A review of the different money transfers options for electronically transferring funds for business or personal accounts
Whether you are a business, entrepreneur or individual, you need to know the basics of transferring money from one bank account to another. Depending on the type of transfer you want to make, different types of money transfer services are available. Each one serves a unique purpose.
What Is Electronic Fund Transfer (EFT)?
The first type of money transfer service is electronic fund transfer. This allows one person to electronically transfer funds from their bank account to another person’s bank account. You can do this in a few different ways, including online and with a smartphone app or telephone banking. Depending on your country and financial institution, you may even be able to make an EFT through cash if you have a checking account linked to your debit card.
The following list explains how each type of service works and how it differs from other services on the market. With this information in hand, you’ll be able to decide which kind of service will work best for your needs and your financial situation.
With a separate bank account, each person has access to their funds. Many couples choose to open individual accounts because they want to keep their money separate; some even go so far as to use debit cards with different PINs. When there are joint accounts, it is easier for either spouse to spend money without consulting their partner. Some couples decide that one person will be in charge of day-to-day finances and bill payments. The other spouse then pays these bills from their separate account.
What Are Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT)?
Immediate Payment Service (IMPS) is a real-time electronic interbank electronic funds transfer system. It is an alternative to paper checks, drafts, and telegraphic transfers. This service allows individuals or businesses to send and receive the money within seconds through mobile phones or Internet banking. According to experts at SoFi, The National Electronic Funds Transfer (NEFT) scheme facilitates one-to-one funds transfer through a network of participating banks in India that connects via a dedicated digital communication network.
Each method has its advantages and disadvantages. So when you’re looking to transfer money from one account to another, it’s a good idea to consider your options carefully before you make your decision.
Money Transfer Options for Couples
Joint bank accounts and personal bank accounts can be an important part of the financial planning for married couples. However, there are other considerations for individuals who aren’t married when handling money and keeping track of their spending. While there are many financial and legal reasons for having a joint bank account, it might be worth having separate bank accounts in marriage.
Although, technically speaking, online transfers may be counted as a separate type because they don’t necessarily have to go through banks at all times. They are simply different ways to transfer money from one account to another. All that matters is that you understand how each method works and if it is suitable for your particular needs or not.
