Transferring money from one account to another once seemed to be a hectic task. You had to stand in the long queue, waiting for hours, and at last, getting your turn to fill a list of necessary formalities before doing the transaction. Well, that’s a past nightmare, now we have the privilege of doing the monetary transaction within a single click from our mobile phone only. You won’t necessarily have to visit your bank branch to make it happen.
Well, that’s a general idea which most of us are aware of. However, things are not the same anymore. Now it hardly takes any longer to manage your monetary transaction even through offline mode. Plus, we have this net banking facility now to make this process even easier.
So, in this article, we will be covering everything regarding the advantages of money transfer from one bank to another in different modes, and how the process works in both online and offline modes.
Advantages of Money Transfer From One Bank to Another
As mentioned above, it takes 50 times more time to transfer money offline than the time you usually take to transfer money via online mode. So, suppose you are in urgency and need immediate fund transfer, then offline transfer does not seem to be any cooler idea. This is where the need for speed is significant.
While cheques which almost take around a week or more to get processed and credited to the receiver account, money transfer can be instantly initiated within a day’s time through the online mode. It becomes quite easier and faster to receive or send funds, manage bills, check balance and transaction history, and so on. Nowadays net banking covers many important features that can help you avoid late fees and other charges (which often happen with the people who still emulate the old conventional process of money transfer).
Sending cheques through email is a challenging step. There always remains a doubt and possible fear of the money getting scammed or lost while making it’s way from your mailbox to the receiver’s account. Unfortunately, if you are the recipient this time, and the cheque got lost in the mail in spite of you being credited the cheque on time, you will probably face delayed fees.
If your cheque is already hacked, then the scammers will gain access to your account number and other sensitive bank credentials. Using those details then will eventually drain out your bank account leaving it “NIL”. In such cases, it is way better to go for direct cash transfer rather than sending cheques through vulnerable internet sources. In this way, you stay rest assured about the confirmation of your money transaction and other details related to it.
If you are legit a bank account holder and want to set-up further external accounts to manage your funds back and forth at will, it is possible. Though the initial process of opening a new account might take some days, once it is set-up, you can initiate the money transfer straight-away in minutes.
This way, it becomes easier for you to manage or move your money whenever required to make major investments, purchases, or others. Plus, you can enjoy the benefit of higher interest rates, or make sure that you have sufficient funds available in cases of urgency.
How to Transfer Money Between Two Different Banks via Offline Mode?
Here are some of the methods to transfer fund from one bank to another via offline mode:
- Firstly, you can write a cheque in the name of the recipient/entity (to whom the cheque amount yo be transferred.) Provide accurate information regarding the payee’s account number, name of the payee as per the bank account record. Then fill the amount both in words and figures. However, be very careful while filling the details as overwriting can decline the cheque from processing.
- Or, you can transfer a demand draft in the name of the payee. Simply, order the RTGS or NEFT transfer by visiting your bank in person. Then fill the necessary draft credentials in the required form as per the transfer plan you choose (NEFT or RTGS). Write a cheque, provide the amount which also includes the nominal bank fees, (as informed).
- Go to the bank and deposit the cash amount into the payee’s account directly.
How to Transfer Money Between Two Different Banks via Online Mode?
If you are in a business or situation where you are in constant need of transferring money on an immediate basis, then online money transfer is another way to get your task done in minutes or less. Online mode of fund transfer is now a common and convenient way to transfer money from one bank to another.
Netbanking is generally free of cost at certain banks (online or traditional banks). However, some banks do charge for their service.
Before getting started with the online process of money transfer, you need to set-up a link between the two accounts you have at two different banks — the one from which the money will be sent to the one which will receive the fund.
1. Set-up Link Between the Paired Accounts
Log in to your first bank’s mobile app or its website. Next, select the money transfer option. There will be choices for both internal and external fund transfer. Internal transfer happens within the two accounts of the same bank, whereas external transfer happens between the accounts of two different banks.
2. Provide Credentials of the External Account
Provide details of the bank account number (where the fund is to be transferred) along with the bank routing number. You can generally find these details from a printed paper cheque or a bank statement.
3. Confirm the New Account
After putting the required bank credentials, the first bank will require verification, so that you can gain access to the second bank’s account. You will be instructed to put the username and its password, which would be then verified by the first bank. The secondary way by which the first bank can confirm the account is to deposit a small amount and then confirm the amounts. This procedure could take a few days’ time to complete.
4. Set Up Transfers
As the account is confirmed, set-up the transfer from the sender’s bank website. Select the receiver and sender accounts, and enter the transferable amount along with the date when the transaction will occur. From there, you will find the expected date of receiving the fund in the receiver account. Plus, you will be required to select the recurring transfer (once in a week, for instance), or one-time transaction. After making all the settings, hit the submit option.
Well, that’s all about the entire processing of transferring money from one account to another account within the same or different banks.