The banking sector plays a central role when it comes to money transfers. Banks are involved in the regular payment of salaries and other daily transactions of the economy.
They are also involved in fund transfer to various sectors of the economy like infrastructure, small businesses, and individuals. Banks are also involved in funding various projects and programs that are vital for the country’s development. So, if you have been wondering how to transfer money from one bank to another or how long it takes to transfer the money, read on.
Bank-to-Bank Transfers
The bank-to-bank transfer allows the funds to be transferred to the intended recipient’s account in another country. As a rule of thumb, banks can transfer funds from one account to another within seconds or even minutes, depending on the size of both accounts involved. It is believed that banks can transfer money within 1 hour if both parties are ready to transact. Other factors that affect how long it takes for banks to transfer funds are:
Bank Transfer Limit
It is important to note that most banks have transfer limits set by them, depending on your account size. You should be aware that once your bank has reached its maximum transaction limit, you will not be able to do any further transactions with that bank for 2-3 days or even longer, depending on your bank’s policy.
Time of the Transaction
Most banks do not work at full capacity on holidays and the weekends. They are closed during these times, so it takes longer to transfer funds. For instance, if you transact on a Saturday or Sunday, it will take longer for your transaction to be cleared.
Transaction Time
Each bank has its own set of rules and regulations for the time it takes to process a transaction. For instance, some banks wait up to 30 minutes while others wait up to 12 hours. Some banks may close their accounts during the night and do not process transactions until the morning.
International Bank Transfers
The time it takes for international money transfers to clear can be anywhere from 3-5 business days. This is because most banks are located in different countries and must process the transactions from these countries.
Most international bank transfers are processed through the US Federal Reserve System, an independent organization. The Fed has a maximum limit on how many daily transactions they will process. This means that you may not be able to use your bank’s international wire transfer service if they are not able to process your transaction within the amount of time they have set. As per the experts at SoFi, “Transferred funds typically arrive at their destination in two or three business days.”
Another factor that may prolong the duration of bank transfers is the currency exchange rates. Getting a reasonable exchange rate may be difficult if your bank is based in the US.
Bank transfers are one of the most convenient ways to move money worldwide. However, they have their drawbacks. While they are straightforward to use, they can take longer than other money transfer methods, such as using a debit or credit card or a wire transfer service.
