The main ways to move money out of savings

You can send money from your savings account using a wire transfer, an ACH transfer, a debit card, a check, or a peer-to-peer payment app. Wire transfers move money the fastest but cost the most. ACH transfers are slower but free or cheap. Debit cards and checks work anywhere but require the recipient to deposit or cash them. Which method you use depends on how fast you need the money to move, whether you know the recipient's bank details, and how much you want to spend on fees.

Your bank controls which of these options you can use from your savings account. Some banks restrict certain transfer types from savings to protect the account's purpose. Before you try to send money, log into your online banking or call your bank to see what methods are available to you.

Key Takeaways

  • Wire transfers move money in hours but typically cost $15 to $30 per transfer and cannot be reversed once sent.
  • ACH transfers are free or cost $1 to $3, take one to three business days, and work only between U.S. bank accounts.
  • Debit cards and checks let you spend directly from savings without a separate transfer step, but the recipient has to deposit or cash them.
  • Peer-to-peer apps like Venmo and PayPal move money between individuals quickly and often free, but work best for smaller amounts.
  • Your bank may limit how many times per month you can transfer money out of a savings account.

Wire transfers: fastest but most expensive

A wire transfer moves money directly from your bank account to another bank account, usually within the same day or within a few hours. To send a wire, you need the recipient's full name, their bank account number, the bank's routing number, and sometimes the bank's address. You can start a wire through online banking, by phone, or in person at a branch.

Wire transfers cost between $15 and $30 per transfer, depending on your bank. Some banks charge more for international wires. Once the money leaves your account, you cannot cancel or reverse the transfer, so double-check all the details before you confirm. If you send money to the wrong account, you will have to contact the recipient's bank and ask them to return it, which can take weeks or may not happen at all.

Use wire transfers when you need money to arrive the same day or when the recipient cannot receive ACH transfers. Do not use them for small amounts or when you are unsure about the recipient's account details.

ACH transfers: slow but free or cheap

ACH transfers (Automated Clearing House) move money between U.S. bank accounts through a clearing network. They take one to three business days and usually cost nothing or $1 to $3. To send an ACH transfer, you need the recipient's name, account number, and routing number. You can set up ACH transfers through online banking or by giving your bank the recipient's details over the phone.

ACH transfers work only between accounts at U.S. banks and credit unions. They cannot be used to send money internationally or to non-bank services. Because ACH transfers take several days, they are not useful when you need money to arrive today. However, they are the cheapest way to move money between bank accounts and are reversible if you make a mistake.

Many people set up recurring ACH transfers to move money to another account on a fixed schedule — for example, $200 every two weeks. Your bank may let you schedule these transfers in advance through online banking.

Debit cards and checks: spend directly without a transfer

You do not have to transfer money out of your savings account to spend it. If your savings account comes with a debit card, you can use it to buy things or withdraw cash at an ATM. The money comes straight out of your savings balance. This is the simplest way to access your money if you just need to spend it, not send it to someone else's account.

If you want to send money to someone by mail, you can write a check from your savings account (if your bank offers checks on savings accounts — not all do). The recipient deposits or cashes the check at their bank, and the money clears in one to three business days. Checks are free to write but take time to clear and can get lost in the mail.

Debit cards and checks do not work if you need money to arrive in someone else's bank account instantly or if the recipient is not nearby to deposit a check.

Peer-to-peer payment apps: fast for small amounts

Apps like Venmo, PayPal, Square Cash, and Zelle let you send money to another person's phone number or email address. These transfers usually arrive within minutes or a few hours and are often free. To use them, both you and the recipient need to download the app and link a bank account or debit card.

Peer-to-peer apps work best for splitting bills, paying friends back, or sending small amounts of money. Most apps have daily or monthly limits on how much you can send — often $500 to $2,000 per day depending on the app and how long you have used it. Some apps charge a fee if you want to send money faster or if you link a credit card instead of a bank account.

These apps are not designed for large transfers or for sending money to businesses. If you need to send a large amount or to a company, use a wire transfer or ACH transfer instead.

Transfer limits and how often you can send money

Federal law used to limit savings account holders to six transfers or withdrawals per month, but that rule was suspended in 2020. However, your bank may still have its own limits. Some banks allow unlimited transfers, while others cap you at a certain number per month or charge a fee after a certain number of transfers.

Check your account agreement or call your bank to find out what limits apply to your savings account. If you hit your bank's limit, you may have to wait until the next month to make another transfer, or you may have to move money to a checking account first and transfer from there.

Some banks also limit how much money you can transfer in a single day or per week. These limits exist to protect your account from fraud. If you need to send more than your daily limit, contact your bank and ask if they can raise it temporarily.

What to do if a transfer fails or goes to the wrong place

If an ACH transfer fails, your bank will usually return the money to your account within one to three business days and send you a notice explaining why. Common reasons include a wrong account number, a closed account, or insufficient funds. You can then correct the information and try again.

If a wire transfer goes to the wrong account, contact your bank immediately. Wire transfers cannot be reversed, but your bank can contact the recipient's bank and ask them to return the money. This process can take weeks and may not succeed if the recipient has already spent the money. To avoid this, always verify the account number and routing number before you send a wire.

If you use a peer-to-peer app and send money to the wrong person, contact the app's support team right away. Some apps can cancel a transfer if it has not been accepted yet, but once the recipient accepts it, you may not be able to get the money back.

Frequently Asked Questions

Can I send money from savings to a credit card?

No, you cannot transfer money directly from a savings account to a credit card. You can transfer to a checking account and then pay your credit card from there, or you can use a peer-to-peer app if the credit card holder has one set up. Some credit card companies let you link a bank account and pull money from it to pay your bill, but that is the credit card company initiating the transfer, not you.

How long does it take to send money internationally from savings?

International wire transfers take one to five business days depending on the destination country and the banks involved. They cost $15 to $50 or more. ACH transfers do not work internationally. Some peer-to-peer apps and money transfer services like Wise or OFX offer international transfers at lower costs, but they may take longer or have daily limits.

What happens if I send money to someone and they do not deposit it?

If you send an ACH transfer or wire and the recipient does not deposit or accept it, the money stays in their account or is returned to you. For ACH transfers, unclaimed money is usually returned after a set period. For wires, the money sits in the recipient's account until they claim it or the bank returns it. For peer-to-peer apps, the recipient must accept the payment for it to complete; if they do not, the money returns to you automatically after a few days.

Do I pay taxes on money I send to someone from my savings?

No. Sending money from your savings account to another person is not a taxable event. Taxes apply only to income you earn or to interest your savings account generates. If you are sending money as a gift, there are no tax consequences for you or the recipient unless the amount exceeds annual gift tax limits, which are very high for most people.

Can I send money from savings if my account is frozen or on hold?

No. If your bank has frozen or placed a hold on your savings account, you cannot transfer money out until the hold is lifted. Holds typically last a few business days. Contact your bank to find out why the hold is in place and when it will be removed.