How to transfer money from one bank to another

How people handle their money has changed a lot in recent years. Transferring money between accounts used to require filling out transfer slips, writing checks to yourself, or having painfully long conversations with bank tellers. On the plus side, there were often lollipops at the teller window. But the joys of a sweet treat don’t always outweigh the pain of driving to, and waiting in line at, the bank.

Thanks to online tools and mobile banking, the process of moving money between banks has gotten a lot simpler. Understanding how to use these tools helps you save time and manage your money better (even if they don’t come with candy). 

If you need to move your funds, Spruce has got your back with some essential details on how to transfer money from one bank to another. We’ve also got a suite of other handy features—like savings with high-yield interest and a budget tracker—to help you stay on top of your financial goals.

Spruce fintech platform is built by H&R Block, which is not a bank. Bank products by Pathward®, N.A., Member FDIC.

How do I transfer money from one bank to another? Learn how in 5 easy steps

These days, transferring money between different banks is a relatively quick and simple task. You can usually do it online with a computer or on a mobile device.  

While the process will be different bank to bank, here are a few general steps:  

1. Log into your bank’s website, or pull up your account on a mobile app.
2. Select the account from which you’d like to transfer money, such as a checking account or savings account.
3. Click on the transfer feature. You may be given the option to transfer funds internally between another checking or savings account at the same bank. Instead, you’ll want to select the option to transfer money to/from an external account.
4. Next, you’ll need to link the external account if you haven’t already. The bank’s transfer feature will prompt you to enter the external bank’s routing number and the account number for the account to which you want to send money. You can find these numbers through that bank’s online portal or app, on your bank statement, or on a paper check—if you still roll that way. Make sure that you enter these figures correctly. You wouldn’t want to accidentally send money to someone else—that mistake isn’t always easy to undo. (Note: Some banks may use third-party tools to make this step easier.)
5. Once the accounts are linked, enter the amount you’d like to move and make the transfer. Keep in mind that limits on transfer amounts and frequencies will vary.

In most cases: The first time you make a transfer, your bank may ask you to verify that you are the owner of the account you are sending money to. For example, you might have to enter log-in information for that account, which the bank will verify electronically. There may be a third-party verification process. Or the bank might make a small deposit in the account—to the tune of a few cents—and ask you to confirm the amounts.  

Transfers between external accounts may take a couple days, and a longer verification process could slow things down a bit the first time around.  

Transferring money from one bank to another instantly

If you’re interested in how to transfer money from one bank to another instantly, you may consider using peer-to-peer apps or a mobile payment service offered by many banks. They allow the transfer of money between bank accounts.  

It’s important to note that these apps and services can all have their own transfer amount limits, fees, restrictions, and risks. For example, one risk could be the inability to reverse transfers to the wrong person.  

Another option for the swift movement of funds is a wire transfer. They are often used when moving large sums of money. You can set up wire transfers online, and they’re quick—typically taking less than 24 hours. But sending or receiving funds with a wire transfer tends to come with hefty fees.  

Can you transfer money between bank accounts internationally while outside the United States?

Standard bank-to-bank transfers (ACH) are limited to U.S. financial institutions, so international transfers typically must be done through other methods such as wire transfers or global payment networks. 

Considerations for money protection and saving goals when transferring money

As you move money around, there are several considerations to be aware of.  

• Account minimums: First, be mindful of whether the bank account you’re taking money from requires an account balance minimum. If so, some banks will penalize you if you drop below it. So be sure to maintain that minimum balance to avoid fees.
• FDIC insurance: Before moving your funds, it’s worth checking whether the account you’re moving money into has any kind of protection, like FDIC insurance.
• Saving: Consider how the account you are sending money to will help you save. Does it offer a high-yield interest rate or other savings tools? Traditional savings accounts may offer low interest rates or none at all. And checking accounts typically don’t pay interest.

Managing your money: How Spruce can help

Understanding how to transfer money online is an important tool in your money management toolkit. With Spruce, you can expand your money skills with other tools and take advantage of valuable features—all without minimum balance requirements, monthly fees, or sign-up fees.  

Learn more about how Spruce can help:  

• Spruce’s budgeting tool helps you track your money effectively by categorizing your spending and setting up watchlists for certain categories.
• Spruce helps you take control of your savings by allowing you to set automated saving goals that help you put money away for an emergency fund or other things that are important to you.
• Spruce users can also make their money go further by earning 3.50% APY^{Disclaimer number12. Go to disclaimer for more details.} in a high-yield savings account.

Lastly, your accounts are FDIC-insured up to $250,000 through Pathward®, N.A., Member FDIC.*

How long does it take for funds to transfer from my Spruce to another account?

Transfers from Spruce to another account generally follow standard bank transfer (ACH) timelines, which typically take one to three business days to complete, depending on processing times, timing of the transfer, and weekends or holidays.  

Open an account with Spruce

Spruce has got you covered when it comes to the information and tools you need to take control of your finances.  

Get started with Spruce today!

*Funds are insured by the FDIC on a pass-through basis, subject to applicable limitations, restrictions, and requirements for such FDIC pass-through insurance, when the funds are received in your account. FDIC insurance only protects when an FDIC-insured institution fails. Spruce and H&R Block are not banks or FDIC-insured institutions, but Pathward® N.A. is an FDIC-insured depository institution.

This information is provided for general educational purposes only. It is not intended as specific financial planning advice as everyone’s financial situation is different.