If you need to move a large amount of money, you may envision yourself toting around a Monopoly Man-esque bag of money, looking over your shoulder to make sure no one is after your booty. While this method might be comical and, to a certain extent, effective, it is by no means the best way to do a money transfer.
Whether you need to complete a transfer between your own accounts at the same or different banks, send money to a loved one in another state, or get paid overseas, there are a number of options to safely and effectively transfer your money that don’t involve Monopoly Man duffle bags.
ATM Withdrawal
Why isn’t simply taking money out of the ATM and depositing the cash into a new account a good method to complete a money transfer? Well, ATMs can be convenient and, if you use an ATM linked to your bank, you can withdraw money for free.
If you can safely withdraw and transport a large sum of funds from your bank’s ATM, this could be a potential way to transfer money, although this plan will not work in all scenarios. Time, inconvenience, and logistical hurdles can often make this method impossible to use.
Withdrawing cash from the ATM and depositing it in the bank may require an afternoon or, if your bank has daily withdrawal limits, even several days to complete. If you need to transfer the money to another country or to an account in a bank that doesn’t have branches in your city, this method may not work. Safety reasons and withdrawal fees are other reasons why this method may not work well.
Bank transfers
Whether you use online banking or visit your teller to complete transactions, your bank can help you complete money transfers at the same bank or to other institutions. Your bank can help you set up a wire transfer; an electronic exchange of one client’s existing funds to another account, bank or other institution.
Wire transfers can be very convenient and flexible, allowing you to send money to yourself or others across different institutions, states/provinces and even countries. They are also safer, since physical money is never exchanged.
Bank transfers are also oftentimes more convenient, because the only information you will need to transfer money is your own bank information and the recipient’s legal name, sometimes their ID number, and bank account number. With this information, you simply indicate the amount you wish to transfer online or with the teller and to whom.
The drawbacks of bank transfers are fees and wait times. Some transfers can take several business days to be completed because of review processes and banks can sometimes charge a fairly hefty fee for transfers (especially if they are overseas).
Money transfer services
Money transfer services are another convenient, reliable, and often fast option to facilitate money sending. Services like Western Union and MoneyGram are popular services available online and in many locations around the world. These services calculate the rate they charge users typically based on the amount sent, the location from which and to which the money is sent, and the transfer speed.
International exchange rates and in-person vs. online fees may also be calculated into the figure. While these options can also be expensive, their reliability and convenience may help you out in a jam. Typically, to use an in-person or online service, the only information you’ll need is your ID and bank information or cash as well as the recipient’s legal name, ID number, and location.
Money transfer apps and E-services
Popular especially amongst millennials, apps and e-services can also provide a convenient way to transfer cash. They are often used to transfer small sums of money (e.g. to spot your roommate for gas money or split a restaurant bill with your friends), although they can also be used to transfer larger amounts.
After linking a credit or debit card with your account, users can transfer money to one another. These platforms are easy to download and their system is quite convenient if your recipient already has an account. However, the downsides related to using them are related to its limited area of use and security concerns. Phone theft and hacking are issues to be aware of when considering using these apps.
The bottom line
While stalking around like the Monopoly Man might sound like a humorous way to transfer money, it’s important to consider safety, convenience, speed, and transaction fees when deciding how to complete a money transfer. Knowing how to move and manage your money is key to developing a healthy financial future.
Here at Academy, we want to equip you with the best information available to help you make smart financial decisions. When you need to complete a money transfer, consider bank transfers, apps, online options, and money transfer services.
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