You probably already know how to transfer money between your checking and savings accounts, but what happens when you need to give money to a family member or friend?
Moving money between your own accounts is simple, especially with online and mobile banking options. You select the account you want to move money from, decide how much to transfer, and then select which account to put that money in. By asking your financial institution about the process, there are even easy ways to transfer funds between your accounts at different financial institutions.
But what happens if you want to add money to a child or parent’s account or need to pay a friend for your portion of dinner? It can be almost as easy as paying yourself, especially if you use online or mobile banking.
Many financial institutions offer a person-to-person payment option, where all you’ll need to know to get started is the recipient’s mobile number or email address. With this method, you can use either a computer or mobile device to send money to someone’s account 24 hours a day. It’s quick and easy. If your institution doesn’t offer this payment option, there are apps that you can download to use to do the same thing. You will just need to spend a little time getting them set up with the right information.
If you don’t use online banking, another way of giving someone money is by writing them a check and having it deposited into their account. Cash is also an option but some institutions no longer allow people to directly deposit cash into another person’s account.
For larger amounts of money, your options can include a wire transfer, which is an electronic way of moving money from one account to another. Be aware, however, that this method is likely to come with a fee.
Another way to transfer money between accounts includes being a joint account owner. With this method, you can transfer money between the jointly owned accounts but you and anyone else associated with the account will need to be aware that any of the other owners can access the funds. With this arrangement, it’s important to trust the other owners to do the right thing.
It’s great to know you have options for getting money to other people, and it’s up to you to decide which method is right for you.
Check with your financial institution about what it offers and be sure to ask them any questions you might have. They’ll be happy to get you started on the right foot.