Each second, millions of dollars are being transferred between banks in the United States using various transfer methods, such as wire transfer, ACH, and check deposits. Of course, these transfer methods are quite safe and efficient, at least to our knowledge. However, one important thing some of us are yet to know is the timeframe for a typical bank-to-bank transfer. How long does it take to transfer money from bank to bank?
The time it takes to transfer money between banks varies for each transfer method. However, based on estimates, it takes around 24 hours to five working days to transfer money between banks depending on the transfer method you choose to leverage.
Gone are the days when money was exchanged physically. Today, with the help of banks and technology, you can transfer money from the comfort of your home to anywhere around the world. However, one major concern people face is predicting when a recipient will get the transferred fund. Many people want to know when the money will be received at the other end. Unfortunately, this is a piece of information that seems hard to come by. To quell your curiosity, I have decided to highlight the timeframe for each transfer method.
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How Long Does It Take to Transfer Money Between Banks?
It has never been quicker and easier to transfer money globally, thanks to an array of transfer options. If you intend to use any of these options to send money to a business associate, a loved one, or probably another account of yours, you may want to know how long it’ll take for the money to hit.
Below I have outlined how long it’ll take to transfer money between banks using each of the common electronic transfer options.
Let’s begin with a wire transfer. How long does it take to transfer money to another account using this transfer method?
How Long Does a Wire Transfer Take?
A wire transfer is basically an electronic transfer from one bank or credit union to another. This electronic transfer option is widely utilized thanks to its speed and efficiency. If you transferred money between banks using wire transfer, you’d have to wait for three days, at most.
However, if you sent the money to a similar financial institution using this transfer method, the transfer can take less than 24 hours. Wire transfers through a non-bank money transfer service may take place within minutes. However, their security isn’t always top-notch.
While considering the time it’ll take to transfer money between banks using wire transfer, it is essential you consider what I call cut-off time. Cut-off time is the time when banks stop processing requests.
For most banks, the cut-time is 5 pm. Request made after 5 pm is usually processed the following business day, thus delaying your fund transfer. Ensure you find out the cut-off time for your bank to keep track of your transfer.
Still on the question, “How long does it take to transfer money from bank to bank?” Let us consider ACH transfers. If you transfer money between banks via ACH (Automatic Clearing House) transfer, how long will it take?
How Long Does an ACH Transfer Take?
The fact is, banks process ACH and wire transfers differently. Put differently, bank A processes these transfers differently from bank B. Network operator’s process ACH payments in groups three times daily than on an individual basis. This network is responsible for processing more than 24 billion electronic payments for all U.S financial intuitions annually. With the arrays of transfers waiting to be processed by ACH, there is a huge chance that your transfer may take several business days to clear.
Schedule for ACH credits and debts are outlined by the National Automated Clearing House Association (NACHA). Accountholders make ACH credits themselves, and the ACH should pass it through their system within one to two business days.
How Long Does a Check Deposit Take?
The automatic clearing house processes deposits into current accounts, including ACH credit and debit transactions. Banks place holds on deposits to make sure that the funds clear into the recipient’s account before it is withdrawn. The timeline for the hold differs per financial institution. However, if you transferred money between banks using this method, expect the check deposit to clear between two to five business days.
Your bank will likely place a hold on a check if it’s from another state or for a large amount, as the teller will need to reach out to the issuing bank to determine if the funds are ready. You should be able to withdraw checks the following business day if they are paid from the same financial institution as yours, from the same state, or for small amounts. Checks such as cashier’s checks, checks from the United States Treasury, including direct deposits, will clear quickly.
Be Proactive When Sending Money Between Banks:
Many people ask the question, “Why do bank transfers take long” without realizing the reason for the delay. Unless you are using a quick electronic transfer method like wire transfer, expect the slight delays. Remember, you aren’t the only one making these transfers, so there are chances that the delays result from the backlog.
To prevent delays when transferring money, always ensure that you:
- Send the money early in the day (a business day, of course)
- Crosscheck the details before sending to avoid errors
- Contact your bank in case of any lengthy delay. The earlier, the better
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Why Does It Take so Long to Transfer Money Between Banks?
Transferring money from one bank to another can be a hassle, given that you may have to wait for days, or in some situations, weeks, for the money to clear. Sometimes, the delay could be your fault, or some security measures put in place to checkmate crimes like money laundering, etc. Other times, the delays just happen. If you have experienced several delays with transfers, you may want to know the reason behind them.
Transferring money between banks takes a long because all transfers for a bank are usually done in batches during the day to an ACH. ACH sorts the transfer out and moves them to the receiving bank. This task can take a long time due to the extensive number of batches being processed daily.
Bank transfer time differs for each bank due to the difference in how they process transfers. However, with the transfer times stated above, you should have a good idea of how long it’ll take for your transfer to reach the intended recipient.
