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If someone needs to make or receive a payment via check, both cashier’s checks and certified checks can offer a more secure option than a personal check. That said, there’s an important difference between a certified check and a cashier’s check. With the former, the payer backs the check, while with the latter, the bank guarantees it.

What Is a Cashier’s Check?

A cashier’s check is a specific type of check that has a guarantee from a bank or credit union that if the check doesn’t go through, the financial institution will make the payment. This situation can arise if there aren’t sufficient funds in the payer’s account for the check to process. Because of this, cashier’s checks are considered to be the safest form of payment. This type of check is often required when making a major purchase, such as buying a car or putting a down payment on a home.

How Do Cashier’s Checks Work?

The way that a cashier’s check works is that the payer requests a cashier’s check at the financial institution where they have their checking account. They then pay the bank the amount they want to provide to the payee, and the bank will cut a check using its own funds.

The bank will list the payee on the check to ensure that the check is used by the person the payer intended it to go to. Cashier’s checks usually clear faster than personal checks issued from someone’s checkbook.

In many cases, the payer needs to be a member of a bank or credit union to request a cashier’s check be generated. A fee is typically involved as well. It can cost approximately $5-$15 to obtain a cashier’s check, though some banks may waive the fee for certain customers.

What Is a Certified Check?

A certified check is a different type of check that works more like a personal check. With a certified check, the money comes straight from the payer’s checking account. But first, the bank verifies that the payer has sufficient funds in their account to cover the amount. If, for some reason, the check bounces, the account holder is held responsible (unlike with a cashier’s check, where the bank is the one on the hook if the check bounces). Because of this, certified checks tend to be more secure than personal checks.

Recommended: How Much Money Do I Need to Open a Checking Account?

How Do Certified Checks Work?

To certify a check, the bank verifies that the account associated with the check has sufficient funds to make the payment. It will also verify the payer’s identity and will add an official bank stamp or watermark to the check.

It’s possible to get a certified check at some banks, but not all. A certified check typically costs $10-$20.

Which Check Is Safer?

While both certified checks and cashier’s checks are safer than a personal check from your checking account, cashier’s checks are a bit more secure. The reason: The bank that backs them won’t default on the payment. That being said, both types of checks are good options for someone paying a large amount of money. They can also be used when transferring or receiving money from a stranger.

Most likely, if a situation arises that requires one of these check types, it’s because the payee requested payment be made with a specific type of check. They’re probably seeking a higher level of certainty that the payment will go through.

Differences Between a Cashier’s Check and a Certified Check

Is a cashier’s check the same as a certified check? Simply put, no. There are a few key differences in certified checks vs. cashier’s checks that are worth understanding.

Source of Funding

Ideally, with either type of check, the funds will come out of the payee’s bank account. However, if a cashier’s check is issued and then cannot be processed because of insufficient funds, the bank will need to fund the amount due. If the check was a certified check, the payer still needs to fund it through their bank account.

Check Signature

A cashier’s check can include bank employee signatures. With a certified check, however, the bank verifies the check payer’s signature.

Payer of the Check

With both types of checks, the payer is the one paying the check. If, during processing, the check bounces, they’ll only be held responsible for a certified check. With a cashier’s check, the bank that backed the check will then be the one who is required to fund it.

Funds Availability

As briefly noted earlier, with both a cashier’s check and a certified check, the funds available come from the payer’s bank account. If the check bounces and it’s a cashier’s check, then the bank will need to provide the funding. If it’s a certified check, the payer will be responsible for making funds available.

How It Works

With a cashier’s check, the payer requests a cashier’s check at the bank. Then, the payer gives the bank the amount the check will be for. The bank will then cut (or issue) a check using its own funds.

When it comes to certified checks, the bank verifies that the bank account associated with the check has sufficient funds to make the payment. It also verifies the payer’s identity and adds an official bank stamp or watermark to the check. If the check bounces, the payer is held responsible.

Guarantees

A cashier’s check is guaranteed by a financial institution, whereas a certified check is guaranteed by the individual making the payment.

Costs of Checks

The costs of cashier checks and certified checks can vary and are dependent on the fee schedules of individual banks. Typically, a cashier’s check may involve a fee of about $5-$15, while the cost for a certified check may run up to $20.

Safety of Checks

Cashier’s checks are guaranteed by a bank or credit union and are typically considered the safest form of payment. With a certified check, the bank simply certifies that the money was available when the payer wrote the check and then verifies the payer’s signature.

