Best Ways to Transfer Money Between Bank Accounts

Banking has become more convenient and easy for customers. It is easy to transfer money from sitting inside your home through netbanking. Nowadays every bank whether private or public provides this service. It helps the banks in providing superior customer service and there is less burden on the labor. So is a win win situation for banks.

Transfer Money Between Accounts
One needs to know the IFSC code of the payee’s bank to whom he/she wants to transfer the money. For e.g. if the depositor wants to send money in SBI account of the payee then he should know the State bank of India IFSC code . Without knowing it, the money cannot be transferred.

Best way to transfer money is through RTGS and NEFT. These are also the most popular methods of transferring money. NEFT stands for National Electronic Funds Transfer. It is used to transfer money within a particular time slot. Advantage of NEFT is that there is no maximum or minimum limit for transfer of money. But there is limit to maximum amount which can be sent through a single transaction. There are nominal charges which one has to bear for transferring large amount of funds.

RTGS is another method of payment. It stands for Real Time Gross Settlement. Money is transferred real time in this system. But it is sent in various batches. RTGS is used for large transactions. Normally the funds get transferred within 30 minutes. There are charges which one has to bear for transferring funds through RTGS. It is preferred mode of payment in case of emergencies. Minimum amount for transferring funds through RTGS is INR 2 Lakhs.

For both the mode of payment the timings for transferring the funds can vary depending on the timing of the branches. Also there are no charges for inward transactions in both the mode of payments. IMPS is preferred for payment of utility bills. There is a small amount charged for carrying out IMPS transactions.

There is also a third method of payment – IMPS. It is preferred to transfer money through mobile, internet or ATM. The maximum amount which can be transferred in this mode of payment is INR 5 Lakhs.

Customers can choose any of the three methods while transferring funds. The best part of doing online transaction is one can save the beneficiary data. This can help in transferring funds to the same beneficiary in future.

For carrying out any kind of payment transaction it is necessary to know the IFSC code of bank. It is available online or on the RBI website. Suppose if someone wants to transfer money in beneficiary’s Axis bank account then the person should know ‘Axis bank IFSC code’.

There will be more progress in the mode of payments in future. Right now these three are the safest and reliable methods of doing online transactions. People are slowly getting accustomed to following these methods for transferring money. Many companies are also using these method for carrying out large transactions. Salaries and payment to vendors are carried out through these methods.