How To Transfer Money Between Banks?

Bank to bank transfers might seem complex to some people, but that couldn’t be farther from the truth.

However, although the steps are relatively straightforward and easily memorable, learning the best way to do your transfers can still be helpful. That’s why we’ve written a guide on how to transfer money between banks so that you won’t have to overthink the process.

If this piques your interest, stick around and let’s learn how to transfer money to another bank account!

Steps To Transfer Money Between Banks in Canada

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If you want to learn how to transfer money between two banks in Canada, there are a few steps you’ll need to take. Keep in mind that the main focus here is transferring money between two accounts you own. Although the process isn’t much different when you transfer to another person’s account, you’ll just need to ask them for the information.

Here’s a brief rundown of what you’ll need to do:

1. Link the Two Accounts

The first step is to link the sending and receiving accounts. You can do this by providing the receiving bank with the sending bank’s account number and routing number. Therefore, the receiving bank can connect the accounts and process the transfer. Moreover, some banks have additional features, like Scotiabank, that allow money transfers to another bank internationally.

You might be interested: Best Canadian Banks to Invest in This Year

2. Provide the Information Needed

If you’re transferring money online, you’ll need to provide the receiving bank with specific information to complete the transfer, apart from the account and routing number. Therefore, you’ll need to provide the receiving bank with the amount of money you’re transferring, the date of the transfer, and your signature.

Moreover, If you’re transferring money over the phone, you’ll need to provide the receiving bank with similar information. You’ll also need to provide the account holder’s name and contact information. This will help ensure that the transfer is processed smoothly.

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3. Verify the New Account

Next up is the account verification. The sending bank might ask you to provide the username and password for the account in the receiving bank. Then, the sending bank can electronically verify your connected account and prepare it for external transfers.

4. Prepare the Transfers

For your transfer to be processed correctly, you’ll need to be aware of a few things. For example, you’ll need to ensure the money is in the correct format, the transfers are properly dated, the account information is accurate, and pick whether you’d like to make a one-time or recurring e-transfer.

5. Set up Your Deposits

If you’re transferring money regularly, you may want to set up automatic deposits. This will make the process easier and ensure that the money is transferred promptly without you checking or rechecking it every time you want to file an online transfer to a deposit account.

6. Transfer Your Money

Now that everything’s completed, it’s time for you to transfer your money. Remember that transfers can take up to a week to reach the receiving account, especially if they are done during national holidays. Usually, it takes approximately two or three days.

Furthermore, keep in mind that some banks have transfer limits. For example, RBC’s transfer limit is $2,500 per day if you’re transferring for the first time. Make sure you research the specific limits your bank upholds to avoid getting yourself into a sticky situation.

Further reading: 21+ Canadian Banking Statistics You Shouldn’t Miss in 2021

Alternatives to Bank Transfers

If you need to transfer money but don’t want to use a bank transfer, there are a few alternatives. Before choosing the method you like best, consider the pros and cons of each and think about which one is right for you.

Peer-to-Peer Payments

You can use services or mobile apps like PayPal, Venmo, Zelle, CashApp, and Apple Cash to send and receive money. These services are typically more straightforward than bank transfers and offer more flexibility. Additionally, they’re often free to use, and the money is moved almost instantaneously.

A unique feature of P2P apps is the ability to keep a balance. Therefore, you can keep a short-term savings account right on your phone!

Wire Transfers

Another feasible option for payments is through a wire transfer, which is a non-bank provider of financial services. Some of the most popular providers are TransferWise and Western Union. What’s more, they’re ideal for quickly transferring large sums of money between bank accounts.

Wire transfers are undoubtedly the most reliable option on this list, but they come at a price. For instance, RBC has a wire transfer fee starting from $45 for outgoing payments and a $17 fee for incoming payments.

Write a Cheque

Another option for transferring money is to write a cheque. This can be a good alternative if you need to move a small amount of money. Additionally, cheques are often cheaper than bank transfers. However, it can take a few business days for it to clear, so if you’re in a hurry, this wouldn’t be the best option for you.

Moreover, transferring money from one of your accounts to another is very simple. All you need to do is write a cheque to yourself!

Advantages of Bank to Bank Transfers

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To help you make up your mind about the benefits of transferring your money to a different bank, we’ve included a brief list of advantages.

The Speed

One of the most significant advantages of bank transfers is that they’re relatively fast. Bank transfers are typically processed within a few days, much faster than using a money order or wire transfer. This makes them an excellent option for transferring money quickly and easily.

The Security

Unsurprisingly, bank transfers are also secure. One of the reasons is that the federal government backs all bank transfers made on the territory of Canada. Moreover, they use various security measures to protect your money and ensure the protection of your account. By extension, this makes them a safe option for transferring money online.

The Flexibility

Finally, it’s good to know that bank transfers are also flexible. Moreover, you can also use them to transfer money between different countries. Additionally, bank transfers offer a variety of features, such as the ability to schedule future payments in advance. These additions make them a great option for transferring money on a regular basis.

Finishing Thoughts

In conclusion, bank transfers are a great option for transferring money between banks, both domestically and internationally. By following our step-by-step guide on how to transfer money between banks, you’ll be well-acquainted with the intricacies of this process.

Now go and send yourself some money!

FAQ

What is a bank transfer?

A bank transfer is when a sum of money is sent from one bank account to another.

How do I transfer money from BMO to another bank?

First, you’ll need to sign in to your online banking account and tap the Payments & Transfers button. Then, you’ll enter the details regarding the sending and receiving accounts. Finally, you’ll confirm and transfer your money.

Can you e-transfer to yourself?

Yes, you can e-transfer to yourself. E-transfers are typically processed immediately or in about 30 minutes.

Does CIBC charge for e-transfers?

If you use CIBC to transfer money to someone else’s account via e-transfers, you won’t be charged a fee. However, if the receiver has an account from a different bank, they may be levied a fee from their financial institutions.

Are e-transfers instant?

Most e-transfers are almost instantaneous, with the occasional 30-minute wait time depending on your bank or credit union.

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