How to Transfer Money Between Banks Online (For Free)

Say you want to move money from one bank account to another account at a completely different bank. Sure you could use a wire transfer, but those cost money. There is a safe, free way to transferring money between bank accounts online, and you might even already use it: It's called Paypal.

Instructions

1. 

   If you don't already have a Paypal account, you can set one up for free. It's similar to most other bank accounts online, with the exception that it's all digital. Your money is even protected by FDIC pass-through insurance. Go to Paypal.com and click the "Sign up" link to get started.

2. 

   Once you're logged in, go to the "Profile" tab and click "Add or Edit Bank Account". Click on the "Add Bank" button and fill out the information of the bank you want to transfer money from. You're going to need to know if it's a checking or savings account, the routing number, and the bank number. When you're done click the "Continue" button. Repeat this step for the bank account you want to transfer into. When you're done, you should have the information for both bank accounts online in your Profile page.

3. 

   Simply entering the information isn't enough to actually get the bank accounts online to transfer funds - you also need to confirm the accounts. You may be asked to do this step as you're setting up each account. There are one or two ways to verify the accounts. You can verify the bank accounts online by logging into your bank (which the site will walk you through). You can also allow the site to deposit two small amounts into the account and then later click the "Confirm Bank Account" link on the Account Summary page to tell them what the amounts were.

4. 

   Now that you've finally got your bank accounts online with the service, go to "Add Funds" and select "Add Funds from Bank Account". Select the amount you want to transfer, and click "Continue". On the next page, verify the transfer. Note that it may take several days to move the funds into Paypal.

5. 

   Once the funds are transferred in, log back in to site. Go to "Withdraw" and select "Transfer to Bank Account". It will list your balance and a drop down will all the available bank accounts online. Type in the amount you want to transfer and select the account. Click the "Continue" button and verify the transfer. The funds are usually moved within 2-4 days. See? That didn't cost a thing.

Tips & Warnings

• Most bank accounts online are protected with FDIC insurance. FDIC pass-through works a little differently. Before signing up for anything, you may want to read up on the insurance at the link bellow.

Resources

• Open Bank Accounts Online