts upon them and credits the recipient’s account with the cash that was sent.
Although the process might look complicated, once you initiate the transaction by sending the cash, the bank takes care of the process and all you have to do is inform the recipient to be patient and wait for their cash.
- Here are other methods you can use to transfer cash to another bank
- Through check
- You can initiate a wire or bank transfer online, through a phone call or personally by visiting your bank
- You can use a mobile banking app
- Yes, you might choose to the user a third-party mobile payment app
- You can use direct deposit
- Here is the information that you will need in order to make the transaction successful:
- The recipient’s name
- Their account number
- The recipient’s routing number
- The transfer amount
Transfer Money from Your Bank Account To Someone Else’s Bank Account
a) Transfer Wise (Domestic or International)
The genesis of Transfer Wise is a peer-to-peer company where it enabled people to receive money from wherever part of the world. The company employed some cutting-edge technology that connected various bank accounts. The best thing about the platform is that it eliminated the need to use international money transfer bank services that used to charge hefty fees for the service rendered.
In the beginning, the company was only offering international money transfers but has since evolved and it also offers local money transfers. It also offers an alternative to local banking with programs like the borderless currency account.
Signing up for the borderless currency account is free and does not have any monthly fees. The only charges that you will encounter are fair and you are charged for switching between currencies and sending cash within or without the United States.
In order to set up the account, you will have to undergo a verification process but once you are done with that you are set to use your borderless account. The good thing with this account is that you can have cash in various denominations; you are also able to send cash from your account either in the US or anywhere in the world.
Another great thing with Transfer Wise is that you can get a debit card that supports different currencies and you can use it to make purchases all over the world.
|Pros of Transfer Wise||Cons of Transfer Wise|
|It is very simple to use the platform once you are verified and your account is up and running.||When you signup on the platform, you have to undergo a verification process which might take up to five days for your account to be verified.|
|You can send money anywhere just with a click of a button when you have cash in your account.||It is more expensive to use a debit or credit card to make payments as compared to direct bank deposits.|
|The transfer is also very fast as the recipient usually has to wait overnight for them to receive their cash.|
|The platform has both a PC version and a mobile version which makes it very versatile. It supports both iOS and Android phones.|
|The recipient is not required to do anything in order to receive the cash.|
|If you are doing some shopping, it is possible to pay using your Transfer Wise debit card if the amount is not very high.|
|The platform makes It is easy and fast to send money both lo9cally and internationally.|
b) Wire (Domestic or International)
Although the term wire might sound a bit frightening, it is actually easier than you might think.
If you are to wire cash to a person in the United States., all you need is the recipient’s name, account number, wire routing number, and address. However, for this option, you have to wire the cash in person. The best thing about this option though is that the recipient receives the cash the very same day provided you send the cash before your bank’s cut-off time.
However, since most banks require that you wire cash in person, that might be an inconvenience, especially If you have a very tight schedule. Another issue with wire transfers is that they are expensive. The fees range from $15 to $35 per wire transfer. To mitigate this expense, you better use the method if you are transferring a large sum of money.
It is even more expensive to make international wire transfers than local transfers. First of all, your bank will charge an upfront fee which can be anywhere from $35 to $60. Secondly, the banks offer poor exchange rates and the receiving bank will also charge a fee for the transfer. As you can see, therefore, international wire transfers are not a cheap affair.
Although local wire transfers are fast, the same cannot be said of international wire transfers as it might take anywhere from 1 to 5 working days for the recipient to receive their cash. The time it takes depends on the recipient’s country.
|Pros of Wire Transfer||Cons of Wire Transfer|
|If you are doing a domestic wire transfer, then it is possible for the recipient to receive the cash very fast. They might even receive it within the hour.||More often than not you have to make the wire transfer in person|
|All the recipient needs to do is to collect the money; there is no requirement from their end.||It is an expensive way of sending cash|
|Your recipient may have to wait for up to 5 days before they receive the cash.|
c) Bill Pay (US Domestic Only)
As a result of the high cost of wires, banks have come up with other cheaper methods of sending cash. This method which is commonly known as Bill Pay or Online payments/ transfers is usually used locally.
The main differences between this method and the wire method are that you can send cash online. All you need to do is log into your bank account online and initiate the transfer.
