The three ways to move money between banks

You can move money from one bank to another using a wire transfer, an ACH transfer, or by moving the account itself. Wire transfers move money the same day or next business day but cost $15 to $50. ACH transfers are free or cost $1 to $3, but take three to five business days. Moving the account means closing one and opening another, which takes a week or two and moves everything at once.

Which one you use depends on how fast you need the money, whether you want to keep both accounts open, and how much you are moving. A wire transfer makes sense if you need money urgently or are buying something today. An ACH transfer works if you have a few days and want to avoid fees. Moving the account itself is the right choice if you are switching banks entirely and want your paycheck and bills to follow you.

Key Takeaways

  • Wire transfers move money the same day or next business day but cost between $15 and $50 per transfer.
  • ACH transfers are free or low-cost and take three to five business days, making them the cheapest option for non-urgent moves.
  • You need the receiving bank's routing number and the receiving account number to start any transfer, whether wire or ACH.
  • Moving your account entirely means closing one bank and opening another, which takes one to two weeks and moves all your money at once.
  • Some banks charge a fee to close an account early, so check your account agreement before you switch.

Wire transfers: same-day or next-day movement

A wire transfer moves money directly from one bank to another through the Federal Reserve's wire network (for domestic transfers) or through SWIFT (for international transfers). Your sending bank pulls the money from your account, passes it to the receiving bank with your instructions, and the receiving bank deposits it into the target account. The whole process usually takes a few hours to one business day.

To send a wire, you need the receiving bank's routing number (a nine-digit code that identifies the bank), the receiving account number, and the account holder's name. You can initiate a wire at your bank's branch, through online banking, or by phone. Your bank will ask you to confirm the details before sending because wire transfers cannot be reversed once they leave your account.

Wire transfer fees vary by bank. Most banks charge $15 to $30 for a domestic wire and $40 to $50 for an international wire. Some banks waive the fee if you maintain a minimum balance or have a premium account. Ask your bank what it charges before you send.

ACH transfers: free or low-cost, but slower

An ACH transfer (Automated Clearing House) moves money through a batch system that processes transfers in groups at set times each day. Your bank collects your transfer request, batches it with thousands of others, and sends them all to the ACH network. The receiving bank gets the batch the next business day and deposits the money into the account. The whole process takes three to five business days from the time you initiate it.

ACH transfers are free at most banks, though some charge $1 to $3 per transfer. You initiate an ACH transfer through your bank's online portal or by calling the bank. You need the same information as a wire transfer: the receiving bank's routing number, the receiving account number, and the account holder's name. Unlike a wire, you can cancel an ACH transfer up until the day it is processed, though you should contact your bank when ready if you need to stop it.

ACH transfers work well for moving money between your own accounts at different banks, paying bills, or sending money to someone you trust. They are not suitable if you need the money today or tomorrow.

Moving your entire account to a new bank

If you are switching banks entirely, you can close your old account and open a new one, then move your money over. This is different from a single transfer because you are moving the account itself—your paycheck, your bills, and your debit card all move to the new bank.

Start by opening a new account at the bank you want to switch to. You will need a government ID, proof of address (a recent utility bill or lease), and your Social Security number. The new bank will give you a new account number and routing number. Then contact your employer's payroll department and any companies that pull money from your account (utilities, subscriptions, loan payments) and give them the new account details.

Once your paycheck and bills are set up at the new bank, you can close the old account. Before you close it, move any remaining balance to the new account using a wire or ACH transfer. Check your account agreement for any early closure fees—some banks charge $25 to $100 if you close within a certain period, usually three to six months. After you close the account, the old routing number and account number stop working, so make sure everything has moved before you do.

What information you need to provide

Whether you are sending a wire or an ACH transfer, you need four pieces of information about the receiving account: the receiving bank's name, the bank's routing number, the account number, and the account holder's name exactly as it appears on the account.

The routing number is a nine-digit code unique to each bank. You can find it on the bottom left of a check from that bank, on the bank's website, or by calling the bank directly. The account number is usually 10 to 12 digits and appears on checks and statements. The account holder's name must match the name on the account—if it does not, the transfer may be rejected or delayed.

Double-check all four pieces of information before you send the transfer. A wrong routing number or account number will send your money to the wrong place, and recovering it can take weeks or require the help of both banks.

Timing and when the money actually arrives

Wire transfers typically arrive the same business day if you send before your bank's cutoff time (usually 2 or 3 p.m.). If you send after the cutoff, the transfer goes out the next business day. Weekends and bank holidays add extra days—a wire sent on Friday afternoon may not arrive until Monday.

ACH transfers take three to five business days. The timeline starts when your bank processes the transfer, not when you initiate it. If you request an ACH transfer on a Friday, your bank may not process it until Monday, so the money could arrive Wednesday through Friday of the following week.

Some banks offer faster ACH transfers (sometimes called "next-day ACH"), which arrive the next business day. These are usually free or cost $1 to $2. Ask your bank whether it offers this option.

Fees and which option costs the least

ACH transfers are the cheapest option. Most banks charge nothing, and those that do charge $1 to $3 per transfer. If you are moving money regularly or in small amounts, ACH is almost always the right choice financially.

Wire transfers cost $15 to $50 per transfer depending on your bank and whether the transfer is domestic or international. If you need money urgently and cannot wait three to five days, a wire is worth the cost. If you can wait, an ACH transfer saves you money.

Closing and opening accounts to move your entire banking relationship usually has no direct cost, but some banks charge a fee to close an account early. Check your account agreement or call your bank to find out whether you will be charged. If you are switching because of poor service or high fees, the cost of closing may be worth it.

Frequently Asked Questions

Can I send money to someone else's account at a different bank?

Yes, using either a wire or ACH transfer. You need the account holder's name exactly as it appears on the account, their bank's routing number, and their account number. Wire transfers are faster but cost more; ACH transfers are free or cheap but take several days.

What happens if I give the wrong account number?

The transfer may be rejected if the account number does not match the account holder's name at that bank. If it goes through to the wrong account, contact your bank when ready. Your bank can attempt to recover the money, but this process takes time and is not always successful. The receiving bank must cooperate, and if the account holder withdraws the money, recovery becomes much harder.

Can I cancel a transfer after I send it?

Wire transfers cannot be cancelled once they leave your bank. ACH transfers can usually be cancelled up until the day they are processed, but you must contact your bank when ready. Call or visit your bank in person rather than using email, because time matters.

Do I need to tell my bank I am moving money to another bank?

No. You can move money between your own accounts at different banks without notifying anyone. If you are closing an account, your bank may ask why, but you are not required to explain. If you are switching banks entirely, you do need to update your employer and any companies that pull money from your account.

Which is faster, a wire or ACH transfer?

A wire transfer is faster. Wires typically arrive the same business day or next business day. ACH transfers take three to five business days. Some banks offer next-day ACH, which splits the difference. If you need money today, a wire is your only option.