How to Send Money From Savings to Checking Account
Aside from kids who need a special type of account, adults should have no less than one bank account, which can be opened with a traditional bank or neobank. And if you want to properly manage your personal income and expenses, there are basically two types of accounts you should have. They are savings and checking.
The main benefit of having both a checking and savings account is that you can transfer money from one to the other at any time. However, you need to ensure that you have a sufficient balance and that the transaction follows the terms and conditions of the accounts.
Ideally, you should keep more money in savings than in your checking account. But there may be times when you run out of money in your checking account and need to replenish it from your savings. This article is the best guide that will help you make that fund transfer as easy as possible.
When to Transfer Money From a Savings to a Checking Account
There is a time for everything. When you find yourself in a situation where you have no other choice but to transfer money from your savings account to your checking account, you should do it. So, what are such possible situations? We outline them below.
- During an emergency:
One of the main reasons to put your money in a savings account is to be able to meet emergency needs. This is not about impulse buying but about being able to pay for unplanned, critical expenses. Examples include medical bills and essential asset repairs.
- When you need to pay off debt:
Financing a project through debt is sometimes inevitable. But what is more important than the debt is your ability to repay it. If you owe someone, a bank, or a personal loan provider a debt that is due for repayment, you can transfer money from your savings account to your checking account in order to pay it off.
- When ready to buy an asset:
Savings accounts are usually opened for the purpose of keeping money aside in preparation for a major expenditure in the future. You can save for a house, car, or any other asset. When the time comes for you to make the purchase, it is perfectly okay to transfer some or all of your savings to your checking account so that the payment can easily be made.
- Important celebration:
In life, there are major events that we need to prepare for. One of them is a wedding ceremony. If you were saving for such a celebration, you can transfer the money to your checking account in due course to enable you to finance it.
How to Spend Money From Your Savings Account
Savings accounts are not for everyday transactions, which is why they often come with withdrawal limits. Some have penalties for withdrawing money before the end of the term, especially CDs (certificates of deposit).
Ideally, the money in your savings account should be for future payments, which you intend to make in, say, the next one to ten years or more. Nevertheless, some savings account providers allow their customers to make withdrawals whenever they need to. So, it is possible to spend money from your savings account.
The following are the various ways you can use the money in your savings account when you need to make an important transaction:
Set up a direct debit payment
Some banks allow their customers to enable direct debit payments on their savings accounts for certain recurring expenses, such as utility bills. In this system, permission is given to the billing company to make regular withdrawals from your savings account. However, some businesses only allow direct debits from checking accounts due to restrictions on savings accounts, and some banks prevent such transactions.
So, should you set up a direct debit payment on your savings account? Because each transaction counts against the bank's withdrawal limit and may result in a fee if exceeded, setting up a direct debit from a savings account is not the best option. Besides, you may forget some automated payments, and whenever there is not enough money in your savings account, a bill can end up not being paid on time and could make you suffer some adverse consequences.
Get a cashier’s cheque
Another practical option to withdraw money from a savings account is to use a cashier's cheque, which is a guaranteed form of payment. A cashier's cheque can be obtained by visiting a bank, fintech company, credit union, electronic money institution, or any other suitable financial establishment with which you have a savings account. You will request that an amount be debited from your account and used to issue you a cashier’s cheque. If you do not have an account with them, you can visit them with the full amount for the transaction in physical cash. The cheque serves as a substitute for cash.
Any transaction made using a cashier’s cheque is funded by the financial institution rather than your own account. The reason is that you already “purchased” the cashier’s cheque from the financial institution.
Keep in mind that cashier's checks are generally subject to fees.
Use the debit card for your savings account
Most banks and financial institutions do not issue debit cards for savings accounts. Nevertheless, if your savings account provider does, then you can spend money from your account electronically using the debit card issued to you when you opened it.
Note: While you can spend money from your savings account using a debit card at physical and online stores, it is unlikely that you will be able to earn cashback. Therefore, it is better to use any of the best cashback credit cards if you want to get rewards for your purchases.
Make a cash withdrawal
A withdrawal from your savings account is perhaps the easiest, but certainly not the fastest, method to spend money. You only need to go to a nearby branch of your bank and ask the teller to assist you with withdrawing cash from your account. Be ready to fill out a withdrawal slip, present an identity document, or use the card issued to you by the bank to initiate the process.
Alternatively, you can withdraw cash by using either your bank’s ATM or another financial institution. However, keep in mind that using an ATM that is not part of your bank's network might attract a fee.
Do an online money transfer
Making an online money transfer from your savings account into a checking account can be a preferable alternative to accessing an ATM or withdrawing cash. The vast majority of banks enable consumers to quickly transfer money between accounts. They can do it using a mobile banking app without involving a customer service agent.
Money transfers from checking to savings accounts are instantaneous when using the same bank.
