How to Transfer Money from One Bank to Another

Key takeaways

• Popular transfer methods for moving money between banks include: wire transfers, ACH transfer, P2P platforms, online money transfer services, and traditional or mobile banking.

• The key factors to consider when transferring money between banks include: transfer fees, exchange rates, speed, security, transfer limits, and customer support.

• The best way to transfer money from one bank account to another depends on your specific needs, but online money transfer services like Xe often provide the best mix of speed, affordability, and security for a variety of money moving needs.

Whether you're managing personal finances, supporting family, or investing in property abroad, transferring money across borders is a key part of the expat experience. With so many options out there, it can feel a bit daunting to choose the right transfer method—until discovering Xe.

With Xe in your corner, money transfers are made easy. In this guide, we’ll explore the most effective ways to move your funds and give you the insight to make confident, informed choices. From security to efficiency, you’ll learn the best ways to ensure your money moves across borders as smoothly as you do.

The basics: Internal vs. external transfers

Let's get started by breaking down the differences between internal and external transfers.

• Internal transfers: Internal transfers involve moving money between different accounts within the same bank. Think of it like passing cash from your left pocket to your right pocket. You can most likely do this from your phone using your bank’s mobile app. 

• External transfers: External transfers involve moving money between banks. Think of it like sending a package across the country versus dropping it off at your neighbor’s doorstep. Sending external transfers is easy, especially with Xe, but there are some additional things to consider when choosing the best method to safely and securely transfer your funds.

Different methods to transfer money between banks

Mobile banking

If you’re doing basic transfers, like moving money between your accounts or sending money using member-to-member services, mobile banking is often your best option. However, transferring money to out-of-network banks or foreign financial institutions is often more expensive and time consuming than alternative money transfer platforms like Xe.

What to think about

1. Fees: While basic mobile transfers are often free, moving money outside of your bank or outside of the country often comes with higher fees and more expensive exchange rates.

2. Limits: Banks typically set caps on the amount of money you can transfer through online/mobile banking in a single transaction. There may also be daily or monthly limits on how much money you can send.

3. Time frame: Most online or mobile transfers are completed within 1-3 business days. If you need money to transfer instantly, it’s best to look for a faster method.

How to start a mobile banking transfer

1. Log into your bank's app or website

2. Navigate to the transfer section

3. Select "External Transfer" or similar option

4. Enter the recipient's bank details

5. Input the amount and confirm the transfer

Online money transfer services

Online services have transformed the landscape of international money transfers, providing a combination of speed, affordability, and convenience. Industry leading platforms like Xe feature easy-to-use interfaces and typically offer lower fees compared to traditional banks. These services are especially advantageous for those who frequently send money abroad or need to transfer larger amounts, making them a practical choice for modern financial transactions.

ACH transfers

ACH stands for Automated Clearing House, a U.S. financial network used for automatic payments and money transfers. ACH transactions offer a method to transfer money between bank accounts electronically, without using checks, cards, wires, or cash. These transactions are processed by the National Automated Clearing House Association (NACHA) in batches and cleared multiple times daily. Unlike instant transfers, ACH transactions may not always involve immediate fund movement; sometimes, they only send payment information.

Sending money through ACH transfer is a secure and often free option for moving your money, but it is one of the slower options for transferring funds and only available for domestic U.S. transfers. An ACH transfer will typically process between 2-5 business days.

Pros:

• Typically free or low-cost 

• Good for recurring transfers

• Safe and secure

Cons:

• Slow processing time

• Limited to domestic transfers

Wire transfers

Need to get money from your bank to another bank ASAP? Wire transfers are a great option for those extremely urgent transfers.

Pros:

• Fast; usually processed same-day

• No transfer limits; great for large money transfers

Cons:

• Expensive; transfer fees that often range between $25-$50 per transaction

• Non-reversible; wire transfers are essentially final
  

Card Payments (Debit/Credit)

Using a debit or credit card for international transfers is a quick and convenient option. Many online platforms allow you to pay with a card, making it easy to initiate a transfer without needing to log into a bank account or set up direct ACH debits. This option is particularly useful for smaller transfers or when you need to send money instantly. However, it often comes with higher fees, as card issuers may add processing charges, and it’s typically not cost-effective for large transactions.

Pros:

• Fast and convenient, often processed instantly

• Ideal for small transfer amounts

• No need for bank account setup

Cons:

• Higher fees due to processing costs

• Often limited to lower send amounts

• Potential foreign transaction fees if not managed by the transfer service

P2P payment services

Peer-to-Peer (P2P) payment services like Venmo, PayPal, or Zelle provide a quick and convenient way to send funds to friends, family, or businesses without the need for cash or checks. These apps are typically user-friendly, allowing for instant transfers with just a few taps on your smartphone. Many P2P services are free for basic transactions, especially when linked to a bank account. However, there are a few drawbacks to consider when using these convenient options.

• Security: These platforms may be vulnerable to scams or unauthorized access if proper precautions aren't taken.

• Fees: Certain types of transactions, such as using a credit card or requesting an instant transfer to a bank account are often more expensive than other options. 

• Customer service: A lack of formal dispute processes can make it difficult to recover funds that are sent in error or to the wrong recipient. 

Pros:

• Convenient for splitting bills or paying friends

• Often free for basic transfers

Cons:

• May have fees for instant transfers or credit card use

• Transfer limits may apply

• Concerns over personal account security

• Lack of formal disputes for errors or issues

How to use P2P services

1. Download and create an account on your preferred app

2. Link your bank account

3. Enter the recipient's details (usually an email or phone number)

4. Input the amount and tap send

Factors to consider when choosing a transfer method

Now that you're familiar with the options, how do you determine the best choice? We suggest weighing the following factors:

1. Fees: Compare the costs across the various methods. It’s important to look at any additional fees or the differences in exchange rates between each method.

2. Speed: How fast do you need the money to arrive? The fastest method to transfer money between banks will often cost more, but with Xe, transfers are often instant or occur in just a few minutes.

3. Security: Ensure you’re using transfer methods with strong encryption and fraud protection. At Xe, our security team continuously monitors accounts for any anomalies to help make sure your money stays protected.

4. Transfer Limits: Be aware of daily or monthly transfer limits. Don’t let caps or limits cramp your style.

Using Xe: International money transfers made easy

Count on Xe as your one-stop solution for all of your money transfer needs. With more than 30 years of experience, Xe is trusted as one of the world’s foremost currency experts and money transfer platforms. Our robust partnership network gives you the power to transfer your funds from bank-to-bank almost anywhere in the world and at the best possible rates.

Why choose Xe?

• Competitive exchange rates: We're talking bank-beating rates that'll make your wallet smile.

• Low fees: Say goodbye to those eye-watering traditional bank wire fees.

• Large money transfers: We facilitate large money transfers for big investments and foreign property purchases.

• Speed and convenience: Fast transfer times and online access 24/7.

• Global reach: Use Xe to transfer money to over 200 countries worldwide. 

• Security: We’re committed to safeguarding your personal information, money transfers, and accounts.

Ready to give Xe a try?

1. Set up an account on Xe.com or use our mobile app (it's easy, we promise!)

2. Enter your recipient's bank details

3. Choose the amount you want to send

4. Confirm the transfer

5. Xe transfers are fast, often occurring instantly or within a few minutes.

Now you’re ready to start transferring money with confidence. Whether it’s splitting the bill, paying your utility fees, or sending funds abroad, we hope you have the insights to make the right choice. If you still have questions or need further assistance, our dedicated support team is here to help. Don’t hesitate to reach out—we’ll ensure you find the solution that’s right for you.


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The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.