Use Electronic Bill Pay to Transfer Money to Another Bank? Archived From: Finance |
Has anyone ever setup a Bill Pay at bank "A" with the account number of your bank account at another bank "B"?
I think the benefit would be no loss of interest like there is with an ACH transfer since it is basiclly like cutting the payee, bank "B" account a check.
Has anyone ever done this? Is it allowed?
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It is not bill pay. Some banks called it account transfer, online transfer …
Depending on bank it can be free or bank will charge fee.
In most banks it is free for incoming transactions.
I understand Bill Pay not made for transfers.
My question is:
Has anyone ever used it for a transfer?
Yah I have made a transfer to my credit union and this every month using bill pay. When I use bill pay the money goes to the checking account of the credit union.
My bank is wellsfargo and I do not pay for that service, it is free.
aljohn said:I think the benefit would be no loss of interest like there is with an ACH transfer since it is basiclly like cutting the payee, bank "B" account a check.
Can you explain it?
I use transfers between my accounts all the time and don't see benefits of using bill pay to do it. I guess I missing something.
With ACH transfer you can loose varying amounts interest depending on the day you initiate the transfer to another bank. (see below from another post)This is due to the money leaving your account before it gets credited to the bank you are transfering to.
If you send bank "B" a check, you will start receiving interest the day the bank "B" deposits it even if they put a hold on it. It will also leave bank "A" the very same day, therefore no loss of interest like ACH transfer (below).
Since Bill pay is the same as sending a check, you should not loose interest like you do if you use ACH transfer to transfer money to another bank.
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The transfer date for Standard and next Day external transfers must be set to the current date.
Standard Delivery (3 Business Days)*
Requested by 8:00 p.m. Eastern Time on:
Source Account Debited before Start-of-Business on:
Destination account credited before Start-of-Business on:
Monday
Tuesday
Thursday
Tuesday
Wednesday
Friday
Wednesday
Thursday
Monday
Thursday
Friday
Tuesday
Friday
Monday
Wednesday
Saturday
Monday
Wednesday
Sunday
Monday
Wednesday
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So Wednesday and Thursday are the WORST days to make the transfers.. since you lose 1 or 2 days EXTRA on top of their normal 2 days...
Sorry, but I don’t have this problem.
My accounts getting credited (earn interest) next morning after transfer.
svap said:Sorry, but I don’t have this problem.
My accounts getting credited (earn interest) next morning after transfer.
Are you sure? Almost all banks have this problem. Say I use electronic transfer from HSBC pushing the money into Citibank, my money will be deducted from my HSBC account usually for 2-3 days before its deposited into Citibank.
If I initiated Citibank to pull money from HSBC, I also get a small lag time, usually also about 2 days. Both times HSBC would deduct the money and then Citibank would deposit the money 2 days later.
pull instead of push 
Anybody else use Bill Pay to avoid the ACH loss of interest problem?
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