Avoiding Scams and Fraud

To help avoid scams and other types of bank fraud when writing or receiving a check, here are some best practices to keep in mind.

•   Don’t ever send money back to someone who sent you a check unless you have cashed the check or deposited it and are sure it cleared.

•   If selling something to a stranger online, consider using an escrow or online payment service instead of a check.

•   Never accept a check that’s worth more than it was supposed to be.

•   Don’t lose a check with personal banking information on it.

Alternatives to Cashier’s Checks and Certified Checks

If a cashier’s check or certified check doesn’t seem like the right fit for you, there are other ways you can send money to someone’s account.

Money Orders

When it comes to a certified check or cashier’s check vs. a money order, a money order functions much like a standard check. It can be bought at retail stores, supermarkets, financial institutions, and U.S. post offices. The payer pays for the money order upfront, so there’s no chance of overdrawing like there is with a check. No bank account is required. At the post office, a domestic money order for $500 or less costs $2.55, while a money order for over $500-$1000 costs $3.60.

P2P Payments

P2P payment services, including Cash App, PayPal, and Venmo, enable you to send cash for smaller purchases instantaneously. These may be ideal for daily life (for instance, when you owe friends money for dinner). This isn’t the right choice, though, when managing a large transaction such as a down payment on a home.

Money Transfer Services

Money transfer services are a convenient form of electronic payment that involves sending money from one bank to another via the Automated Clearing House (ACH) rather than by check. Among the transactions that work this way are e-checks and direct deposits.

The Takeaway

The main difference between a certified check vs. a cashier’s check is who guarantees the check. In the case of a cashier’s check, the bank guarantees it, but with a certified check, the customer writing the check guarantees it. Cashier’s checks are typically thought to be the safest option, and they may also be more readily available (certified checks are only offered by some banks). Both types of checks are important financial tools when you need a more trustworthy form of payment than a standard check.

Having a bank account that can provide you with the tools and services you need, such as a certified or cashier’s check or an array of digital features including mobile deposit and bill pay, is important. When choosing a bank, make sure to find out all the offerings they have, as well as what their account fees are and any minimum balance required. That way, you can make the most informed decision.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.30% APY on SoFi Checking and Savings.

FAQ

Do certified checks clear immediately?

When you deposit a certified check, it doesn’t clear immediately. It typically takes one to two business days.

Can you get scammed with a certified check?

Both certified checks and cashier’s checks are safer than personal checks. Of course, there is still a small chance that fraud may occur, as checks can be faked. It’s wise to always be careful when receiving or making payments via checks, especially for large sums of money.

Is it safe to accept a cashier’s check?

Yes, it’s generally safe to accept a cashier’s check. A cashier’s check is much more reliable than a personal check because it’s guaranteed by the bank or credit union issuing it.

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About the author

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Photo credit: iStock/Dilok Klaisataporn

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOBNK-Q126-114

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Budgeting can be challenging even with a stable income, but it becomes much more complex when your income fluctuates. Many freelancers, gig workers, seasonal employees, and commission-based professionals are familiar with the uncertainty of irregular compensation. With the right strategies, however, you can come up with a budget that allows you to manage your expenses, save for future goals, and feel less stressed about money, even during those lean months. Here’s a basic guide to budgeting with a variable income.

Tips for Budgeting With an Irregular Income

Just because you don’t get a regular paycheck doesn’t mean you can’t build wealth and achieve your financial goals. These tips can help you manage your up-and-down paychecks and feel more in control of your finances.

1. Determine Your Average Monthly Income

The first step in budgeting with an irregular income is to determine your average monthly take-home income. This can be tricky since your earnings vary, but you can get a reasonable estimate by looking at your income over the past 6-12 months.

Start by gathering your bank statements for the last 6-12 months, or if you get e-statements, log into your online checking account. Next, add up all of your income for the time period you choose, then divide it by the number of months. This gives you an average monthly income, which will serve as a baseline for your budget.

Something to keep in mind: If you earn money from side gigs or freelancing, you’ll want to subtract anything that reduces it, such as taxes and business expenses.

2. Analyze Your Spending

Once you know how much money you have coming in, the next step is to figure out where it’s all going. You can do this by looking at your bank and credit card statements over the past six months and then listing and categorizing your expenses. This will show you what you’re spending the most money on and where it might be straightforward to save. Some tips that can help:

•   Begin by listing your fixed expenses. These are regular monthly bills, such as rent or mortgage, utilities, and car payments.

