Thursday, July 18, 2024

How to Transfer Money Using Routing Number and Account Number


There are various ways to transfer money from one person to another. When you send money to someone else, you transfer money from your account to their account. Banks and credit unions are the major financial institutions that most people rely on to transfer money. However, other platforms like PayPal, Payoneer, Venmo, Western Union, and MoneyGram. Today you will see how to transfer money using route number and account number.

Many financial institutions charge a fee for transfers. You may be wondering why they are charging money, but you need to know that this is how they make money. Most institutions do not charge you a fee if you send money to the same account. However, they still have other ways to make money for you. For example, some financial institutions have monthly payments, annual fees, and unemployment benefits.

Today, transferring money is much easier because of technological advances. You only need to use your smartphone or computer to create your online account, and you’re ready to go. Online versions are as good as you can get them whenever you want. In addition, it helps you to save time by calling your bank or credit bureaux.

Understanding Routing and Account Numbers

The route number is used within the United States banking system to identify a bank. Some large banks with multiple branches may have multiple route numbers. They are sometimes called ABA numbers, from the American Bankers Association – an industrialized group that has developed.

Your account number is issued by your bank, whether you have a checking account, a savings account, or another bank account. It is usually different for each account so that no one will have the same account number as you in your bank, and each of your accounts will have a different number. It is possible for performances in foreign banks to have the same account numbers, just as it is possible for people to have the same street name and number in different cities.

Remember that if you have a debit card associated with your account, the number on the bank card is not related to your account number or route number and cannot be used interchangeably.

Is the routing number different from an account number?  

You may be wondering how the two numbers differ from each other. However, there is a big difference between the route number and the account number.

First, the route number separates one bank from the other. It helps if you transfer money from your bank to another bank using a routing number. On the other hand, the account number separates you from other customers in the same bank. Each customer must have their account number.

Second, the route number has nine digits. As I said earlier, you can find it in your check as the first set of digits found at the bottom of your statement from your left. The account number has 10-12 numbers and is an intermediate set of 12 digits.

Ways To Transfer Money Using Routing Number & Account Number

As discussed above, you may be asked to provide a route number and account number when making multiple purchases.

Bank to bank money transfer  

We often need to send money from one bank to another, especially if we do not use wallets or applications. In this case, you can physically visit the bank branch and make a transfer.

It may incur a few additional costs, but it will be safe, and you will need to provide an account number.

You can also use TransferWise, which is a service available in the US and abroad as well. It can contact you with local banks and assist you in making transfers utilizing several different currency types.

Another type of similar transfer was made using ATM money.

Visit a nearby place and withdraw money from an ATM.

visit the bank to deposit money into the recipient’s account

This will also require you to provide an account number.

This transfer method is very convenient but can take up to 2 days for the money to appear in another account. It applies to both domestic and international transactions.

Money transfer using check    

You can write a transfer check from your bank account to another. Another bank will use your check line and account numbers to request money from another account. When you write a review, you must have enough money in your bank account for the transfer to be successful. If not, the check will jump.

Remember that if you develop the habit of exchanging checks, you will find it challenging to open bank accounts with new banks or credit unions if your name goes into ChexSystems. It may take up to five years for your information to be verified by ChexSystems.

When writing a check, you can use the following format.

Step 1: Write the date of the check-in the top right corner.

Step 2: Write down the name of the person or company you are paying the check for. Please make sure the terms of the beneficiaries are the same as those in their ID. Also, you can write the word “cash” if you do not know the names of the beneficiaries. However, anyone can pick it up and remove it if the case is lost.

Step 3: Write down the amount of money you will pay in numbers.

Step 4: Write down the money you will pay in words. Make sure the value in terms is the same as the mathematical value. Otherwise, the check will jump.

Step 5: Write a detailed memo of why you made the payment. Depending on why you are writing the check, you can write an electricity bill, water bill payment, etc.

Step 6: Sign the check. This indicates that you agree with the bank concerned to take the stated amount into your bank account. If you do not sign, the review is invalid.

Using money order

Money order works like a check because you can withdraw it or deposit it in a bank account. When you send money by money order, you buy a paper with details of the money you will send. It has two signature spaces — one for you and the recipient.

You can pay your cash order using a check or debit card. You can also use your account and tracking numbers to purchase a money order from another bank. Money order works internally and externally. The following is the process of writing a money order.

  • Visit your bank or credit union with money, a bank card, or use your bank or credit union account to cover expenses.
  • Fill in your name and that of the beneficiary of the cash order. You must be willing to ensure everything is in order because you will not change the details later.
  • Keep a copy of the cash order receipt. It is usually a carbon copy of the original cash order.
  • You can then track the details of your cash order to ensure the recipient receives the money.

Bank To Prepaid Card Money Transfer

Reliable and reloaded cards are still handy today. You can recharge it and use it until the money runs out. Additionally, you can use your bank account to charge a prepaid bank card whenever needed.

This type of transfer is usually done online directly through your banking application or services such as PayPal or Skrill.

If you withdraw money from your bank account, you may need to visit a mobile branch first to activate that. Later, you can recharge the card online without any problems.

Withdraw Money Using Account Number and Routing Number

Withdrawing is straightforward. Let’s see how it works.

  • First, you need to get the required route and account numbers through your online account.
  • The route number is also printed on checks, but the account number setting may vary from one bank to another.
  • Next is to decide which company you wish to initiate ACH payment.
  • Enter the numbers and select the automatic default payment. Your bills will be deducted automatically every month.

If you pay your bills this way, it is best to start transferring a few days before the due date. This is because ACH can take up to 5 days, so you need to consider the processing time.