Bank transfers are the most common transactions that everyone makes. You need it to pay a bill, send money to your friend, pay tuition, etc. But what information do you need for a bank transfer to be successful? This article will show you.
What Is A Bank Transfer?
It simply means sending money from one bank account to another. You can send it domestically or internationally.
Most people don’t hold a significant amount of cash at hand. Hence, transferring funds via a bank is preferable when it’s time to pay for something. Financial institutions offer convenience and help protect your funds, which you can use anytime.
Information Needed For A Domestic Transfer
This type falls into two categories; internal and external. The former implies sending money within the same banking institution, while the latter implies transferring from one institution to another.
To send funds internally or externally, you’ll need
- The name of the recipient
- The recipient’s account number
- State the amount you want to transfer
You can send funds from your banking app or visit the physical branch and pick up a transfer slip.
Information Needed For A Foreign Transfer
Most foreign payments go through the SWIFT network, or SEPA if you live within the Eurozone.
The bank transfer details needed for a SWIFT payment include:
- The full name of the account holder
- The full name of the recipient’s bank
- The recipient’s account number
- The Bank Identifier Code, or SWIFT code, of the receiving banking institution
The details for a SEPA payment include
- The recipient’s full name and account number
- The recipient’s International Bank Account Number (IBAN)
What Is SWIFT?
So, what is SWIFT? It stands for Society for Worldwide Interbank Financial Telecommunications. It is the standard messaging system that financial institutions use to exchange instructions.
When you send funds via the SWIFT network, your banking institution will send a message to the recipient’s institution to deposit funds in their account. Once the deposit is confirmed, your banking institution removes the equivalent sum from your account.
What Is SEPA?
It stands for Single Euro Payments Area. It’s an alternative to SWIFT developed by the European Union (EU). It covers 36 countries in Europe and works only for euro payments.
SEPA payments are usually faster than SWIFT payments. However, the latter is used by most banks across the world, while the former only works in Europe and for one currency.
How Long Do Transfers Take?
It depends on the type. Internal transfers between the same bank are usually instant. External transfers between domestic banks can take a few minutes or hours to settle. However, foreign transfers usually take up to five working days to settle.
In some cases, foreign transfers will pass through several intermediary banks before reaching the final destination, meaning it takes longer. Likewise, foreign transfers to some countries, e.g., Cuba and Afghanistan, take longer than others.
How Much Does It Cost To Send Money?
It varies. Internal transfers usually come at no charge, while external transfers within the same country carry little fees. However, foreign wire transfers can cost a significant amount; expect a fee of between $20 to $50 per transfer, or more in some cases. The recipient may also pay fees for receiving the funds.
Bank transfers are the easiest way to send funds from one person to another. It makes everyday transactions very convenient, as you don’t need to hold a significant amount of cash with you at all times. We have explained what information you need to transfer money domestically or internationally. We also explained how long transfers take and how much you should expect to pay for it.