How to Send Money From Savings to Checking Account With the Same Bank
If you have both savings and checking accounts with the same bank, there are basically two ways you can send money from the former to the latter easily. You either visit a branch of the bank or use its digital platform to make the transfer.
Visit your bank’s branch
Customers of traditional banks, which basically operate in brick-and-mortar offices, can go to the closest branch of their bank when they need to make any financial transaction. If you are in this category, you can visit your local branch, complete a money transfer form with the required details, and sign it to authorise the bank to carry out the request on your behalf. It might take about 24 hours for the transfer to be completed. Hence, this is not a smart option.
Use your bank’s digital platform
Following the digital transformation in banking, modern banks operate more online than in person. Some, which call themselves challenger banks or neobanks, offer their products and render their services totally online, with no physical branches.
To send money from your savings account to your checking account right from the comfort of your home or current location, you need to access your digital bank account using a device that is connected to the internet. It could be your smartphone or personal computer. Whichever one you have, go to the website of your banking service provider or download and install its app on your mobile phone so that you can conveniently make the transfer of funds from your savings account to your checking account. Most digital banks have a single digital platform or app for you to manage all your accounts.
If you do not have an account with a neobank or a traditional bank that offers digital banking services, then you need to create an online bank account now.
How to Send Money From Savings to Checking Account With Different Banks
Don't worry if you're wondering what you can do because your savings and checking accounts are at different banks. Even if the banks are not the same, you can still make the money transfer. But note that you are most likely going to have to do it online rather than visit a physical branch.
So, sign into your app or digital banking platform and navigate to where you can make transfers from your bank to another bank. Provide the necessary transaction details and click on the "Transfer" or "Send" button.
Note that interbank transactions are usually not free of charge. Expect to pay a fee for transferring money to or from another financial institution. To know whether your sending or receiving bank will charge you a fee for this type of transaction, read the incoming and outgoing external transfer policies of both banks online.
Reasons to Avoid Making Transfers From Savings Accounts to Checking?
You should avoid transferring money from your savings account to your checking account if possible. One of the reasons is that it reduces the balance in your savings account and lowers the interest you will earn at the end of the month or term.
Another reason to avoid transferring money from your savings to your checking account is that such behaviour can become habitual. When that becomes the case, it will be very difficult for you to achieve your savings goal, which could be to buy a house or a car.
People who frequently send money from their savings to their checking accounts are likely to be making a lot of personal money mistakes. Getting any of the best apps for personal budgeting is a good way for them to learn to overcome such weaknesses and transform into investors.
Yes! Provided that you have a digital account with an online bank, you can transfer money from your savings account to your checking account at any time.
If you have to visit a physical branch of your bank to carry out your banking activities, then you may not be able to perform transactions 24/7. The reason for this is that you will have to wait only during banking hours and on working days.
The time it takes to complete a fund transfer from your savings account to your checking account depends on some factors. Most importantly, it depends on whether you have both types of accounts with the same bank or not. If you have them with the same bank, then you can make the transfer online, and the funds will be delivered almost instantly. But if the accounts are with different banks, you might wait for a few minutes, hours, or a day for the transfer to be completed.
It normally would not cost you anything to transfer money from your savings account to your checking account with the same bank. Most banks perform this operation for free. But if your accounts are with different banks, then you should find out whether either one or both of the banks will charge you a fee for such a transaction.
The number of times you can make transfers of funds from your savings to your checking account depends on the terms and conditions of the account and the regulations concerning banking in your country. It could be up to six times per month, or a little more or less. Read the official documents, where you can find the relevant information to know what is permissible.
Nevertheless, for a more rewarding savings experience, you should not make frequent transfers from your savings account. Such operations reduce the interest you are likely to earn on your balance, and some banks may charge you a fee for withdrawing the money before the end of the term.
The limit on how much you can withdraw at once from your account is usually set by your bank in line with the regulatory requirements in your country. So, contact your bank or financial institution for this information. However, it is common to find a single withdrawal limit of US$10,000 on savings accounts.
The amount of money you are allowed to withdraw from your savings account in a day depends on the terms and conditions of your account and your bank. Some financial institutions allow their customers to withdraw their entire balance. So, again, you need to confirm this by contacting your bank.
It is safe to put money in a savings or checking account provided that the bank or financial institution is officially registered, regulated, and insured by reputable authorities. However, if any of them should be considered "safer," then it must be a savings account. The reason is that most savings accounts do not come with debit cards, and your account details are therefore well-protected against wire fraud and scammers.
Savings and checking accounts both have their purposes, so it is good to put money in both of them. Nonetheless, it is wise to ensure that there is more money in your savings account than in your checking account so that you will be earning interest and setting aside enough money to take care of emergency needs.
Savings accounts serve primarily as long- or medium-term money storage facilities. Nonetheless, spending from your savings account is possible in some cases. To do that, you can transfer money from your savings account to your checking account and make payments using your bank card or withdraw cash from an ATM.