Important points
You can deposit money into someone else’s bank account via electronic funds transfer, wire transfer, check, money order, etc. Electronic funds transfers and wire transfers are generally faster and more convenient than traditional methods such as checks and money orders. Some banks restrict cash deposits into accounts not in your name to prevent money laundering and fraud. It can be beneficial to shop around for the most convenient and cost-effective way to deposit money into someone else’s account.
Depositing money into someone else’s bank account is a convenient way to pay back a friend, send pocket money to a college student, or gift birthday money to a relative. The proliferation of digital banking and money transfer apps has made it possible to transfer funds to someone else’s bank. Opening an account is now more convenient and can often be done without the need for cash.
Fortunately, there are several options for depositing money into someone else’s account, either electronically or in person at a bank branch.
1. Make an electronic transfer
Easily send money to your friends and relatives’ accounts through services like Venmo, PayPal, and Cash App. You can also send money to others through Zelle. Most banks already have Zelle built into their services, so you probably don’t need to sign up for this service separately.
As a general rule, be careful when making electronic transfers. When you send money to someone else through this type of service, the payment is often irreversible. To avoid becoming a victim of fraud, don’t send money to people you don’t know and trust.
Another option is to electronically transfer money directly from your bank account to a friend or family member’s bank account. To do this, you will need to provide the other party’s bank account number and routing number. Unlike Zelle and other digital payment networks, which allow you to transfer money in minutes, this type of bank-to-bank transfer can take several days.
2. Make a wire transfer
Wire transfer is another option for sending money to someone else’s bank account. Wire transfers can be made at your bank, credit union, or provider like Western Union or Wise.
To make a wire transfer, you typically need the account number, routing number, and recipient’s name.
If you are sending a large amount of money, a wire transfer may be your best option as there are often no restrictions on sending money through banks. Domestic wire transfers can also be done quickly, as they typically only take a few hours to process.
However, wire transfers can be expensive compared to services like Zelle, which doesn’t charge fees. Domestic transfers can cost as much as $40, while international transfers tend to range from $35 to $75.
3. Write a check
Although paper checks are becoming less popular, you can still write personal checks and deposit them into someone else’s bank account. For security reasons, banks may prefer checks over cashing because they can track your money unlike cash.
“The key question is always, ‘Where did you get that money?'” says Marc Trepanier, senior principal fraud consultant at software provider ACI Worldwide. “If you have a check, you know where it came from. It came from a different account.”
A check can be deposited into someone else’s account at a branch by presenting it to the teller along with the payee’s name and account number.
The disadvantage of depositing a check is that, unlike cash, the bank may not make the funds available immediately.
“Depending on the circumstances, checks could clear and settle in a matter of hours,” said Bob Mehra, principal analyst at Celent, a financial services research and consulting firm. “However, most banks will wait a business day for most customers to have their funds available just to see if their check goes through.”
4. Deposit cash in the bank
To transfer cash to someone else’s account, go to the bank where the person has an account and give the teller the person’s name and account number.
However, some banks may prohibit you from depositing cash into an account that is not in your name. For example, Wells Fargo, a large brick-and-mortar bank, states in its deposit account agreements that no one other than the account holder is allowed to deposit cash into consumer accounts.
The ban on cash deposits helps prevent money laundering and fraud from a banking perspective. However, it is also costly for banks to process cash.
Although it may be inconvenient, there are alternatives. Some of these methods are faster than depositing cash into someone else’s account at a branch.
5. Use a cashier’s check
Instead of writing a personal check, you can deposit a cashier’s check into someone else’s bank account. When you pay the bank for an advance check, the bank issues a check for that amount and sends the check to the intended payee.
The advantage of cashier’s checks is that they are backed by the issuing bank’s funds, so there is no risk of dishonor, and they usually clear more quickly than personal checks.
6. Use a postal money order
If you don’t want to use a personal or cashier’s check to deposit money into someone else’s account, you have the old-fashioned option of using a money order.
Money orders are available at banks, credit unions, post offices, drug and grocery store chains, and some big box stores. Transferring money orders is relatively cheap. For example, the U.S. Postal Service service fee is $2 for domestic orders up to $500.
Postal money orders come with a receipt, and the advantage of postal money orders is that they can usually be replaced if lost or stolen. Money orders are paid in advance just like cashier’s checks, so there is no risk of them being dishonored.
Check services from other banks
There are many ways to deposit funds into a friend or relative’s account. Not all banks allow all methods, so if your bank doesn’t offer the easiest service or the one you need, it may be in your best interest to change banks. there is.
Additionally, different banks may offer perks like certificates of deposit (CDs), savings accounts, better mortgage rates, or even more convenient mobile apps.
conclusion
Electronic options like Zelle, Venmo, and wire transfers allow you to quickly and cheaply transfer funds to someone else’s bank account. Old-fashioned methods, such as making a direct deposit at a bank branch, are still viable options, but are often less convenient than modern digital options.
–Freelance writer Alison Martin contributed updates to this article.
