How to transfer money from one bank to another online

There are numerous ways of transferring money from one bank account to account. With the increasing technology, online money transfer has become the easiest way of transferring money from one bank to another without any difficulty. Here are three major means of transferring money.

1. NEFT (National Electronic Fund Transfer)

The National Electronic Fund Transfer or NEFT is the simplest and most liked form of money transfer from one bank to bank.

To make any NEFT transaction, you just need two important pieces of information -- firstly, account number and secondly, the IFSC Code of the destination account.

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

Steps for a NEFT money transfer

Step 1: Go to Fund Transfer tab, and select 'Transfer to other bank' (NEFT)
Step 2: Select the recipient account and enter the relevant details
Step 3: Accept the (Terms and Conditions)
Step 4: Recheck the details, if all and complete the process

2. RTGS (Real Time Gross Settlement

A Real Time Gross Settlement or RTGS is almost similar to NEFT but the minimum payment and how it credits to the destination account differs.
If you want to transfer more than 2 then you can use this. There is no upper cap on the amount.

An RTGS money transfer happens on a real-time basis. The bank of the person to whom the money is transferred gets 30 minutes to credit it to his/her account.

Steps to make RTGS funds transfer:

Step 1: Go to Fund Transfer tab, and select 'Transfer to other bank' (RTGS)
Step 2: Select the recipient account and enter the relevant details
Step 3: Accept the (Terms and Conditions)
Step 4: Recheck the details, if all are correct, then confirm and complete the process

3. IMPS (Immediate Payment Service)

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

In order to avoid fraud complaints, the cap on transaction limit is set very low. For IMPS transfer, you just need to know the destination account holder's IMPS id (MMID) and his/her mobile number.

Steps to make IMPS money transfer:

Step 1:Using your Customer ID and Password into Net Banking/Mobile Banking
Step 2: Go to Funds Transfer tab (Other Bank Account)
Step 3: Select Debit / Credit Account, mode of transfer as IMPS and beneficiary account
Step 4: Enter the amount to be transferred and click on Submit
Step 5: Click on the confirm button
Step 6: Recheck all the information and approve the transaction using OTP (one time password) received on your registered mobile number
Step 7: And at last, confirm by clicking on the submit button.

Through IMPS, you can transfer money 24/7, But RTGS & NEFT can be done only in working hours on weekdays + a few hours on Saturdays only. Other than NEFT, RTGS and IMPS, you can also transfer your money through UPI and cheque.

1. UPI (Unified Payments Interface):

A Unified Payments Interface is a real-time payment system that allows transactions to be done through any smartphone using VPA (Virtual Payment Address).

No bank account detail is needed for the money transfer through UPI. Only mobile number or name is sufficient and the transactions can be done 24/7. UPI-enabled apps allow the transfers up to Rs 1 lakh.

2. Cheque:

You can transfer money from your one account to another account by cheque. You have to simply draw a stating payee as your name along with the account number wherein you want to transfer the amount along with your signature.

It's done immediately at a branch if the transfer is within your bank.

There is no limit if you want to transfer money from your a/c to another bank a/c, but if you want to withdraw a certain amount, there are restrictions.

Through a cheque, you cannot withdraw more than Rs 50,000 from a non-home branch.

Online banking makes transferring money between bank accounts easier than ever. You can move money from one bank to another electronically using a variety of tools. Each method has pros and cons, but they all get the job done.

Bank-to-Bank Transfer

If you’re an owner of both bank accounts, a basic bank-to-bank transfer is a good option. You can set up the transfer with the sending or receiving bank, and the funds arrive at the destination after two or three business days. The timing ultimately depends on which banks you use and whether you are moving money internationally or domestically.

Many banks allow you to make free transfers between connected accounts, but it's a good idea to check with both banks, just to be safe.

Note

Before you can complete a transfer, you need to link your accounts. That process can take about a week, so be sure to establish the link before you need to send money.

