How to Transfer Money from One Bank to Another and 9 Best Ways of Money Transfer

How to transfer money from one bank to another

In this article, we can learn different types of methods of how to transfer money from one bank to another. If you want to transfer money from one bank to another bank, there are many options available, but while transferring money, two things should be considered mainly, these two things are the cost incurred while transferring money and the second is how long the funds will be transferred.

Important things to consider while transferring money-

1. Consider speed: Decide how quickly the money should reach the other bank.
2. Compare Fees: Sometimes sending large amounts of money quickly may require a wire transfer, but it may not be free.
3. Know the recipient’s account information: For some methods, you will need at least the recipient’s name, routing number, and account number. But

Once you’ve decided on your speed, price, and shipping options, you’re ready to transfer money.

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How to transfer money from one bank to another

1. Wire transfer

A wire transfer is the fastest way to transfer money electronically from one person to another. Wire transfers are faster and allow you to send more money than some other methods, but they can also be expensive.

2. Mobile Apps

Banks are not the only option for sending money. PayPal, MoneyGram, Western Union, Paytm, google pay and other third-party companies are also considered. A bank customer can transfer money through a mobile app sitting at home.

3. Email money transfer

Your bank’s app may offer a service like Zelle or Popmoney, which lets you send money electronically using someone else’s email address or cellphone number. Depending on the method chosen, the transfer may take a few seconds or a few days.

4. To transfer money by cheque-

The traditional way to transfer money between banks is by writing a check and depositing it at a bank branch, online, through a mobile app, or by mail. Funds can be transferred by using a cashier’s check.

5. NEFT (National Electronic Fund Transfer)

National Electronic Fund Transfer or NEFT is the easiest and most popular form of the bank to bank transfer.

To perform any NEFT transaction, you need only two important pieces of information — firstly, the account number and secondly, the IFSC code of the remittance account.

In NEFT, there is no limit on the amount that can be transferred. However, individual banks may set limits.

6. RTGS (Real Time Gross Settlement

Real Time Gross Settlement or RTGS is almost similar to NEFT but you can use it if you want to transfer more than 2. RTGS doesn’t have an upper limit for money transfer

RTGS money transfer is based on real-time. The person to whom the money is transferred gets 30 minutes for the bank to credit his/her account.

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7. IMPS (Immediate Payment Service)

Immediate Payment Service or IMP is an instant fund transfer service and can be used anytime. IMPS can be defined as NEFT+RTGS.

To avoid fraud complaints, the transaction limit is kept very low. For IMPS transfer, you only need to know the destination account holder’s IMPS ID (MMID) and his/her mobile number.

With IMPS, you can transfer money 24/7, but RTGS and NEFT can be done only during working hours on weekdays + only a few hours on Saturdays. Apart from NEFT, RTGS, and IMPS, you can also transfer your money through UPI and cheques.

8. UPI (Unified Payment Interface):

The UPI payment system is based on real-time, and it allows transactions on any smartphone.

Transferring money through UPI does not require any bank account details. Just a mobile number or name is enough and transactions can be done 24/7. UPI-enabled apps allow transfers of up to Rs 1 lakh.

9. External bank transfer-

External bank transfers allow you to transfer funds between banks or send funds to another person without visiting a branch or ATM.

An external transfer can be useful for transferring funds, for example, from a high-yield savings account at an online-only institution to a checking account at a brick-and-mortar bank. While having a checking account at a brick-and-mortar bank provides access to a branch—an important consideration for some consumers an online bank allows them to earn a higher return on savings than a traditional bank can offer.

Money can be transferred from a checking account to a bank or credit union that offers multiple savings accounts or buckets, allowing customers to set different savings goals.