I recently read about an ACH transfer or bank transfer. But what is it?
An ACH transfer is a popular method of sending or receiving money electronically. It is also widely used for paying bills online, and for direct deposit of salary.
Why is it called ACH transfer?
ACH stands for Automated Clearing House. The money transferred is cleared through the Automated Clearing House network, hence the name ACH transfer.
How does an ACH transfer work?
There are two ways. Money could be pulled from your account, which happens when you set up recurring payments like an electricity bill payment. Or money could be pushed from your account, which happens when you initiate a specific transfer, like sending money to a friend.
How long does an ACH transfer take?
It takes 2-5 business days.
How much do ACH Transfers cost? What is the fee?
Banks usually do not charge anything for ACH transfers – it’s free!
What are the advantages of ACH transfers?
Did you not hear the free part? Apart from being free, they are also way more convenient than writing and mailing checks. Recurring ACH transactions like automatic bill payments also help you avoid any late fees.
Are there any disadvantages of ACH transfers?
Since ACH transfers takes 2-5 business days, they may not suit all money transfer needs. Also, usually there are daily and weekly limits on ACH transfers imposed by banks.
Podcast: What is ACH Transfer or Bank Transfer
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about ACH Transfers or Bank Transfers: What is ACH Transfer or Bank Transfer, Why is it called ACH transfer, How does an ACH transfer work, How long does an ACH transfer take, How much do ACH Transfers cost – What is the ACH Transfer / Bank Transfer fee, What are the advantages of ACH transfers, Are there any disadvantages of ACH transfers, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-ach-transfer-or-bank-transfer/