In this post, we are going to learn how to transfer funds electronically. I am really excited about this post as a lot has happened in this field in the last few years.
The past few decades have witnessed some amazing developments in the banking sector. It is now very easy to transfer money electronically when you compare it to the situation 20 to 30 years ago.
I remember when I joined the finance profession, the only thing close to what we have today was to transfer money through a telegraphic transfer.
I remember preparing an official letter requesting the bank to transfer funds to a bank account in another part of the country.
One had to take these letters by hand to the bank. It is a totally different situation now as one can in most cases transfer funds easily in minutes using a phone or a computer.
How To Transfer Funds Electronically
In the following paragraphs, I will discuss some of the ways you can transfer funds or money electronically.
Online Transfer Between Own Accounts: Same Bank
If you have bank accounts in one bank you can easily transfer funds between those accounts easily online. All you need is to have access to online banking which many banks now offer to all customers.
In this case, you will need to log in to your account and follow the instructions on transferring funds between accounts. In transferring the funds you can choose to make the transfer immediately or you can schedule it for another day.
For most banks, the immediate transfer happens in a twinkling of an eye. You can then start using those funds right away.
Apart from logging in to your account through your bank’s website there also bank phone apps that you can use to do this transfer. You, therefore, don’t need to be near a computer to transfer your funds. All you need is access to the internet.
This is perhaps the most convenient way to transfer funds as mobile smartphone penetration is very high in poor parts of the world.
Online Bank Transfer to Your Account in A Different Bank
Nowadays it is now possible to connect bank accounts you own in different accounts. To do this one needs to log into one’s bank account and follow instructions on linking accounts.
You can find information on how to do this by searching the help page of your bank. Before you do this just make sure that you have all the information about the other bank account such as the account number, routing number, etc.
After you do this you may be asked to verify ownership of the other account. This makes it easy for one to avoid overdraft fees, miss payments as the bank can use the other account to pay.
Transfering Funds to Somebody Else: Bank
Nowadays it is easy to transfer funds to friends and family. It only takes a few minutes in some cases for the funds to get transferred to the other person’s bank account. This is especially true if both bank accounts are held by the big national banks such as JPMorgan Chase & Co. Chase Bank, Bank of America Corp, Citigroup Inc., etc.
In cases where this is not possibly the transfer can be finalised within 3 days.
All you need is to log in to your bank account online or your bank app and follow the instructions on the transfer. You will need to have the other person’s name and bank details to do this. Sometimes you may be required to provide the other person’s bank address.
Transfer Funds Electronically To Someone Using a Phone app
In the case where you want to send money to somebody else then one of the ways to do this is through various phone apps such as PayPal. These apps are connected to your bank account enabling you to make payments to others through these apps.
Through apps such as PayPal, you can transfer funds to another person PayPal account fast and easy. These apps are what are called P2P (person to person) that have made payments between buddies easy.
Please visit Best Mobile Payment Apps to learn more about these apps.
PayPal is the most popular payment app but there are other apps around. However, if you are just starting out you are better off starting with PayPal as it has many subscribers.
PayPal is still far ahead of other payment apps although other apps are catching up fast.
One of the advantages of PayPal is that you can make payments to others for free if funding it through your bank account. However, if you use debit and credit cards there may be fees when you are funding your account.
Banks are also joining the bandwagon of these payment apps. There are apps such as Zelle that some banks make available to their customers.
Google also has an app called Google Pay to which you can link your debit card and be able to make person to person payments. With Apple also joining in, the competition is getting stiff which is good news for the consumer as it will push charges down.
Another way of sending money when you don’t have a bank account is through what is called mobile money. It is a very convenient method for the unbanked populations in the world, especially in the developed world.
In some countries such as Kenya, this method is the most popular way for individuals to send money to parents and friends. It is a wonderful alternative to bank accounts.
One of the advantages of mobile money is that while you may need a smartphone for the other apps I have mentioned above, for this, any basic phone can be used.
For mobile money phone companies who control this service provide a menu on your phone. You can then access this menu on your phone to choose the service that you want. Sending money is just like sending a text when it comes to Mobile Money.
Nowadays you can actually use mobile money to purchase items, pay bills etc. Do
This method has not taken off in the Western world as most people have banks and have smartphones but things may change in the future.
As you can see there are several ways that one can use to transfer funds electronically. You only need to choose the most convenient way for you.