How To Transfer Money From One Bank Account To Another

Whether you’re moving money between your own accounts, sending funds to another person, or paying a business expense, there are several ways to transfer money from one bank account to another.

This guide explains the most common bank transfer methods, how they work, and when to use each one.

How To Make A Bank Transfer: Top 5 Methods

There are several ways to transfer money between bank accounts, from traditional checks to digital payment apps.

The best option depends on how much money you’re sending, how quickly the transfer needs to arrive, and whether you want to avoid fees.

1. ACH Transfers

• Speed: Typically 1-3 business days
• Cost: Often free or low-cost
• Transfer Limit:  Varies by bank and account type

ACH transfers — also called electronic bank transfers — move money between bank accounts through the Automated Clearing House network.

ACH payments are commonly used for:

• Bill payments
• Payroll direct deposits
• Recurring business payments
• Transfers between your own bank accounts

ACH transfers are generally inexpensive, secure, and widely supported by US banks. However, they typically only work for domestic US transfers and are not processed on weekends or federal holidays.

ACH transfers are best for routine transfers where speed is less important than low cost.

2. Wire Transfers

• Speed: Often same day for domestic transfers; typically 1–5 business days for international transfers
• Cost: Usually more expensive than ACH transfers
• Transfer Limit: Generally much higher than ACH transfer limits

Wire transfers are electronic bank-to-bank transfers designed for moving money quickly, especially for large transactions or international payments.

Wire transfers are commonly used for:

• Large business purchases
• Real estate transactions
• International payments
• Time-sensitive transfers

Compared to ACH transfers, wire transfers are typically faster and support much larger transfer amounts. They’re also widely used for international money transfers.

However, wire transfers usually come with higher fees, especially for international transfers that may include currency conversion and intermediary bank fees. Unlike ACH transfers, wire transfers are also typically difficult or impossible to reverse once processed, so it’s important to verify recipient information carefully before sending funds.

Wire transfers are best for large or urgent transfers where speed matters more than cost.

3. P2P Apps

• Speed: Usually 1–3 business days for free transfers; instant transfers may be available for a fee
• Cost: Standard transfers are often free; instant transfers typically charge a percentage-based fee
• Transfer Limit: Generally lower than ACH and wire transfer limits

Peer-to-peer (P2P) payment apps let users quickly send money between bank accounts using mobile apps and digital wallets.

Popular P2P apps include:

• Venmo
• Cash App
• PayPal
• Zelle

P2P apps are commonly used for:

• Splitting bills
• Paying freelancers or vendors
• Sending money to friends or family
• Small business payments

These apps are convenient and often inexpensive, but transfer limits are typically lower than traditional bank transfers. Most P2P services also primarily support domestic US transfers.

Zelle works somewhat differently from other P2P apps because it connects directly through participating banks rather than using a separate digital wallet. Transfers are often processed quickly and may not include fees, though availability and transfer limits vary by bank.

Because many P2P payments are difficult to reverse once sent, it’s important to confirm recipient information carefully before transferring funds.

4. Money Orders

• Speed: Usually 1–2 business days
• Cost: Typically low-cost
• Transfer Limit:  Often capped at around $1,000 per money order

A money order is a prepaid paper payment that functions similarly to a check. Unlike personal checks, money orders are prepaid upfront, which guarantees the funds.

Money orders can typically be purchased at:

• Banks
• Post offices
• Grocery and convenience stores
• Check-cashing and financial service locations

Money orders are less commonly used for bank-to-bank transfers today, but they can still be useful when:

• The recipient does not have a bank account
• A guaranteed paper payment is needed
• You do not want to use cash or a personal check

Because money orders have relatively low transfer limits and require in-person purchase and deposit, they are generally less convenient than digital transfer methods.

5. Checks

• Speed: Typically 1–2 business days after deposit, though some checks may take longer to clear
• Cost: Usually inexpensive aside from the cost of check stock
• Transfer Limit: Generally limited only by available account funds

Paper checks can still be used to transfer money between your own bank accounts or to another person or business.

Checks remain useful because they:

• Create a paper trail
• Support large payment amounts
• Can often be deposited remotely through mobile banking apps

However, checks are slower and less convenient than most digital payment methods. Physical delivery may also be required if the recipient cannot use mobile deposit or online banking tools.

Be Aware Of Savings Account Withdrawal Limits

Although the Federal Reserve removed the federal six-withdrawal savings account limit in 2020, some banks still maintain their own transaction limits on savings accounts.

Depending on the bank, you may still face limits on:

• Withdrawals
• Transfers
• Certain outgoing transactions from savings accounts

If you plan to move money in and out of a savings account frequently, make sure to review your bank’s current savings account policies and transaction limits.

The Bottom Line On How To Make A Bank Transfer

There are more ways than ever to transfer money between bank accounts, from ACH transfers and wire transfers to checks and mobile payment apps.

The best transfer method depends on factors like:

• How quickly the money needs to arrive
• How much money you’re sending
• Whether fees are involved
• Whether the transfer is domestic or international

Understanding the pros, costs, and limitations of each transfer method can help you choose the right option for your personal or business banking needs.