When you need to move money between your own bank accounts or to someone who banks at a different financial institution, you have a variety of options. Some methods are fast, free and easy, while others might require more time or incur higher fees. What’s important is that you weigh your needs against the options available to you.
Online and mobile banking are the quickest ways to transfer funds. To get started, log in to your bank account, select the option for making a payment and follow the instructions. The process should be simple and straightforward, with the only requirement being that you have the correct details for the person or business to whom you’re transferring. You may need to know the date you want the payment to be made, the name of the person or business, their six-digit sort code and their eight-digit account number. In addition, you’ll often need a payment reference (often your name or customer number) to let the recipient know who sent them the money.
You can also send money to another bank by using a wire transfer, which is the most secure way to transfer large amounts. This type of transfer involves sending information about the sender, their bank and the recipient bank to the receiving bank, which then deposits the funds into the recipient’s account. There are fees associated with this type of transfer, and you might need to provide additional documentation or a proof of identity to complete the transaction.
If you’re transferring money to an account in a different country, your bank will likely charge a fee and apply its own exchange rate. However, there are several third-party money transfer services that can provide better rates and lower fees than your bank, such as OFX. They’re especially good if you need to send larger amounts or are regularly making international payments.
To make a transfer, you’ll need the recipient’s bank information, including their BIC or SWIFT code. You can find out this information by asking the recipient or searching online for a BIC or SWIFT code finder. You’ll also need the amount you’re transferring and the currency you want the recipient to receive. If you’re transferring to a foreign bank, your bank will add its own conversion and processing fees in addition to those charged by the third-party provider.
To make the best decision on how to transfer your funds, Oppenheimer recommends researching each provider’s fees and exchange rates. It’s important to compare these rates, as they can fluctuate over time. Once you’ve chosen a service, be sure to revisit it frequently and compare its rates and features against other options. That way, you’ll be able to ensure you’re getting the most for your money. For example, some services will allow you to lock in an exchange rate for up to a year, which can help you save on currency conversions over time. That feature alone can make a significant difference in the total cost of your transfer.