Bank Transfer or ACH vs Wire Transfer for Kids and Teens
This video does an ACH vs Wire Transfer comparison in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about their similarities and differences, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Middle School
- High School
The topics covered are:
In the past, we have talked about bank transfers or ACH and wire transfers.
But they sound very similar. Can you please help me understand them better?
So what are the differences between ACH transfers and wire transfers?
The main differences are the time taken to transfer money and the cost.
Additionally, wire transfers are irreversible, while ACH transfers can be reversed in case of fraud or mistakes like over-payment of salary by an employer.
Are there any other differences between Bank transfers or ACH vs wire transfers?
While ACH transfers are only domestic, wire transfers can be both domestic and international.
ACH transfers usually have a daily & weekly limit, whereas wires normally don’t have any upper limit.
Also, only ACH transfers can be used while setting up recurring payments like automatic bill payment.
So, are ACH transfers better than wire transfers, or the other way round?
One is not necessarily better than the other – it depends on your money transfer needs.
If you want to transfer money quickly or internationally, or have to transfer a large amount, a wire transfer is better.
But if you are transferring money domestically and can wait a few days, or if you are setting up a recurring payment, an ACH transfer is the right choice.