A wire transfer is the best way to transfer money from one bank to another because of its ease, speed, and safety. You can also use it to transfer money to investment platforms like SoFi Invest.
All wire transfers have a fee for every transaction, so you need to look at the one with the least fees and fastest transaction speeds. According to experts at SoFi, you can make a wire transfer online, in person, or over the phone.
It would help determine which way will be the cheapest, fastest, and most convenient. However, if you are new to wire transfers, an easy step-by-step guide is here.
Select a provider
You can choose to transfer your money from a bank or other non-bank financial institutions. Banks are the most popular options and have lower charges than on-bank solutions. They are also safer and more reliable.
Open an account
If you are using a bank, you have to open an account with the bank, but you don’t have to open one using non-bank financial institutions like Western Union. Most bank and non-bank providers have online forms to fill out your details and get your account number.
After you open your account, you have to activate it and create an original password, after which you can deposit money.
Check the fees
Once you log into your account, you will see a “send money” button. Clicking that button will send you to a page where you need to fill out details, but there will also be an indication of the fees you will incur.
The fees vary from provider to provider, where you send the money, and how much you spend. Checking the prices prevents you from getting surprised with additional fees or hidden expenses.
If you are sending from a bank, they will mostly charge the fees from your account. However, non-bank providers might take the money from your debit card, credit card, or bank account.
Provide required information
Most financial institutions will ask whether you are sending on behalf of other people. If not, select personal transfer, then give the required information. The needed information varies between financial institutions, but the general information you should provide includes:
- Recipient’s name and address
- Recipient account number
- Recipient’s bank name and address
- SWIFT code if you are making an international transfer
- Recipient’s wire transfer routing number
Finally, enter the amount you want to transfer.
If it’s your first time sending money, some financial institutions require that you provide ID documents like national ID, driver’s license, or passport to verify your identity.
Sometimes it is usually hard to reverse a wire money transfer. Therefore, you need to ensure that the details you provide, like personal details, recipient’s details, and amount are correct.
Keep the receipt
Once you click send, the financial institution will send you a notification verifying the transfer, and they tell you how long it will take for the money to reflect in the recipient’s account. They also send you a receipt showing all the details of the transfer.
Download it or create a folder in your email inbox to keep the receipts safe. That will help if there is any problem or misunderstanding with the transfer. The duration depends on the financial institution you use, where you are sending the money from, and where you are sending it to.
Wire transfer is the best way to transfer money from one bank to another. However, you need to research financial institutions and compare the prices, transaction speeds, and privacy policies before choosing which one to use.