The three ways to move money between banks

You have three main routes: ACH transfer (the slowest and cheapest), wire transfer (the fastest and most expensive), or real-time payment (newer, faster than ACH, cheaper than wire). Which one you use depends on how fast you need the money to arrive and how much you are willing to pay.

ACH is what most people use for routine transfers between their own accounts or to someone else's bank account. It moves through the Federal Reserve's automated clearing house and takes one to three business days. Wire transfer is what you use when you need money to arrive the same day or the next day, or when you are sending a large amount to someone you do not know well. Real-time payments are still rolling out across US banks, but when available they move money in seconds to minutes and cost less than wire.

The bank you are sending from controls which methods are available to you. Some banks offer all three. Some smaller banks or credit unions may only offer ACH and wire. Check your bank's website or call to see what options exist for the specific transfer you want to make.

Key Takeaways

  • ACH transfers take one to three business days, cost nothing or a few dollars, and work for routine transfers between banks.
  • Wire transfers arrive the same day or next business day but cost $15 to $50 and are harder to reverse if something goes wrong.
  • Real-time payments (when your bank offers them) move money in seconds to minutes for a cost between ACH and wire.
  • You need the receiving account number and routing number for ACH and wire; real-time payments often use just a phone number or email.
  • Business days matter: a transfer you start on Friday afternoon may not move until Monday, even if your bank says it is "when ready".

How ACH transfers work and why they take time

ACH stands for Automated Clearing House. When you send an ACH transfer, your bank does not send the money directly to the other bank. Instead, it batches your transfer with thousands of others and sends them all to the Federal Reserve, which sorts them and distributes them to the receiving banks. This batching process is why ACH takes time.

Your bank typically processes ACH transfers in batches at set times during the day — often in the morning, midday, and evening. If you start a transfer at 2 p.m. on a Tuesday, it might go out in the next batch at 3 p.m. or might wait until the evening batch. The receiving bank then has to receive it from the Federal Reserve, verify the account number, and post it to the account. The whole cycle usually takes one business day for the money to leave your account and one to two more business days for it to show up on the other side.

Weekends and federal holidays break the chain. A transfer you start on Friday at 4 p.m. will not leave your bank until Monday morning at the earliest. The receiving bank may not process it until Tuesday or Wednesday. This is why banks say ACH takes "one to three business days" — the exact timing depends on when you send it and which banks are involved.

Wire transfers: same-day or next-day arrival

A wire transfer moves money directly from one bank to another without going through the Federal Reserve's batch system. Your bank sends the receiving bank's routing number, the account number, the amount, and your information. The receiving bank verifies the account exists and deposits the money. This can happen the same day if you send it before your bank's wire cutoff time, which is usually 2 p.m. or 3 p.m. on business days.

Wire transfers cost $15 to $50 depending on the bank and whether the receiving bank is domestic or international. Some banks charge less for outgoing wires than incoming ones. A few banks offer one free wire per month or waive the fee if you maintain a certain balance, so check your account terms.

The main drawback is that wires are nearly impossible to reverse. Once the receiving bank accepts the wire, the money is gone from your account and the receiving bank owns it. If you wire money to the wrong account by mistake, you have to contact the receiving bank and ask them to send it back — they are not required to do so. This is why wire fraud is common: criminals trick people into wiring money to the wrong account, and the money disappears. Only use wire transfer when you trust the receiving account or when the receiving bank is your own account at another branch.

Real-time payments: the middle ground

Real-time payments are a newer system that some banks now offer through networks like the RTP network (operated by The Clearing House) or FedNow (operated by the Federal Reserve). When you send a real-time payment, the money moves in seconds to a few minutes, similar to wire speed, but the cost is much lower — usually $0 to $5.

Real-time payments also use different identifiers than traditional transfers. Instead of needing a routing number and account number, you can often send money using just a phone number or email address registered with the receiving bank. This makes the process simpler and reduces the chance of sending money to the wrong account by accident.

