How to transfer money between banks can be done in a number of ways. With growing and more complex scamming systems, being mindful of how you transfer your money can make it safer, and even cheaper.
To start with, when transferring money between banks you will need:
- Your bank and account details you wish to transfer from.
- The bank and account details you wish to transfer to.
Is the transfer domestic or foreign?
If foreign you will require:
- IBAN number
- SWIFT code
- Or both
Depending when you need the funds to be available in the beneficiary’s bank account and the costs involved can determine the choice you make.
Using a bank wire transfer is seen as the most pragmatic and fastest way of sending money between banks especially internationally.
It involves contacting your bank and requesting the amount you wish to send to what bank and to whom and for when.
For international wire transfers your bank via SWIFT will send a secure message to the recipient bank requesting transfer according to your instructions.
Transfers vary to a few hours to even a few days before funds are made available.
This electronic service comes at a cost, different banks charge variable fees for doing wire transfers from sending the transfer and receiving the funds.
Using a cheque to transfer between banks is less costly than a wire transfer although requires a longer clearing period for funds to be available. You could be waiting up to 5 working days for a cheque to clear domestically.
However depositing international cheques can take up to weeks to clear! This is because the cheque deposited needs to be sent back to the issuing bank to be processed and verified to be cleared.
Not advisable if a large amount of money needs depositing. Nobody wants to be carrying a large amount of cash around with them as there are dangers involved.
Currency Transaction Risk
When transferring money to another bank in another currency you need to be aware of the currency exchange rates that can affect your funds.
It is important to take into account that currency exchange rates are fluctuating all the time. Since transfers are impending they are at risk of changes in the exchange rate.
How to hedge against this?
- Spot deal can guarantee you the rate at the present time when you need to make a quick transfer
- Forward contract enables you to fix the rate for up to two years. Ideal if you need to do regular transfers
RationalFX are the solution to transfer your money between banks domestically or internationally.
- We offer the hedging services such as spot deal and forward contract that best suit your needs and saves you money.
- We give you very competitive rates of exchange (to spot or forward) and we charge low fees for doing your transfer from one bank to another.
- Authorised by the FSA, we are a safe and secure way to make your transfer.
- We hold accounts of many different currencies and are highly experienced at doing any transfer that you may require.
- We take the hassle out of money transfers whether personal/business we make money transfers easy and most of all cheaper.
Experience the benefits! Register now!