Transferring money to another bank Account

Overview of money transfer methods

The right money transfer method depends on the amount you’re sending, the urgency and whether it’s an international or domestic transfer.

Your options include bank-to-bank transfers, payment services and mobile payment apps. Bank-to-bank transfer services, such as Faster Payments and CHAPS, can be quick and more secure. For international transfers, you can use SEPA or SWIFT at your bank, or specialised services such as Western Union.

Mobile payment apps such as PayPal provide a quick and easy way to send money, usually smaller amounts.

Bank-to-bank transfers

Bank-to-bank transfers move your money from your account to another. These are also known as wire or online bank transfers.

A bank transfer is a good way to move money to:

• An account in your name with the same bank
• Accounts in your name with a different bank
• Someone else’s account
• Pay for goods or services

Banks send most transfers through the Faster Payments System. This is free for personal banking customers. Business account customers may pay a fee. Make sure you’re aware of any fees or transfer limits.

Using payment services

Payment services are other ways to pay for goods and services and send money to another account. They include the Faster Payments System, BACS and CHAPS payments. They offer a speedy, secure way to send money without disclosing your bank details.

International transfers: SWIFT and SEPA

Banks can transfer money to an overseas account. But specialist money transfer firms such as Wise and Western Union may be cheaper than banks. It depends on the transfer’s destination.

There are two international money transfer systems:

• SEPA (Single Euro Payments Area)
• SWIFT (Society for Worldwide Interbank Financial Telecommunication)

SEPA is faster and cheaper within Europe. SWIFT costs more and is usually for global transfers.

You’ll need these details to make an international transfer:

• Name and address
• International Bank Account Number (IBAN)
• Bank’s name and address
• Bank Identifier Code (BIC)

Mobile payment apps

Mobile payment apps, such as PayPal, make it easy to transfer money using just your phone. You can often use the recipient’s email or phone number to quickly send money.

But make sure to only use these apps with people you trust. Also, check if any transfer limits or fees apply before making the transaction.

How to transfer money to another bank account safely and securely

Always focus on safety and security when transferring money. Use a reputable money transfer method and only share your details with people you trust. Beware of any unexpected requests for your information.

Many banks now use two-step verification to stop fraud – make sure this is set up. Check your account often and set up alerts to spot any unauthorised activity. This allows you to fix problems right away. Report any issues promptly, as you may be able to get your money back.

Carefully review the transfer details to check they’re accurate. Monitor your transaction history closely and check the status of your transfers. Stay alert to avoid being a victim to any scams. Don’t send money to unknown recipients or share your personal data.

Understanding fees and exchange rates

When transferring money internationally beware of poor exchange rates and high fees. Check the fees charged by both your bank and the account you are sending to. Also look at the exchange rate being offered.

Many banks offer free domestic bank transfers between accounts. But some may charge a fee of up to £5 for transfers to accounts with different providers. These fees can be higher, up to £30 per transaction, when sending money abroad.

Alternatively, specialist money transfer firms usually charge a flat fee. This ranges from 30p to £5, depending on the transfer amount and destination.

Verifying transfer details

Before sending any money, double-check the details to avoid errors. Accidentally sending money to the wrong account or the wrong amount can be hard to reverse. Check the account number, sort code and name are correct.

Fortunately, most banks are signed up the ‘confirmation of payee’ scheme. This checks the recipient’s details against their bank account. If there’s a mismatch, you’ll receive a warning, allowing you to decide whether to proceed with the transaction.

Here are the details you’ll need for the recipient:

• Name
• Sort code (six digits)
• Account number (eight digits)
• IBAN and SWIFT/BIC code for international transfers
• Personal or business bank account
• Payment reference
• Amount
• Date of transfer

Your bank will also securely store the transfer details, so you can quickly send money to the same person or business again.

Protecting your financial data

To protect your financial data when transferring money, only share sensitive details with recipients you know and trust. Be cautious of unsolicited requests to send money – this could be a scammer trying to trick you.

Banks try to prevent fraud. They may ask you to confirm if you know the recipient and the purpose of the payment. Your bank may warn you if it suspects the transfer could be a scam. These steps help make your finance safer.

Comparing money transfer speeds, limits and fees

The transfer speeds, limits and fees vary based on the method and bank you use. Banks set their own transfer limits, too. For example, Lloyds allows up to £25,000 per day, while NatWest’s limit is £20,000.

You’d typically use Faster Payments for transactions up to £25,000. But if you need to send a large amount of cash, you can use CHAPS (Clearing House Automated Payment System). There are no limits when using CHAPS. Ask your bank which is the most suitable for the amount you’re sending.

Faster Payments and CHAPS usually transfer money instantly to another account. But you’ll pay a fee for CHAPS – typically £20 to £30 per transaction.

The Payment Systems Regulator says banks may charge from £0 to £20 for domestic transfers depending on the service used, and £9 to £30 for international transfers.

Domestic transfers

Many banks provide same-day or next-day domestic transfers, often with minimal to no fees. The transfer limits for these transfers within the same country are generally high, allowing for the movement of large sums of money. But you may have to pay a fee if you’re sending a large lump sum for something like a house purchase.

International transfers

Sending money internationally can involve long processing times and higher fees compared with domestic transfers. It’s also not as simple. There are two costs:

• The fee charged per transfer: usually a flat fee or percentage of the transfer
• The exchange rate: the rate could vary throughout the day.

Don’t simply go via your bank. It may be cheaper and faster to use specialist currency exchange services such as Currencies Direct or Wise to send money abroad.

SWIFT and SEPA are the main systems for international money transfers. They tend to have longer processing times and higher fees compared with domestic options.

Key points:

• The exact speeds, limits and fees for international transfers will depend on the specific bank and countries involved.
• Check exchange rates. Specialist currency firms can be cheaper than banks.
• Find competitive deals on a comparison site such as FXcompared.com.
• The simplest way to find out the cost is to ask how much of the currency you’ll get for your pounds.

Pro tips for transferring money from one account to another

Follow these tips for a smooth and successful money transfer:

Plan ahead for international transfers

Start international transfers early as they can take time. Be mindful of public holidays here and abroad, or weekends, as they can affect transfer times.

Choose the right transfer method for your needs

Consider speed, cost, limits, and recipient location when deciding which transfer options suits your needs. This should ensure a seamless and cost-effective transaction.

FAQs on money transfers

Get answers to common questions:

How do I transfer money from one bank account to another?

You can usually transfer money into another bank account using mobile or online banking, by phone or in a branch. Most banks let you transfer a daily limit using the Faster Payment Service.

Can I reverse a completed money transfer?

It's difficult to reverse a transfer, especially internationally. However, if you’ve made a mistake, contact your bank right away. It can try and get the money back. It’s better to double-check details before sending.

How do I track my money transfer?

Banks and payment services provide a tracking number. This helps you monitor the status, especially for international transfers with longer processing times.

What are the safest ways to transfer money?

Use a legitimate, regulated bank or payment app with security features. The Financial Conduct Authority (FCA) says to avoid unexpected money transfer requests, which could be fraudulent.

Summary: Choosing the best money transfer option

The best ways to transfer money to another account are secure, fast, free or low cost. But the best option will depend on your particular needs.

Make sure you check the details for a smooth transaction. Choose a provider that can get the money to the recipient quickly for urgent payments. Pick a competitive specialist currency transfer firm with the best rates for international transfers.

But make sure you review the account details before you transfer – prioritise your money’s safety for a successful money transfer.