Imagine you get a call from a loved one who urgently needs you to send them some money. Or perhaps you found your dream home, but to secure it, you’ve got to transfer the funds within 24 hours. In both cases, you’re faced with the same question: wire transfer or bank transfer?
Time is ticking, and choosing the wrong type of transfer can cost you time and money.
Remitly doesn’t want you to lose out in either scenario—instead, we want to help you manage your money in the most efficient way possible.
Lots of people use bank and wire transfers interchangeably, but they aren’t identical, and making the wrong choice can cause extra stress you don’t need.
Our newest guide breaks down what wire and bank transfers are, so you can understand key differences and how to choose which method of transfer is best for you.
What exactly is a wire transfer?
A wire transfer is a direct electronic transfer of funds between banks. It uses secure messaging systems such as SWIFT or Fedwire to move money quickly and reliably.
Wire transfers are used daily by private citizens and businesses across the globe. It’s one of the most common forms of transferring money, despite the higher fees, especially when you need to send money abroad.
In fact, they’re so common, we hardly ever think about them. But understanding these common types of transfers is one of the first steps in managing and saving yourself money—especially if you’re trying to budget better.
How wire transfers work
The process is straightforward, but heavily regulated to protect both consumers and businesses.
What you’ll need to send a wire:
- Recipient’s banking details
- Account number
- Routing number
- IBAN and SWIFT codes for international transfers
- Recipient’s full address might also be requested for international or larger transfers.
Once all necessary information is provided, your bank will prompt you to verify and add any necessary reference details before completing your end of the transfer.
Once submitted, your bank verifies the request and sends the payment instructions through a secure network. The receiving bank then credits the funds to the recipient’s account, often the same day.
What is a bank transfer?
A bank transfer also moves funds electronically to different accounts, and while it’s still as secure as a wire, it runs slightly differently.
Most regular bank transfers work in batches rather than in real time. This means it may take one to three business days; however, it can take less. For instance, internal bank transfers from your checking account to your savings account, or vice versa, can be made in seconds.
Because transfers are done in batches, your bank will also have a cut-off time and will not make any transfers during weekends or holidays.
In most cases, you only need the recipient’s account and routing numbers for these transfers. However, if you’re sending money abroad via bank transfer, you’ll need to provide additional information like SWIFT codes and the recipient’s address.
Types of bank transfers
Even bank transfers come in several forms:
- ACH transfers—these include direct deposits, automated or monthly payments.
- Internal bank transfers—money moved between your personal checking and savings accounts.
- P2P via bank apps—for peer-to-peer, banks like Bank of America work with Zelle to allow you to send money instantly to friends and family.
Key differences: wire vs. bank
We can get used to pressing buttons and having our money go where it needs to, without thinking much about it at all—so it’s easy to let everyday tasks happen without taking a deeper look.
But the differences in speed, cost, and flexibility when it comes to wire and bank transfers can make all the difference when facing emergencies or wanting to save on fees.
Speed and processing time
Wire transfers can be the speedier route as they are sent in real time. Direct bank-to-bank communication can often arrive on the same day, especially for domestic transfers.
It’s also important to remember that just because it can take up to five business days for the transfer to clear, it doesn’t mean it will.
What wire transfers do best are large transfers and international ones.
Bank transfers, on the other hand, rely on batch processing, which means it can take one to three business days and often have limits on how much and how far you can send them.
Here’s a breakdown for a few popular banks and their processing times:
| Bank | Domestic Wire Processing Time | International Wire Transfer Processing Time | Bank Transfer Processing Time |
| Bank of America | Cut-off time: 5 p.m. to arrive same day | 1-5 business days | 1-3 business days |
| Chase | Within 24 hours | 1-5 business days | 2-3 business days |
| Citibank | Within 24 hours | 1-5 business days | 1-2 business days |
Cost comparison
Wires do have higher fees and are subject to exchange rates when sending internationally.
However, if you’re a Chase private client, for instance, you may have fees waived when sending certain amounts or transferring money internationally. Check your individual bank for their rules.
For bank transfers, most banks thankfully waive or only charge small fees to transfer funds.