The catch is that real-time payments are not yet available at all banks, and not all banks that offer them have connected to all networks. Check with your bank whether they offer real-time payments and which networks they use. If both your bank and the receiving bank are on the same network, you can use real-time payment. If not, you fall back to ACH or wire.

What information you need to provide

For ACH and wire transfers, you need the receiving account number and the receiving bank's routing number. The routing number is a nine-digit code that identifies the bank or credit union. You can find it on a check from that bank (it is the first nine digits at the bottom left), on the bank's website, or by calling the bank directly.

You also need to know whether the account is a checking account or savings account, and the name on the account should match the name you provide. If the names do not match exactly, the receiving bank may reject the transfer or hold it for review.

For real-time payments, you typically need the receiving person's phone number or email address, depending on which network your bank uses. Some banks also let you send real-time payments using an account number and routing number, just like ACH.

Timing: when the money actually leaves and arrives

The time a transfer takes depends on three things: when you send it, which method you use, and whether it is a business day.

If you send an ACH transfer on a Tuesday at 10 a.m., your bank processes it that day and sends it to the Federal Reserve. The receiving bank gets it Wednesday and posts it Wednesday or Thursday. If you send the same transfer on Friday at 4 p.m., your bank may not process it until Monday, the Federal Reserve processes it Monday, and the receiving bank posts it Tuesday or Wednesday.

Wire transfers move faster but still respect business day cutoffs. If you send a wire on Tuesday at 1 p.m., it can arrive the same day or Wednesday morning. If you send it Friday at 4 p.m., it will not move until Monday and will arrive Monday or Tuesday.

Real-time payments move in seconds or minutes on any day, including weekends and holidays, as long as both banks are connected to the same network and both are online. This is the main advantage over ACH and wire.

Fees and limits

ACH transfers are usually free or cost $0 to $3. Some banks charge for outgoing transfers, some for incoming transfers, and some charge nothing. Check your account agreement or call your bank.

Wire transfers cost $15 to $50 for domestic transfers (within the US) and $25 to $75 for international transfers. Some banks charge different amounts depending on whether you are sending or receiving.

Real-time payments usually cost $0 to $5, though some banks charge nothing for transfers under a certain amount.

Banks also set daily and monthly limits on how much you can transfer. A typical limit for ACH is $10,000 to $25,000 per day, but this varies by bank and account type. Wire transfers often have higher limits or no limit. Real-time payments may have lower limits because they are newer. Check your bank's website or call to find out what limits explore to your account.

Frequently Asked Questions

Can I transfer money between my own accounts at different banks?

Yes. Use ACH or real-time payment if available — both work for your own accounts. You do not need to use wire transfer unless you want the money to arrive the same day. Many banks let you link external accounts and transfer between them through their app or website.

What happens if I give the wrong account number?

For ACH, the receiving bank checks the account number against the name you provided. If they do not match, the bank rejects the transfer and the money comes back to you, usually within one to three business days. For wire, the receiving bank may accept the transfer if the account number is valid, even if the name is wrong. This is why wire fraud is a risk — always confirm the account number and name with the person before sending a wire.

Is there a limit to how much I can transfer?

Yes, your bank sets daily and monthly limits. ACH limits are typically $10,000 to $25,000 per day. Wire transfers often have higher limits or no limit. Real-time payments may have lower limits. Contact your bank to find out your specific limits or to request a higher limit.

Why does my bank say the transfer is "when ready" but it takes three days?

Banks sometimes use "when ready" to mean the transfer left your account when ready, not that it arrived at the other bank when ready. ACH transfers leave your account the same day but take one to three business days to arrive. Only wire and real-time payments actually arrive the same day or next day.

Can I cancel a transfer after I send it?

For ACH, you can usually cancel within a few hours of sending it, before your bank's processing batch goes out. For wire, you cannot cancel once it leaves your bank. For real-time payments, the money arrives so fast that cancellation is usually not possible. Always double-check the account number and amount before you send any transfer.