•   Next, list your variable expenses. These are the expenses that may change from month to month, such as groceries, gas, and entertainment. This is an area where you might find opportunities to cut back.

•   Consider tracking your spending. To get a better sense of your spending, you may want to track it for a month. Simply record your daily spending using whatever method you prefer — pen and paper, an app on your smartphone, or a budgeting spreadsheet found online.

3. Set Some Goals

Before you begin analyzing the data you’ve gathered, it’s a good idea to jot down your short- and long-term financial goals.

Short-term goals are things you want to accomplish within the next few years. This might include establishing an emergency fund (more on that below), reducing credit card debt, going on vacation, or putting a down payment on a home. Long-term goals, such as saving for retirement or funding your child’s education, may take decades to accomplish.

Identifying these objectives can inspire you to stick to your budget. For instance, it might be easier to reduce expenses when you’re aware that you’re saving for a new car or a tropical vacation.

4. Consider Using the Zero-Sum Budget

There are many different types of budgets, but the zero-sum budgeting approach can work particularly well for people with fluctuating income.

With this method, every dollar of your income is assigned a specific purpose, including saving and paying off debt. You’ll treat your short- and long-term financial goals as “expenses,” just like rent, utilities, and any other monthly expense. So if you make an average of $5,000 a month from your variable income, everything you spend or save during a month should add up to $5,000.

To make this budget work with a fluctuating income, you may want to take your average monthly income and use it as a salary for yourself. During months when your salary is higher than the average, you’ll put the surplus into a separate savings account. During months where your income is lower than the average, you’ll draw the additional funds from that account. In this fashion, you end up with the same salary every month.

Recommended: 7 Different Types of Budgeting Methods

5. Start Building An Emergency Fund

An emergency fund is important for everyone, particularly for people with inconsistent income. This is an account you can turn to should you get hit with an unexpected expense (such as a big home or car repair) or to cover your essential expenses should your income take a hit. While the general rule of thumb is to keep three to six months’ worth of living expenses in a separate savings account for emergencies, those with fluctuating income may want to aim higher. An emergency fund calculator can help you determine how much money you should set aside.

Once you come up with a goal amount for your emergency savings, consider these ways to fund it:

•   Open a separate account. To ensure you don’t actually spend the money on something else — and to allow your money to grow while it’s sitting around — consider opening a high-yield savings account specifically earmarked for your emergency fund. You can generally find the best rates at online banks.

•   Automate your savings. Once you determine how much you can put toward your emergency fund each month and factor it into your budget, consider setting up an automatic monthly transfer into your emergency account. It’s fine to start small. Regular deposits will build over time.

•   Take advantage of windfalls. Consider allocating any windfalls that come your way, such as a tax refund, cash gift, or bonus, to your emergency fund to accelerate your progress.

Once you build your emergency fund, you can put your monthly transfer toward other savings goals.

The Takeaway

The foundation of any budget is your net (take-home) monthly income. To come up with that number on a fluctuating income, you’ll need to look at the last 6-12 months of income and come up with an average. You can then determine how you want to divvy up that money up so you can cover your necessities and work toward your goals while enjoying your life.

The zero-sum budget is one option you can try, but there are many other types of budgets. The goal is to get to a place where you won’t overspend during the high times or worry during the low times because it’s all factored into your budget.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.30% APY on SoFi Checking and Savings.

FAQ

Will budgeting work if you have an irregular income?

Yes, budgeting can work with an irregular income. Most budgeting approaches start with your net (after tax) monthly income. To come up with that figure with a fluctuating income, you’ll want to look at the past 6-12 months of your income, assess the average monthly income, and then determine what your average monthly spending is, see how it compares, and make any necessary adjustments to your spending.

What are examples of irregular income?

Irregular income refers to earnings that vary in amount and frequency. Examples include:

•   Freelance work

•   Seasonal jobs

•   Commission-based sales

•   Side gigs

•   Bonuses and tips

What is the difference between regular income and irregular income?

Regular income is a set amount of money received at regular intervals, such as weekly, biweekly, or monthly. Examples are earnings from a salaried job or a passive income source, including rental income.

Irregular income, on the other hand, varies in amount and frequency. It includes freelance payments, seasonal work, commissions, and gig economy earnings. The key difference lies in the stability and predictability of the income stream.