Security rules
Both transfer options are secure, but wires can be less forgiving—especially when sending money internationally. Once a wire transfer is complete and the funds are released to the receiving bank, it’s almost always irreversible.
The SWIFT network and banks handle payments across different systems, which also include a wide range of rates and fees that are locked in the moment you send the transfer. Undoing that is like undoing tangled yarn—the process is often too complex, once the wheels are in motion.
However, in cases of fraud or with the recipient’s cooperation, you can appeal the process to have it reversed—but there are no guarantees.
Which transfer is best—wire or bank?
Knowing when to use a wire or bank transfer comes down to timing and urgency. There’s not much reason to incur extra fees for sending your rent as a wire transfer unless your payment is late.
Understanding your needs will help you choose the right transfer for you.
When to use a wire transfer
Here are some common uses for wire transfers and why they can be a great option:
- Real estate closings or other larger purchases
- International business payments
- Emergency transfers/time is limited
When to use a bank transfer
For bank transfers, daily or monthly payments are best:
- Rental payments
- Monthly bill payments like utilities or subscriptions
- Moving money between your checking and savings accounts
How to safely transfer your money, no matter the method
Regardless of your transfer method, always consider the provider or institution you’re choosing to transfer with. No one wants to be the victim of scammers and fraudsters, which is why we create guides like these to keep our readers informed and understand how to make the best financial choices.
Be especially wary if you’ve received any messages demanding money to be sent quickly, as this is a common tactic in scams. Trusted institutions have methods to ensure you don’t become a victim of fraud. Contact your bank or provider directly if you suspect anything is wrong.
To avoid the dreaded irreversible wire transfer, reduce risks by double-checking your recipient’s details before confirming the transaction. Incorrect account numbers or SWIFT codes can hold up your transfer or land your money in the wrong account.
Many banks can flag when an account number or routing number is a mismatch to the other details provided, but this is not foolproof, so a little diligence can go a long way in keeping your money safe.
Alternative options to consider
While sending money through your bank can be convenient—it’s not the only option.
Alternatives to traditional banking can often save you on fees and get you the best currency exchange rates when sending money abroad.
This is certainly worth considering if you’re transferring money frequently, whether domestically or internationally.
With Remitly, you’ll find lower fees, better exchange rates than most larger banks, and the ability to complete transfers in minutes with Remitly Express. All the same information is required, and security remains a top priority—but you’ll also get more value for your money compared to your regular bank.
At Remitly, our focus is on our clients and offering the best transactions possible, especially when sending remittances worldwide to help family and loved ones who need the extra support.
That said, not every scenario is a good fit, but that’s why we’re here to inform you of all your options. Legal transactions like real estate closings still require wire transfers, and many times, oversight from traditional banks is not only preferred but insisted upon.
But if you’re in need of alternatives because you’re no longer able to afford the high fees of more traditional institutions, apps like Remitly are great providers to consider.
Transfer your money with peace of mind
Both wire transfers and bank transfers are reliable ways to move money, just don’t forget they serve different purposes—choosing the right one can be just as important as getting your money where it needs to go.
Wire transfers can be speedy, especially if you need to send the money abroad and time is of the essence, but they can also cost more.
Consider urgency, cost and purpose before hitting send to ensure you’re managing your money and making the most of your transfer—no one wants to lose a ton of cash to fees and hefty exchange rates.
Want to learn more about transfers and managing your money? Check out our other resources in personal finance and money transfers!
FAQ
How long does a wire transfer take compared to a bank transfer?
Wire transfers are usually faster because the money is sent in real-time, whereas bank transfers are processed in batches at specific times of the day.
Are wire transfers more expensive than bank transfers?
Wire transfers can be more expensive depending on where they’re sent, with some banks charging up to $50 USD per transfer. Bank transfers are usually free or have a small fee.
Can I cancel a wire transfer after sending it?
If done immediately, there might be a chance to cancel the transaction, but wire transfers are generally very difficult to reverse, especially international wires.
Which is safer: wire or bank transfer?
Both types of transfers are safe and secure, but bank transfers provide consumers with more protection, including the option of reversal.
Do I need special information for international wire transfers?
International transfers require the recipient’s full banking details, including SWIFT codes, and may even require their full address.