Article summary
Online bank transfers are a convenient and quick method of sending money to family and friends. There are several ways to do this and many ways to pay, but with so much choice it can be hard to know where to start, or what methods might be best for you.
Whether you’re moving money to loved ones internationally, paying tradespeople, or gifting a friend in the next town, there are plenty of options for you. Make sending money online easier for yourself, by understanding the different options available to you and the benefits.
In this article
What is an online bank transfer?
Online bank transfers are the electronic transfer of money from one bank account to another. These cover a variety of platforms, such as your banking institution, payment apps, wire transfers, and money transfer companies like Western Union. It’s even possible to transfer cash to an online bank account if you don’t have one yourself.
Each platform offers different positives and negatives. Understanding these is important to decide which options are best for you. Some things to consider are:
- Delivery times – especially on money transfers made internationally.
- Exchange rates – these can differ between services.
- Transfer times – some methods will take longer.
- Estimates – certain platforms will give estimates on delivery times, transfer fees and exchange rates.
- Destinations – some services don’t cover every country or bank account.
- Receipt – if your receiver doesn’t have a bank account, some providers can offer alternative methods of receipt.
- Fees – certain services can cost more than others.
These are just some of the different factors to be aware of when you’re looking to move your money. So, now you know what to look out for, what are the options available to you?
The different ways to send money online
Choosing the right method for your online money transfer is important. Here’s a breakdown of the different ways to send money online:
Online bank transfer
Online bank transfers are an electronic form of money transfer from one bank account to another. If you’re transferring money domestically, or within the EEA, these are usually cheap (if not free), quick and easy to do. However, international transfers can take longer, or incur some fees.
Mobile wallet
Mobile wallets are rapidly gaining in popularity. However, they come with their own fees so it’s important to do your research. There are several wallet brands, so you may find yourself needing multiple apps to make the most out of them. They do offer some convenient methods of money transfer. But if you’re transferring to less technologically inclined loved ones then you may find these difficult to use. One of the key benefits of money transfers between mobile wallets is that they can be almost instant.
Money transfer company
Money transfer companies can be a good choice, especially for international money transfers. Fees are included, though most reputable money transfer companies should provide transparent breakdowns and estimates.
For example, with Western Union you can get full breakdowns before you commit to a money transfer. These companies also offer multiple options of payment and receipt, without you having to look around.
