Banking is a whole lot easier and more convenient than it was a few years ago. Online money transfer is a common banking facility that has a lot of responsibility for this change for the better. Let’s take a look at what this is.
Suppose you have a checking account and a savings account at your bank. You want to buy a present and pay for it with a check. There isn’t enough money in your checking account to cover the check, but you do have money in savings. All you have to do is move some money from your savings account into your checking account.
A few years ago, you might have had to go to the bank, or a branch, and speak to someone in person about doing this. Another option would have been to call your bank on the telephone and request the transfer. Online money transfer is a newer way of accomplishing the same thing. It is very easy for the customer to do. Compared to the other methods, it is probably the cheapest for the bank.
Online money transfers are usually requested from the bank’s consumer web site. Once you are logged in, you can ask for a transfer. The bank will present you with a form to fill in the amount, where the money is coming from, and where it should go. Once you fill this in, the transfer should happen automatically. No bank personnel will be involved unless something goes wrong.
Most banks today will complete the transaction immediately, so that in this case the funds will be available in your checking account as soon as the transaction is complete. Be sure to read what the web site has to say about this, as there is always the possibility that the funds may not be available right away. There probably won’t be any charge for this, but as above, read what the bank web site says about fees.
If you have accounts at different banks, you may be able to move money between them in a similar way. Since the Federal Reserve may be involved in the transfer, it is possible that it may be several days before your funds are available at the receiving bank. There may well be a fee for this kind of transfer.
Another variation would be to transfer funds from your account to someone else’s account. Not every bank can do this, but many can. You would certainly need to know the other person’s account number, and there may be other authentication required. You generally cannot transfer funds from someone else’s account to your account, for obvious reasons.
This is a brief summary of online money transfer capabilities. Please consult your bank for more details. This is one of the very convenient features of modern banking that make life much easier than it was 30 or 40 years ago.