The three ways to move money between banks
You can move money from one bank to another in three main ways: an ACH transfer (the slowest and cheapest), a wire transfer (the fastest and most expensive), or an external transfer through your bank's app or website (which uses ACH behind the scenes). Which one you use depends on how fast you need the money to arrive and how much you want to pay in fees.
All three methods require the same basic information: the name on the receiving account, the account number, and the routing number of the receiving bank. The routing number is a nine-digit code that identifies which bank holds the account. You can find it on a check, by calling the receiving bank, or by searching online for "[bank name] routing number".
The receiving bank does not need to be the same bank as yours. You can send money to any U.S. bank account as long as you have the correct account and routing numbers.
Key Takeaways
- ACH transfers are free or very cheap but take three to five business days, while wire transfers arrive the same day or next business day but cost $15 to $50.
- You can start a transfer through your bank's website, app, or by calling the bank, and you will need the receiving account number and the receiving bank's routing number.
- External transfers through your bank's app are the easiest method for most people and use ACH, so they are free but slower than wire transfers.
- Once you send a wire transfer, you cannot cancel it, so double-check the account number and routing number before you confirm.
- Some banks limit how much you can transfer in a single day or how many transfers you can make in a month.
ACH transfers: free but slower
An ACH transfer (Automated Clearing House) is the most common way to move money between banks. It is free or costs only a few dollars, but it takes three to five business days for the money to arrive. Banks batch ACH transfers together and process them in groups, which is why they are slower than other methods.
You can start an ACH transfer through your bank's website or app by clicking a button like "Send Money" or "External Transfer". You will enter the receiving bank's name, the account number, the routing number, and the amount. Some banks ask you to verify the receiving account by making two small test deposits first — the receiving bank will send you two amounts under $1, and you enter those amounts to prove you own the account.
ACH transfers work best when you are not in a hurry. If you are paying a bill that is due in a week, an ACH transfer will arrive in time. If you need the money tomorrow, use a wire transfer instead.
Wire transfers: fast but expensive and final
A wire transfer moves money the same day or the next business day, depending on what time you send it and whether the receiving bank processes it when ready. Wire transfers cost between $15 and $50, depending on your bank. Because wire transfers are fast and hard to reverse, banks charge more for them.
To send a wire transfer, call your bank or use your bank's app or website. You will need to provide the receiving account number, the receiving bank's routing number, and the receiving bank's name and address. Some banks ask for the name of the person or business receiving the money as well.
Once you send a wire transfer, you cannot cancel it. If you enter the wrong account number, the money goes to the wrong person, and getting it back is difficult and slow. Always double-check the account number and routing number before you confirm a wire transfer. If you are sending money to someone you do not know well, consider using an ACH transfer first to test the account.
External transfers through your bank's app
Most banks now let you add another bank account to your app and transfer money with a few taps. This is called an external transfer, and it uses ACH behind the scenes, so it is free and takes three to five business days. It is the easiest method for most people because you do not have to look up routing numbers or call the bank.
To set up an external transfer, open your bank's app, find the "Send Money" or "Transfer" section, and choose "Add External Account" or similar. Enter the receiving bank's name, the account number, and the routing number. Your bank may ask you to verify the account by confirming two small test deposits, or it may verify the account when ready using a service called Plaid.
Once the account is added, you can transfer money to it anytime without entering the information again. This makes external transfers the fastest method to set up if you plan to send money to the same account more than once.
What information you need before you start
Before you transfer money, gather this information about the receiving account:
- The name on the receiving account (must match the account holder's legal name)
- The account number of the receiving account
- The routing number of the receiving bank
- The name and address of the receiving bank (required for wire transfers, optional for ACH)
If you are sending money to someone else, ask them for this information directly. Do not guess or use information from an old check or email. If the account number or routing number is wrong, the money will go to the wrong account, and you will have to contact your bank to try to recover it.
You can find a bank's routing number by searching "[bank name] routing number" online, by calling the bank, or by looking at a check from that bank. The routing number is printed at the bottom left of the check.
Limits on how much and how often you can transfer
Your bank may limit how much money you can transfer in a single day or how many transfers you can make in a month. These limits vary by bank and by account type. Some banks allow unlimited transfers, while others limit you to a few transfers per month or a certain dollar amount per day.
If you hit a limit, you can usually call your bank and ask them to increase it temporarily or permanently. New accounts sometimes have lower limits than established accounts. If you are trying to transfer a large amount of money, call your bank first to make sure the transfer will go through.
When a transfer fails or takes longer than expected
Most transfers arrive on time, but sometimes they are delayed or rejected. Common reasons include a wrong account number, a mismatch between the account name and the account number, or a bank system outage. If your transfer does not arrive within the expected time, contact your bank and provide the confirmation number from the transfer.
Your bank can tell you whether the money was sent, whether it was rejected by the receiving bank, or whether it is still in progress. If the money was sent but rejected, it will be returned to your account within a few business days. If the money was sent to the wrong account, your bank can contact the receiving bank and ask them to return it, but this process can take weeks.
Frequently Asked Questions
Can I transfer money to a bank account at a different bank?
Yes. You can transfer money to any U.S. bank account as long as you have the correct account number and routing number. The receiving bank does not have to be the same bank as yours.
How long does a bank-to-bank transfer take?
ACH transfers and external transfers take three to five business days. Wire transfers arrive the same day or the next business day, depending on what time you send them and whether the receiving bank processes them when ready. Weekends and holidays do not count as business days.
Is there a fee for transferring money between banks?
ACH transfers and external transfers are free at most banks. Wire transfers cost $15 to $50, depending on your bank. Some banks charge a fee to receive a wire transfer as well, though this is less common.
What happens if I enter the wrong account number?
If you enter a wrong account number, the money will go to a different account. Your bank can contact the receiving bank and ask them to return the money, but this process can take weeks. Always double-check the account number and routing number before you confirm a transfer.
Can I cancel a transfer after I send it?
You can usually cancel an ACH transfer within a few hours of sending it, but wire transfers cannot be canceled once they are sent. Contact your bank when ready if you need to cancel a transfer. The sooner you contact them, the better your chances of stopping it.