Introduction
By linking your bank account to other accounts at the same bank or even at different banks, you can easily transfer funds between accounts and make payments. You won’t need to visit a bank branch or write checks, and in many cases, transferring money electronically can be done for free.
Linking External Bank Accounts
The easiest way to link accounts is online or using an app. Gather the following details about the account you wish to link:
- Bank Name
- Bank Location (City and State is all you need to provide)
- ABA Routing Number
- Account Number
Note: You can find out where to locate this information on your checks by reading the parts of the check. You can also obtain this information by calling your bank or looking for those details while logging into your account online.
When you log into your bank account, look for an option for transfers or external accounts. The option may have a different name at each bank, but you will likely find the word “Transfer” in most cases.
When you enter the section of the site used for transfers, you will want to choose to add a new account (perhaps you have already linked other accounts, or you may need to create your first link). Click on the section that allows you to add an account.
After you provide your bank information, your financial institution needs to verify that you actually own the account. They will make several “trial deposits” into your external account, totaling less than one dollar, to see if you can confirm that the link was created correctly. Make sure to log into your external account within a few days to find these deposits.
Then, go back to the other account to check the exact amounts of the deposits. If the amounts match, your link will be verified. If the deposits do not match, or if the deposit process did not take place, you will need to try the process again. The deposits will be reversed soon after they are made. You won’t be able to keep the money.
At some banks, you can skip the trial deposits and create the link immediately. To do this, you will need to provide the username and password of the external account you wish to link.
Note: When providing the username and password of the external account you wish to link, you must remember that in addition to the speed of the process, anyone could steal your password and your information.
Setting Up Online Payments
If you are making or receiving payments (rather than transferring funds between banks), the process is very similar – provide your account numbers and routing information. You may not need to go through the same verification steps unless you are able to transfer large amounts of money into your account. For simple online payments like bill payments or direct deposit of your wages, just double-check the routing and account numbers before clicking “Send.”
Linking In-Bank or Credit Union Accounts
It is easy to transfer money between checking and savings accounts within the same bank or credit union, but it may be beneficial to take things one step further. If you are worried about running out of funds in your checking account, you might be able to set up your savings account as an overdraft protection account.
Instead of writing checks without funds, missing payments, or incurring overdraft fees, the bank can transfer money from your savings account to your checking account to cover the payment.
Note: Check with your bank regarding fees for overdraft protection service before opting to use it (a fee of $10 per transfer may apply, which adds to the cost if you use it frequently).
Linking
Other Types of Accounts
The simplest type of link is the one between two bank accounts. You can also link your bank account to other types of accounts (like a brokerage account), but the process may be slightly different. When dealing with non-bank accounts, you may need to use a special form (usually provided by the institution holding your non-bank account).
For payment services like PayPal or Venmo or any peer-to-peer payment service using your bank account, the process is generally similar to linking two bank accounts.
Linking Bank Accounts the Traditional Way
You may also be able to set up transfers and payments without going online. Sometimes, the traditional route is the only option available. Ask your financial institution if they will create a link if you provide a paper check. You may need to submit a check to the institution, either as a deposit or for a small amount (like $1), or you may just need to present a voided check. In any case, you will need to instruct the institution to create the link, either by using a form or by attaching a note with your check.
Frequently Asked Questions (FAQs)
How secure is linking bank accounts between institutions?
In general, banks use the latest security technologies to secure online transactions. However, every time you use your financial information online, there is a level of risk involved. Before linking accounts online, make sure both institutions are using the latest security technologies standard in the industry.
How long does it take to link bank accounts?
The time it takes to link your accounts depends on the verification process your bank uses. Instant online verification using your password can happen almost immediately. If the bank needs to perform manual verification by making small deposits into your account, it may take several business days.
Source: https://www.thebalance.com/how-to-link-bank-accounts-315436
Source: https://www.thebalancemoney.com/learn-to-link-bank-accounts-315141
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