How transferring funds work

Here’s the best way to transfer funds to another account, without the hassle of visiting a branch.

There are many reasons as to why you’d want to transfer funds from one bank to another. For instance, you could either transfer funds to combine them with a partner, or just to a savings account. Furthermore, you also could be moving your money to a new account if you’re cancelling your current one.

Nowadays, you won’t need to leave the house to do complete any financial transactions. With online banking, you can easily transfer or receive funds up to certain amounts. Therefore, that can be done either through your banking app or with a third-party money-sending app.

How long does it take to transfer funds between accounts?

Transferring between banks can take anywhere from minutes to days depending on your chosen method of transfer. The table below briefly displays different transferring methods, time and fees in Australia. Transactions between different bank accounts can only occur on business days (Monday to Friday, excluding public holidays.) 

When transferring your money, it’s always best to check if you have a sufficient amount. Consequently, transferring with insufficient funds may result in overdraft fees and could delay the process. 

Transferring funds between banks

Usually, there are 3 ways to transfer between banks. Those methods are:

– Cheques

– Wire Transfer

– Online

Cheques

Although it’s an outdated method that not many people use, checks are still a tried and true way to transfer funds. Therefore, you can either write yourself or another person a check, and have funds transferred through a branch. 

Read more about how cheques are processed here! 

Wire Transfers

Although they come with a fee, wire transfer is a method used for large amounts as it has no limits. However, wire transfers can take anywhere between 1-2 business days.

Bank-to-bank Transfers

One of the most common ways to transfer money is through your local branch or online. Therefore, bank-to-bank are one of the fastest ways to transfer funds and generally incurs no fees. However, when transferring between different banks, it may take up to 24 hours. Many Australian banks have online banking allowing you to instantly transfer funds between your accounts. Moreover, features on online banking include scheduled transfers in case you’re an employer and have to make constant payments. 

Want more banking tips? Check out our latest article on bank statements!