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About the author

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Photo credit: iStock/andresr

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOBNK-Q126-125

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Paying someone no longer requires handing over cash or writing a check. From mobile payment apps to direct bank transfers, there are now multiple secure ways to deposit money into another person’s bank account. Whether you’re reimbursing a friend, supporting a family member, or paying a contractor, choosing the right transfer method can save you time, reduce fees, and help ensure your money arrives safely.

What Details Do You Need to Send Money?

Before you can deposit money into someone else’s bank account, you’ll need specific information about the recipient. The exact details vary by method, but transfers generally require one or more of the following:

•   Recipient’s name as it appears on the their bank account

•   Bank account number, usually a checking account

•   The bank’s routing number

•   An email address or phone number for app-based payments

For digital payment apps, the recipient’s email or phone number is often enough. For bank-based transfers, you’ll need both the account and routing numbers.

Top Methods to Send Money Directly

Below are seven common and dependable ways to deposit money into someone’s bank account, each varying in speed, cost, and convenience.

1. P2P Apps (Venmo, Cash App

Peer-to-peer (P2P) payment apps and services are one of the most popular ways to send money directly from one individual to another. These apps allow you to transfer funds (often within minutes) using a phone number, email address, or username, making them ideal for everyday payments.

P2P apps link directly to your bank account or debit card. To send money, you simply enter their email or phone number, choose the amount, and authorize the transfer. The recipient typically needs to have an account with the same payment service.

P2P apps are generally free to use when linked to a bank account or debit card. However, sending money with a credit card often comes with a fee of around 1-3%.

With apps like Venmo or Cash App, the money generally stays in the app balance until the recipient transfers it to their bank account. Standard bank transfers are often free but may take one to three business days; instant transfers typically incur a small fee.

P2P apps can be ideal for quick, casual transfers, such as splitting bills, reimbursing friends, or paying for small services (like babysitters or lawn care).

2. Third-Party Money Transfer Services (PayPal, Wise)

While money transfer services like PayPal and Wise also facilitate P2P payments, they offer a broader array of services, including cross-border transactions, high-volume transfers, and business payments.

For example, PayPal offers personal money transfers, e-commerce purchases, and international transfers, with high limits (generally up to $60,000 per transaction). You can send money for free using a linked bank account or PayPal balance; using a credit or debit card incurs a 2.9% transaction fee plus a $0.30 flat fee.

Wise, on the other hand, specializes in fast, low-cost international money transfers. You can pay for an international transfer using your bank account, a debit card, or a credit card. Your recipient doesn’t need to have a Wise account, though you will need their local bank details. You can see the transfer fees and exchange rate before you initiate a transfer.

3. Third-Party Banking App (Zelle®)

Zelle® offers a fast and easy way to send money directly into someone else’s bank account, often within minutes. Both the sender and recipient must be enrolled in Zelle® through a participating U.S. bank. Unlike many other money transfer services, Zelle® is integrated directly into the mobile apps and online banking platforms of numerous banks and credit unions.

Recommended: Zelle® Transaction Limits

4. External Bank Transfers (ACH)

ACH payments transfer money electronically between bank accounts through the Automated Clearing House (ACH) network — the same system used for payroll direct deposits and automated bill payments.

You can initiate an ACH transfer though your online banking portal or mobile banking app. To do so, you’ll need the recipient’s bank account and routing number. Many banks allow you to save the recipient’s bank information, making future transfers easier. ACH transfers typically take one to three business days to complete.

While slower than P2P apps, ACH transfers can work well for planned or recurring payments, such as gym membership payments, rent, or a child’s monthly allowance. ACH transfers also tend to allow higher transfer limits than P2P apps, making them suitable for larger payments.

Recommended: How to Set Up Direct Deposit

5. Cash Deposit at a Local Branch

In some cases, you can deposit cash directly into someone else’s account by visiting a branch of their bank. You’ll usually need the recipient’s full name and account number, and you may be asked to show identification.

Bank policies vary, and some institutions restrict or prohibit third-party cash deposits due to concerns about money laundering and fraud. It’s best to contact the bank ahead of time to confirm whether this option is allowed.

6. Money Orders

A money order is a prepaid paper document that guarantees payment of a specific amount. Unlike personal checks, money orders cannot bounce due to insufficient funds.

You can purchase a money order at banks, credit unions, post offices, and some retail stores using cash or a debit card. You’ll pay the full amount up front, plus a small fee (typically $10 to $15) and receive a receipt with a tracking number. Depending on the issuer, you may be limited to a maximum money order amount of $500 or $1,000.