How to link your accounts: 

1. Log in to the account you plan to send money from, and look for an option to “add an account,” “add external accounts,” or “link accounts.” You might find those options (or something similar) in your bank’s Customer Service or Transfers menu.
2. Provide the other bank’s routing number and your account number at that bank. If you don’t have that information, get those numbers from a check, from that account's online banking account, or from a representative at your bank.
3. After submitting that information, you may need to verify that you own the external account. You typically do this by providing a username and password for that account or by confirming small “test” transfers between the two banks.

This method is easiest if both bank accounts are in your name. To transfer funds to somebody else, you may need to use a third-party payment provider (such as PayPal) or a wire transfer. Ask your bank what the best solution is.

External Transfer Fees

As online banking has gained in popularity, fees for sending money to external accounts have become less common. Many popular banking institutions offer the service for minimal charges or free if you meet certain criteria. Here’s a small sampling of those institutions:

• Capital One 360
• Chase
• Citi
• Discover Bank
• Navy Federal Credit Union
• PNC Bank
• Synchrony Bank
• Wells Fargo

This is not an exhaustive list, as many credit unions and banks also offer similar services for free. Check with local institutions for details.

Apps and Online Payment Tools

If your bank doesn’t offer bank-to-bank transfers or if you need to send money to somebody else, person-to-person (P2P) payment tools may provide what you need. To set up your accounts, link your bank account to the app or service using your checking account and routing numbers the same way you link accounts from separate banks. For example, if using PayPal, the funds you send come out of your bank account. PayPal then moves funds to the recipient's PayPal account, and the recipient then can spend the money via PayPal or transfer it to a bank account.

Numerous options are available:

• PayPal is one of the most popular services. It may be the easiest to use since its popularity means both senders and recipients are likely to have active PayPal accounts. There is no charge to transfer money to friends and family if you fund the payment from your bank account. But funding transfers with a debit card, credit card, or PayPal credit may result in fees. Businesses may also have to pay PayPal to receive payments from customers.
• Most banks offer free or inexpensive P2P transfers through Zelle, Popmoney, or similar vendors. Those services are often added to your checking account automatically. Look for "personal payments," or something similar, while you're logged in to your account.
• Venmo is a popular tool owned by (and similar to) PayPal. Transfers into a Venmo are free unless you're using the "cash a check feature," and transfers out are free unless you're using a credit card (a 3% charge).
• Google Pay is similar to the services above, and you can link it to (or use it to pay for) Google products and services.

Writing Old-Fashioned Checks

Not in any rush to move the money? Sometimes technology is more trouble than it’s worth. Maybe you’ve got a few bucks sitting around in an old bank account, and you just want to move that cash to your new bank. It might not be worth the effort to punch in all the routing and account numbers and sign up for a new app just for that.

If you’ve got checks, writing one to yourself is a simple solution. Just enter your own name down as the payee, and deposit the check into your new account. You can take care of the whole thing without leaving the house if you deposit the check with your mobile device.

If you don’t have a check, ask your bank to print one for you. Even if you’re nowhere near a bank branch, there’s rarely any difficulty getting a check made payable to you (the account owner) and mailed to your home address on file with the bank.

If you use a credit union that’s part of the shared branching network, you can walk into almost any participating branch in the country and request a check. Moving funds from one credit union to another might be especially easy—and something you can complete in one trip—if they’re both part of the network.

Frequently Asked Questions (FAQs)

How long does it take to transfer money from PayPal to a bank account?

Transfers from PayPal to a bank account can settle within a day or they can take up to three days. You can also pay a fee for an instant transfer that settles within 30 minutes.

How do you transfer an IRA to another bank?

IRA funds cannot be transferred from one bank to another as easily as cash from a checking account. You must open a rollover IRA account and arrange for an IRA rollover from your current account. Failure to properly transfer IRA funds could result in penalty taxes.

How can I transfer money from one bank account to another online?

What is the easiest way to transfer money from one bank to another?

How do I transfer money from my bank account to someone else's bank account?