How to transfer money to another person’s bank account free
Many US banks charge for sending money to an account that you do not own if that account is at another bank.
There are though some online options for doing such a transfer for free:
1. PayPal
PayPal allows you to transfer money to friends for free. The following image shows the where exactly in the interface you can do it.
Pros
+ You do not need a lot of information from the friend, just an email address.
Cons
- The friend needs a PayPal account
- It takes a while for the friend to actually get the money after he accepts the transfer.
- If there are problems with the transfer, it might be difficult to get the money back.
PayPal allows sending money to friends for free
2. ING Direct checking account
ING allows doing the same thing, very easily. Go here for a tutorial.
Pros
+ Fast, free
+ You can get 75 account opening bonus for opening such an account (no hidden fees) . Read more here.
Cons
- You need the account information from the friend (bank account number, routing number)
I prefer the ING option, but you might like the PayPal one more.
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