This is a guest post from Title Source. Title Source is one of the largest providers of title insurance, property valuations and settlement services in the nation.
Wiring money … how is it done, where does it go and what benefits will it provide me? These are common thoughts running through the mind of someone who’s attempting to wire large amounts of money for the first time. Let us assure you, wiring money is secure, quick and reliable. Here’s your mini guide on wiring money.
What Is a Wire Transfer?
Wiring money is more properly referred to as a bank wire transfer. It’s a method of payment that happens through an electronic funds transfer from one bank to another. Unlike when you deposit money in someone’s account, there is no physical cash movement in this option, only the balance in each account is modified. Since the identification of both the parties is confirmed prior to transfer, it is considered a safe method. The popularity of wire transfers can also be attributed to their speed and convenience. This is the method used when closing a mortgage on a home.
How Do I Complete a Bank Wire Transfer?
Step 1: Assemble the information you need. This includes the recipient’s name, bank name, the bank’s American Banking Association (ABA) code and the recipient’s bank account number.
Step 2: Approach your bank and place an order to transfer a specific amount to your recipient.
Step 3: Complete the wire transfer form. This can sometimes be found online, but if not, you can get one from your bank’s branch. There is a spot on the form for additional optional information. We suggest that you fill it out, identifying the address of the subject property.
Step 4: Verify required additional information. A state issued ID or verification information will be required to complete the transaction.
Step 5: Pay any required transfer fees, which will vary by bank or credit union. When your transfer is complete you will receive a receipt either at the bank, by fax or email.
What Are the Benefits of Wiring Money?
- It’s a great way to get money from A to B with minimal delays.
- Funds are typically available within hours of the closing (cashier, certified and personal checks require a minimal 10 day hold to clear funds).
- There are virtually no geographic limitations.
- There is no need to go to the bank to deposit a check.
- Because bank wire transfers are used for important and large transactions, many system are in place increase security and reduce fraud.
- It’s often the cheapest method for transferring funds between bank accounts
What Are the Disadvantages of Wiring Money?
- The buyer and the seller may accrue a variable fee for the transaction.
Any questions or comments? Please let us know in the comments below!