Updated on August 14, 2022
Checking accounts became important as soon as banking systems were set up. They make it easier to pay online and transfer money from one account to another.
You can instantly send money with checking account if you simply share recipient’s account information.
Easy money transfer has become need of the time. We all wish to do it shortest period of time and send money to our friends or relatives regardless of how far they are.
Checking accounts make this job a whole lot easier!
Since it is such an important thing, we will cover everything about setting up checking account to using its account number and routing number for sharing funds in this article.
What It Is And How You Can Send Money With Checking Account
Some of you may not know what a checking account is, so let’s start with that.
FYI! Simply put, having a checking account means being able to make deposits and withdrawals whenever you want.
High-yield savings accounts are essential while dealing with a financial crisis. Establishing and maintaining a positive banking past is crucial to their function.
Personal loans may be more affordable if you have a consistent and active bank account.
Having a checking account also has the added benefit of being able to check your balance online. The act of putting money in, taking money out, and sending money to others is really straightforward.
How Checking Account Works
Next, you must have a thorough understanding of how checking accounts work. It’s easy to deposit or swap money thanks to their convenience.
With a checking account, people can use an ATM, make electronic debits, and write checks to other people.
You should be aware that keeping your money in a checking account makes it almost liquid. When you utilise it, you don’t have to go through any hard or time-consuming processes to get started.
There is a big difference between a savings account and a checking account when it comes to how much money can be withdrawn each month.
Savings accounts have transaction limits, while checking accounts enable unrestricted withdrawals.
How To Send Money With Checking Account
The meatiest part of the article is now at our fingertips: detailed instructions on how to transmit cash from a checking or savings account.
There are a multitude of methods and modalities that can be used to complete this objective. If you have a bank account, here are three of the main ways to send money.
Sending Money Using a Bank Account Number
Using an account number to transfer funds is possible via both internet banking and branch visits.
First, pick “transfer cash” and then enter the user’s bank account information to send money online.
Make sure you provide the correct information for the recipient’s account or you might end up sending it to a wrong person.
Once you have entered the account number of the recipient, you can finalize the money transfer.
However, remember to check that you have sufficient funds in your account before sharing money or the transfer will be cancelled.
“Call to duty!” Within a same bank, it’s easier to transfer money to and from each other. The account number is all that’s needed. The account number and routing number must be included when sending money to a different bank.
You must link the two accounts together, regardless of whether you’re sharing inside the same bank or with a different bank. The deal would fall through if such were the case.
Send Money To Bank Account
Transferring money to bank account is quite simple as long as you have enough fund to make the transaction.
There are only few banks that allow you to overdraft and pay back the money later. This feature is not offered by all banking services.
Note! It is never a good idea to overdraft. This is because your bank may allow you to perform this action but it will almost always charge a high fee for doing so.
It is, however, a different story if you own a reliable credit card that lets you take out money from the credit limit and refund later. This action often does not incur extra charges.
You can also use a cheque to send money to your bank account. This method is often utilized in businesses where customers make cheque payment that you can take up to your bank and deposit the funds there.
The process is instant and fool-proof. However, it can take up to 3 weeks for the money to be transferred.
Methods to send money to your account when you are living abroad can be a bit different. You can use services like Money Gram or PayPal to make the transaction in this case.
Send Money Online From One Bank Account To Another
If you’re looking for a simple way to transfer money, you may want to consider using an internet service like PayPal.
Getting in a long line to deposit or withdraw money from a bank account is no longer necessary.
Online banking systems let you transfer money just with the use of internet. This is possible with all debit cards and good credit cards as well.
You just have to share your PIN and the recipient’s account number. When using services like PayPal or Payoneer, you might also have to enter recipient’s email ID.
If you make money transfer using a debit card, the funds will be deducted from your account immediately.
In case of a credit card use, the bank will pay on your behalf but you have to pay back the money later on typically with an APR amount.
Some More Information About Checking Accounts
So this was all you should know about transferring money with checking account. Now before we wind up this article, there are some important pointers you should be aware of when it comes to creating and using a checking account.
How To Open a Checking Account
A checking account application is as simple as submitting a credit card application online!
Visit your bank of choice and check out their account opening terms and conditions, including any fees that may apply.
Note! You also have to check whether you need to make an initial deposit or not and what is the minimum balance requirement for the bank.
Once you have obtained all the information, you have to provide the required identification documents and open the account.
All of this can be done online but just make sure that you are using a safe internet service that does not leak your personal information.
When your checking account is opened, it is always a good idea to get the associated debit card or credit card.
This makes it easier to share money online and also helps to withdraw money at an ATM.
Expenses Of Keeping a Checking Account
A checking account can usually be opened for no cost. As a result, some financial firms may need a fee to start an account. You won’t be paying more than $25 for this!
A luxury bank account may cost you up to many hundred dollars. Before opening an account, check to see if there are any additional costs or minimum balance criteria that must be met.
Attention! Banks that have a minimum balance requirement will charge you if your account balance falls below a certain value.
If you think that maintaining a checking account can get expensive for you, keep in mind that it is not your only option to send and receive money.
You can always opt for reloadable prepaid cards that allow you to share funds across the globe.
How Long Does Money Transfer With Checking Account Takes
The time it takes to transfer the money depends on whether you are sharing funds within the same bank network or a different one. In case of same bank, the transfer may take only an hour or even just a minute.
Bank transfer to a different network can take a couple of days. The transaction fees are also a bit higher in this case.
Therefore, this sort of transfer is never suitable if you want the recipient to receive the money instantly.
How Checking Accounts Without Initial Deposit Work?
Although this is not possible with all sorts of banking systems, some of them will allow you to open a checking account without making any deposit at the start.
Luckily, these banks also do not have any cap on minimum balance requirement.
This means you can open an account with just a small amount of money and operate the account with all features and benefits. Some of the common banks that allow this includes:
Capital One Bank
- Discover Bank
- Ally Bank
- Bank of USA
- Charles Schwab Bank
Best Options If You Wish To Open Free Checking Accounts
- Free checking accounts are available at numerous banks. Since most of these institutions don’t use ChexSystems, opening an account there is a lot simpler.When it comes to opening a checking account with an inconsistent financial history, BBVA is one of the most reliable solutions.Additionally, TD Bank, Empower Interest Checking, Chime Deposit, Varo Bank Accounts, etc.This is not the only benefit of banking with these institutions: You can also use their credit and debit cards to withdraw and transfer money. MasterCard, Visa, and American Express are three of the most popular electronic payment services..
Best Options If You Want Checking Accounts With Bad Credit
- Poor credit history can make it quite difficult for someone to manage finances. Luckily there are checking account for bad credit that report to credit bureaus as well and can help you improve your relationship with banking institutes.There is no need to worry since there are stores that let you shop with bad credit but relying on banks is a good way to improve your finances over time.You just have to find out the right places that can be helpful in this case. Consider looking into BBVA, Fifth Third Express Banking, One United Bank, American Credit Union, etc.
- Checking accounts are easy to open and they are convenient to use as well. When you have to frequently transfer money from one account to another, such accounts can really simplify your work.Checking accounts ensure you are not limited with money deposit and withdrawal unlike savings account. Hopefully, this article would help you in opening your new account and then using it to share funds. Best of Luck!