How Long Does It Take To Transfer Money Between Banks?
How Long Does It Take To Transfer Money Between Banks? This article discusses the money transfer process, describing all you need to know.
Nowadays, bank transfers have almost taken over the use of physical cash for daily transactions. Most Canadians prefer to use transfers to pay bills, send money to friends, and purchase groceries. Although this method of payment is very secure and reliable, its speed is one factor most people also consider.
So how long does it take to transfer money between banks on average? The answer to the question primarily depends on the banks involved in sending and receiving the money and the transfer method used.
What are Wire Transfers?
Wire transfers or bank transfers are methods of moving money from one person’s bank account to another electronically. You can initiate wire transfers through your bank or any other non-bank money transfer service, such as SanaTransfer. Wire transfers can either be domestic (within the country) or International (globally).
Factors Affecting How Long a Money Transfer Takes
Besides the type of bank and method of transfer, here is a list of other factors that may influence how long your bank transfer takes.
1. Timing of the transfer
Wire transfers are only processed on business days. This means that they aren't processed on holidays or weekdays so any transfer done during these periods will not be completed immediately. Also, banks and other financial institutions have their set cutoff times for when they can process wire transfers. For example, if your bank sets a cutoff time of 4 p.m., any domestic wire transfer you initiate at 4:10 p.m., will not get processed until the next working day.
2. Third-party intermediaries
International (global)wire transfers usually involve a third-party bank. This bank acts as an intermediary (middleman) between the sending and accepting banks. Adding a third-party bank to the transfer process may slow down the whole transaction.
3. Countries involved
If you are sending money internationally, the banking regulations of the destination country may slow down the transaction. Different countries have set different banking laws and strict fraud detection processes, which could extend the processing time. In countries specified as "slow to pay” countries, there could be extra delays.
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How Long Does It Take To Transfer Money Between Banks?
Depending on your bank and method of transfer, a bank transfer takes between one to five business days to get completed. Generally, domestic wire transfers (these are transfers to banks/financial institutions within Canada) are completed on the same working day. International wire transfers, on the other hand, typically take longer―sometimes up to five business days to get completed.
It is important to know the fastest methods of transfers so that you can choose the most suitable option for your needs. We will be discussing fast transfer methods subsequently.
How Much Do Bank Transfers Cost?
The total cost of a bank or wire transfer differs depending on the kind of transfer and the banks involved. Wire transfers typically cost between the range of $10 to $35. This transfer charge may include:
- Fees for sending money
- Fees for receiving money
- Fees charged by any other third-party bank involved (during international bank transfers)
- Currency exchange expenses (for only international bank transfers)
Note that your bank may charge you other fees. Just ensure that you check with your bank or any company dealing with the wire transfer to ensure you understand all the fees involved in the transfer before you initiate any transaction.
Related Article - How to Transfer Money Between Banks in Canada
What is the Fastest Way to Transfer Money?
If you're transferring funds domestically, a wire or bank transfer is generally the fastest way to get the money to the recipient. However, there are some other methods of transferring money. They include:
1. ACH Transfer
Automated clearing house (ACH) transfers are a payment method that can be used to transfer money between different banks in the U.S. Most banks in the U.S. offer their customers ACH transfer services at no cost.
The downside: ACH transfers are not fast, unlike wire transfers. Generally, wire transfers give the receivers access to the money as soon as it reflects in their account. However, money from an ACH transfer stays "pending" for almost three working days before receivers can use it.
2. Writing a Cheque
You can choose to write a cheque and have your intended receiver deposit it at the bank. This transfer method gets completed in as little as two working days.
However, deposits of large amounts in one day may take much longer than two days to clear.
3. Peer-to-Peer (P2P) Payment Apps
An app like SanaTransfer is another means of sending money to your friends and loved ones abroad. This app is suitable for all Canadians who want to send money to another person abroad at a cheap cost. The money will get to the recipient within 24-48 hours or less. Here are some reasons why it is better and safer to use a P2P transfer app like SanaTransfer:
- There's no need to hold physical cash or debit/credit cards. You just need your smartphone and Internet access.
- You can send money to any country instantly.
Bottom Line
Generally, bank transfers in Canada take one to five business days to get completed. Basically, the processing time of your transfer can vary depending on your bank, method of transfer, and timing of the transfer. Different banks in Canada have different transfer cutoff times, so it is important to know what applies to your bank.
As for the different methods of transfers, wire transfers are the fastest way to send money, as the recipient will receive the fund and have access to it almost immediately.
SanaTransfer offers easy, fast and secure payment services with better rates and faster payouts for international remittance. Sign up now to get started.