Best Way of Transferring Large Sums of Money Between Bank Accounts


Transferring big amount of money

Several U.S. households send thousands of dollars between banks every year. Whether the money is for family or friends or to buy local assets, it is often hard to easily transfer large sums of money. Also, with several options available, individuals need to consider the speed, support, and cost of the various techniques financial institutions offer for sending and receiving money between banks. Here are some of the best ways to accomplish this task.

The best ways of transferring large sums of money between bank accounts are:

  • Automated clearing house
  • Bank-to-bank transfer
  • Money transfer
  • Third-party companies

Do you want to transfer huge sums of money between banks but don’t know how? Below, I have highlighted a few methods to leverage. I have also included a list of factors to consider when sending a huge amount of money between bank accounts to spice things up.

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Best Way of Transferring Large Sums of Money Between Bank Accounts

Before delving into the crux of this article, let’s first consider something important.

Factors to Consider When Sending Large Sums of Money Between Bank Accounts:

If you are wondering how to send a huge amount of money, you likely have concerns regarding the process. A “huge amount” is defined differently depending on the technique for sending funds, so check with your financial institution concerning limits. Before transferring huge sums of money between bank accounts, consider the following factors:

Fees and taxes:

Depending on where you are sending large sums of money, you may have to pay transfer fees or taxes. These charges depend on where you are sending the money from, where you are sending it to, the technique you are using to send the funds, and any specific fees from the sending and receiving banks.

Before transferring, it makes sense to determine all the possible fees and how they may vary depending on the above factors. Possible fees may include:

Transaction fees:

The fee for transferring money can change depending on whether it is a local or international transfer.

  • Receiving fees: Some financial institutions charge receiving fees, and some don’t. Ensure you check with the financial institution before making a transfer to determine if they charge, and if they do, how much.
  • Intermediary fees: If an intermediary bank has a role to play in the transfer, they may charge an extra fee.
  • Correspondent bank fees: Some financial institutions abroad may charge processing fees, which are removed from the amount you are sending (for international transfers)
  • Cancellation fees: if for any reason you cancel a transfer, you may be prone to cancellation fees depending on the terms outlined by the financial institution.

Security and regulations:

Before sending a huge amount of money, you need to ensure that the bank you are using is secure. I also recommend researching the regulations of your country regarding sending a huge amount of money before initiating a transaction.

For example, there is no legal limit on how much you can send in America. However, you must report any transfer that is more than $10,000 to the Internal Revenue Service via Form 8300. Normally, this is the duty of the banks and money transfer institutions rather than individuals.

What Is Needed to Transfer a Large Amount of Money?

Before you make a money transfer, you’ll need a few pieces of important information. This will depend on where you are sending the money and the technique you choose. You will likely need the receiver’s complete official name and bank details, whether you are sending bank-to-bank or leveraging international money transfer services.

If, for instance, you reside in a country like Canada and are sending money abroad, you will require your receiver’s address. If you are transferring money to Canada, you’ll typically need this info from your receiver:

  • Name
  • Transit number
  • Account number
  • BIC/SWIFT
  • Bank institution number

When sending a huge amount of money, you might see references to international bank account numbers or IBANs. These numbers refer to a type of coding system used to pick out bank accounts abroad, and they begin with the country’s two-digit country code. American banks don’t currently use IBANs. Thus, you will require a BIC or SWIFT instead.

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That said, let’s consider some of the best ways to spend huge sums of money between bank accounts:

  1. Automated Clearing House (ACH)

ACH transactions are like money transfers in that they use a network of banks. However, the difference is that you can send large amounts between bank accounts. This means that to make the transfer, both parties must adhere to bank-specific instructions to ensure that everything is well set up. ACH transfers generally boast of lower fees but won’t work if both parties lack a participating bank account.

  1. Bank-to-bank

Another method of sending huge amounts between banks is using a bank-to-bank transfer. All you require for this type of transfer is the receiver’s bank account details and the routing number, if possible. This type of transfer is fast but generally has a fee, depending on the institution.

  1. Money transfer

Money transfers can be done online and in-person and allow people to send a huge amount of money between banks. Money transfers use a network of domestic and international banks, and the money is processed via that network.

One of the perks of a money transfer is that the funds can clear pronto, depending on your transfer details. Domestic money transfers can take a day, while international money transfers can take around one to five business days.

  1. Third-party companies

Your bank isn’t the only option to transfer cash. Third-party applications like PayPal, Venmo, Western Union, etc., are also options to think about if you want to transfer large amount of money between banks.

Transferring money from a linked bank account or PayPal cash is one of the best ways to dodge transaction fees in the United States. Worthy of note is that international transaction fees are normally higher. Also, you will be charged an exchange rate if you transfer large sums of money in foreign currency.

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