The ability to transfer cash between accounts is very useful, whether you are transferring money from a checking to a savings account or sending money to pay monthly bills. Being able to make instant payments whenever you need to carries a number of advantages over writing checks and waiting for them to clear.
The speed of the transaction is one of the most significant benefits to money transfers. Unlike checks, which can take a week or more to be received and processed, a money transfer can be initiated instantly and processed within a day or two. The speed of the money transfer transaction makes it much easier to manage your finances and pay your bills on time. This in turn can help you avoid late charges and other fees that could result if your payments were sent the old fashioned way.
Sending a check in the mail can be risky. There is always the possibility that the check will be lost or stolen as it makes its way from your mailbox to the recipient. If the check is lost in the mail, you could face late fees while you try to convince your creditors that you did in fact make your payment on time. If the check is stolen, the thieves gain access to your routing number and account number, and with that information they can potentially drain your bank account. Using cash transfers instead of checks prevents these problems and gives you instant confirmation that your payment was made.
Bank account holders can easily set up several different external accounts, and use those accounts to move money back and forth at will. While the initial process of setting up and verifying each account can take a few days, once the account is set up, the transfer can be initiated in a matter of minutes. This makes it easy to move money around when necessary to make a major purchase, take advantage of higher interest rates or make sure funds are available in the case of an emergency.
- Cash image by Greg Carpenter from Fotolia.com