Yes, you can transfer money from a savings account to another bank
You can move money from a savings account at one bank to a savings account, checking account, or money market account at a different bank. The transfer happens through one of three methods: an ACH transfer (automated clearing house), a wire transfer, or an external transfer set up through your current bank's website or app. Each method takes a different amount of time and may have different fees.
The bank holding your savings account does not prevent you from sending money elsewhere. You own the money in that account, and you can move it whenever you want. The receiving bank will accept the deposit as long as you provide the correct account and routing information.
Key Takeaways
- ACH transfers are free or low-cost and take one to three business days, making them the most common choice for moving money between banks.
- Wire transfers move money the same day or next business day but typically cost $15 to $30 and cannot be reversed once sent.
- You can initiate a transfer from your current bank's website, app, or by phone, or you can ask the receiving bank to pull the money using your account details.
- The receiving bank needs your account number and routing number; the sending bank needs the receiving bank's routing number and your account details there.
- Some banks limit how much you can transfer in a single transaction or per day, so check your account terms before moving a large sum.
ACH transfers: the standard method for most people
An ACH transfer is the most common way to move money between banks. The Federal Reserve operates the ACH network, which processes transfers between financial institutions. When you initiate an ACH transfer, your bank sends an electronic instruction to the receiving bank, and the money arrives in one to three business days.
ACH transfers are free at most banks, though some charge a small fee—usually $0 to $10. You can set up an ACH transfer through your bank's website or mobile app by entering the receiving bank's routing number and your account number at that bank. You can also call your bank and request the transfer over the phone.
The delay happens because ACH transfers batch process overnight. If you send a transfer on a Tuesday morning, it may not leave your bank until Tuesday night, arrive at the receiving bank Wednesday, and post to your account Thursday. Weekends and holidays add extra days. If you need the money faster, a wire transfer is the alternative.
Wire transfers: same-day or next-day delivery at a cost
A wire transfer moves money the same business day or the next business day, depending on what time you send it and whether the receiving bank processes it immediately. Wire transfers cost more than ACH transfers—typically $15 to $30 per transfer—because they move through a separate network (SWIFT for international transfers, or the Federal Reserve's wire system for domestic ones).
Once you send a wire transfer, you cannot cancel or reverse it. The money leaves your account and goes to the receiving account. If you send it to the wrong account by mistake, you will have to contact the receiving bank and ask them to return it, which they may or may not do. For this reason, wire transfers are best used when you are certain of the receiving account details and the receiving bank.
To send a wire transfer, call your bank or visit a branch in person. Most banks do not allow wire transfers through their website or app for security reasons. You will need to provide the receiving bank's name, routing number, your account number at that bank, and sometimes the receiving bank's SWIFT code if it is international.
External transfers through your bank's app or website
Most banks let you set up an external transfer directly through their website or mobile app. This is an ACH transfer initiated from your side. You enter the receiving bank's routing number and your account number there, give the transfer a name (like "Savings Transfer" or "New Bank"), and choose the amount and date.
The first time you set up an external transfer to a new bank, many institutions require you to verify the account. Your bank may deposit two small amounts (usually under $1 each) into the receiving account, and you will need to log into that account and confirm the amounts. This verification step takes one to two business days and prevents fraud. After verification, future transfers to that account are faster.
Some banks limit external transfers to a certain number per month or per day. Check your account agreement or call your bank to confirm the limits before you transfer a large amount or make multiple transfers in a short period.
Transfers initiated by the receiving bank
You do not have to initiate the transfer yourself. You can give the receiving bank your current bank's routing number and your savings account number, and ask them to pull the money from your account. This is called an ACH debit or a pull transfer.
The receiving bank will submit the request to your current bank, which will either approve or deny it. Most banks approve ACH debits from other banks as long as you have authorized them and have sufficient funds. The transfer still takes one to three business days because it goes through the same ACH network.
This method is useful if your current bank's website is down, if you do not have online access, or if you prefer not to log into your account to initiate the transfer yourself. The receiving bank handles the paperwork and timing.
Information you need before you transfer
To move money out of your savings account, you need the account number and routing number of the bank where you want the money to go. The routing number is a nine-digit code that identifies the bank within the ACH and wire networks. You can find it on a check from that bank, on the bank's website, or by calling the bank directly.
If you are transferring to an account at the same bank (for example, from savings to checking at the same institution), you usually only need your account number. The routing number is the same because both accounts are at the same bank.
Have the receiving account number and routing number correct before you send the transfer. If you enter the wrong account number, the money may go to someone else's account. If you enter the wrong routing number, the transfer may bounce back to your account after several days.
Transfer limits and holds
Federal Regulation D once limited savings account transfers to six per month, but that rule was suspended in 2020. However, individual banks may still impose their own limits on how many transfers you can make or how much you can transfer in a single transaction or per day. These limits vary by bank and account type.
Check your account agreement or log into your account to see what limits apply to you. If you need to transfer more than the limit allows, you can make multiple transfers over several days, or you can call your bank and ask whether they can raise the limit temporarily.
When money arrives at the receiving bank, it may be subject to a hold. A hold means the bank credits your account but does not let you withdraw the money for a set number of days. Holds typically last one to five business days and are more common for large transfers or transfers from banks the receiving bank does not recognize. Once the hold expires, the money is fully available.
What to do if a transfer does not arrive
If an ACH transfer does not arrive within three business days, contact your current bank first. Ask them to confirm that the transfer was sent and provide you with a confirmation number or reference number. They can also tell you whether the receiving bank rejected the transfer and why.
Common reasons for rejection include an incorrect account number, an incorrect routing number, or insufficient funds in your account at the time the transfer was processed. If the transfer was rejected, your bank will return the money to your account, usually within one to two business days.
If your bank confirms the transfer was sent but the receiving bank says it never arrived, ask your bank to file a trace. A trace is an investigation into where the money went. This can take up to ten business days. If the money is found in the wrong account, the receiving bank can attempt to recover it, though they cannot force the account holder to return it.
For wire transfers, contact your bank immediately if the money does not arrive the next business day. Wire transfers are harder to recover than ACH transfers, so speed matters. Your bank can attempt to recall the wire, but success depends on whether the receiving bank has already released the funds.
Frequently Asked Questions
Does transferring money to another bank close my savings account?
No. Transferring money out does not close your account. Your account remains open and active until you formally close it by contacting your bank. You can transfer money out and keep the account open, or you can close it afterward if you no longer need it.
Can I transfer money if my savings account is frozen or restricted?
No. If your account is frozen due to fraud, a legal hold, or a bank error, you cannot transfer money out until the freeze is lifted. Contact your bank to find out why the account is frozen and what steps are needed to unfreeze it.
Will I pay taxes on money I transfer to another bank?
No. Transferring your own money between your own accounts is not a taxable event. Taxes apply only to interest earned in the savings account, which you report on your tax return regardless of whether you transfer the money.
How long does it take to transfer money between two banks I own?
ACH transfers take one to three business days. Wire transfers take the same business day or next business day. The exact timing depends on what time you send the transfer and whether both banks process it immediately. Weekends and holidays add extra days to ACH transfers.
What happens if I transfer money to the wrong account?
Contact your bank immediately and provide them with the confirmation number for the transfer. If the transfer has not yet posted to the wrong account, your bank may be able to stop it. If it has posted, your bank can contact the receiving bank and ask them to return the money, but they cannot force the account holder to comply. For wire transfers, contact your bank right away, as reversals are harder and time-sensitive.