If you need to pay back a friend, split rent with a roommate or transfer funds into another bank account, there are many ways to do it. Depending on your needs, you can use online banking, telephone or in-person options.
When transferring money, be sure to check that the person or company you’re paying is a real business with valid contact details. For example, look up their bank name, address and account number on the internet. If they don’t have a website, or if the website appears to be fake, it’s likely that they’re trying to trick you into handing over your money for an unauthorised purpose. You should also always call the recipient’s bank before sending them any money to confirm their account details.
You can transfer money between accounts at the same financial institution for free using your bank’s online or mobile apps. You’ll need the account number of the person you want to send money to and their bank’s routing number. This method is best for smaller amounts. If you need to move large sums of money, you can use a wire transfer or ACH. These typically take two or three days to process.
If your friends or family don’t have bank accounts, it can be difficult to transfer money to them. There are a few methods you can try, though, including physical cash and checks. Alternatively, you can try a peer-to-peer payment app like PayPal or Zelle, which let you send and receive money for free. These apps often have limits on how much you can send, but are good options for transferring small amounts.
A wire transfer, a more secure option, can be used to move larger sums of money from one bank to another, either within the same country or between different countries. You can set up a wire transfer with your bank, but there are other services that offer cheaper and faster alternatives.
Some services, such as OFX, charge no fees at all when you send money abroad. Others, such as Western Union and MoneyGram, charge a markup on the midmarket exchange rate (the price that banks buy and sell currencies at) plus an additional fee.