Below is the information that you will need from the recipient:
- Their routing number
- Their account number
Here are a few things that you need to know about this method though.
Some banks just write a cheque to the recipient and send it to them through the mail. This might be an issue if the recipient does not have time to get the check and deposit it into their bank. It is also a tedious process for the recipient. Therefore, make sure that you inquire from your bank which method they use to deliver cash to your recipient once you send it through Bill Pay.
The method is also not the fastest it might take from 1 to 7 days for the recipient to get the cash.
One of the best banks to use this method is the Bank of America as they can deposit the cash into the recipient’s bank account the very next day or after 3 business days.
|It is a hassle-free method for you can conduct the whole process online through your bank’s online portal.||You need to get the recipient’s bank details beforehand|
|It Is low cost or free of charge||It is only used for local transfers|
|It is possible that the recipient will receive the cash as a check and have to deposit it.|
Use A Service That Your Recipient May Need to Sign Up and Get the Money into Their Bank Account
The second option of sending money is where the recipient will have to sign up for a particular service in order to receive the cash into their bank account.
For this method, the recipient needs to sign up for the service after receiving an email notification from the service provider.
Option 1 (Bank-To-Service-To-Bank Option): Recipient Fills in Their Details
When it comes to sending cash using this option, all you will need is the phone number and email address of the recipient.
How most of these service providers work is that they send a notification to the recipient once you send the cash. The recipients have to feed their routing number and account number on the service provider’s site.
Some of these service providers include:
- PopMoney – only works for US domestic transfers
- Zelle Money – only works for US domestic transfers
- Chase Quick pay– only works for US domestic transfers
- Wells Fargo – only works for US domestic transfers
Option 2 (Bank-To-Service-To-Bank Option): Money will be deposited into the service and then recipient withdraw the money to their own account
In order for this option to work, the recipient should already have registered with the service provider. You can only send them money if they are registered with the service provider.
Once you send the cash, the recipient will need to follow some steps to withdraw the cash.
Some of these service providers include:
- Venmo- only works for US domestic transfers
- Facebook Messenger Payments – only works for US domestic transfers
- Square cash – only works for US domestic transfers
- Snapchat Snapcash -only works for US domestic transfers
- PayPal – available both domestically and internationally
|It is possible that you are already using the service||The recipient may need to sign up for the service|
|It is easy to send the cash since it is all online||It might take time to reach your recipient|
Alternative Ways to Transfer Money To Someone Else’s Bank Account
If you do not use any of the above methods, then you can use the older ways of transferring money.
This is one of the oldest modes of moving money from one person to another. The good news is that it is still applicable today and you might transfer money to the recipient in person. You can also physically deposit the money into the recipient’s bank account.
However, to deposit money into someone’s account you need their account number and full name.
Transfer Money Through Check
The second way that you can transfer cash to a recipient is through a check. You can hand the recipient the check-in person or mail it to them. Recipient can load this check into recipient prepaid card or he / she can withdraw the money from the check-cashing store.
Transfer Money Through Money Order
The third option is sending or giving the recipient a Money Order. This option is more secure than mailing cash because a money order is easy to cancel should it get lost on the way.
You can buy Money Order from a Walmart store, the Post Office, or any Western Union branch. When you buy the Money Order, fill in the required information, sign it, and mail it to the recipient or deliver it in person.
Which Transfer Method Should You Use?
The transfer method you choose to use depends on a number of factors such as time, cost, and transfer limits.
- Time : The urgency will determine the method that you choose to send the cash. Banks are a bit slow but are cheaper while some instant apps are very fast but more expensive
- Cost : Another consideration is the cost of the transfer method. Wire transfers are very expensive as compared to other options. Therefore, if you do not want to incur more expenses, choose a cheaper method.
- Transfer Limits : Some methods allow you to send huge amounts while others are not as huge. Therefore, the amount of cash you want to send will determine the method that you choose to use.
Sending money from one bank to another or even in the same bank might seem like a complicated process. However, the good news is that it is a simple process. Furthermore, there are more than one way to go about the issue. Some transfer methods allow you to transfer money internationally while for others you can only use them for local transfers. Before you settle on any method, it is important to know how much you can send using the method, how much it will cost you, and the time it will take the recipient to receive the cash.
We believe that you are now well informed on how to transfer money to someone else’s bank account.