The money order can be made payable to the recipient, who can then deposit it into their bank account. In some cases, you may also be able to deposit it directly at their bank.

Money orders are secure and traceable but slower than electronic payments due to the time involved in purchasing and (if applicable) mailing them. They can be useful when digital payments aren’t an option or when personal checks aren’t accepted.

7. Personal Checks

Personal checks remain a common option for non-urgent payments. The recipient can deposit the check via instant mobile check deposit, ATM, or in person at a bank branch. You may also be able to deposit a check into someone else’s account at a branch if you have their account number.

Once deposited, checks typically take one or two business days to clear, though large amounts may face holds of up to seven business days.

Checks can work well when both parties are comfortable with the arrangement and speed isn’t critical. They can also be useful when you want a paper trail for record-keeping or tax purposes.

8. Wire Transfers (Best for Large or Urgent Payments)

Wire transfers allow you to send money directly from one bank to another, either domestically or internationally. Domestic wire transfers often arrive the same day, while international wires may take several business days.

Wire transfers are available through banks, credit unions, and providers such as Western Union. To send one, you’ll need detailed recipient information, including their full name, bank name, account number, and routing number (or SWIFT/BIC code for international transfers). Fees run around $20-$35 for domestic wires and $25-$50 for international transfers.

Because of their speed and high transfer limits, wire transfers are generally best for large or time-sensitive transactions, such as real estate purchases, business payments, or emergency transfers. They are also commonly used for international money transfers.

9. Cashier’s Checks

A cashier’s check is issued by a bank and drawn from the bank’s own funds rather than your personal account. Because the bank guarantees payment, cashier’s checks are considered highly secure.

To obtain one, you’ll need to visit your bank with the recipient’s name, payment amount, and valid identification. The bank withdraws the funds from your account and issues the check, usually for a fee of around $10.

The recipient can deposit the cashier’s check into their bank account, with funds often available by the next business day. This method is commonly used for large purchases or formal transactions that require guaranteed funds.

Which Method is Best? Speed vs Cost

The best way to deposit money into someone else’s account depends on your priorities. If speed matters most, P2P apps and wire transfers are usually the fastest. If minimizing fees is the goal, ACH transfers, P2P apps, and personal checks are often the most affordable.

For large or high-stake transactions, wire transfers and cashier’s checks provide high limits, along with added security.

Safety Tips: Avoiding Scams When Sending Money

While digital payments are convenient, they also carry risks. Scammers often exploit fast and irreversible payment methods. To protect yourself:

•   Verify the recipient’s identity: Be suspicious of unexpected calls, texts, or emails asking for money, even from friends or family. Call the person directly using a number you already have — not from the message — to confirm requests.

•   Watch for urgency: Scammers frequently create high-pressure situations (such as fake emergencies or “act now” deals) to make you panic and send money before you can think through or verify the request.

•   Avoid unusual payment requests: Be cautious if someone insists on a wire transfer, gift cards, or cryptocurrency. Legitimate businesses and government agencies will never ask for payment this way.

The Takeaway

Depositing money into someone else’s account can be simple, secure, and efficient when you choose the right method. From instant app-based transfers to traditional checks and wire payments, each option serves a different purpose. By understanding how these methods work — and when to use them — you can send money confidently while minimizing risk, delays, and unnecessary fees.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.30% APY on SoFi Checking and Savings.

FAQ

Do names need to match for bank transfers?

Generally, no, the names on the sending and receiving accounts do not need to match for bank transfers. You can transfer money from your bank account to someone else’s using methods like bank-to-bank (ACH) transfers or wire transfers. You’ll need to provide details about the recipient, such as their full name, account number, and routing number. To transfer funds using a payment app, you typically only need to provide the recipient’s email or phone number.

Can you make an anonymous deposit into someone else’s account?

An anonymous deposit is usually not possible when depositing money into someone else’s account. Banks and financial institutions have strict regulations, such as the Bank Secrecy Act (BSA), requiring them to verify the identity of the person making the deposit to prevent money laundering and fraud.

For bank-to-bank transfers (ACH) or wire transfers, the recipient will see the name associated with the sending account. For cash deposits at a branch, the bank will often require your ID and record your name on the transaction receipt. P2P apps also use your registered name or username.

Can you deposit money into someone else’s account at an ATM?

It is typically not possible to deposit money into someone else’s account at an ATM. ATMs are generally set up to accept deposits only into the account associated with the ATM/debit card being used. To deposit funds into another person’s account, you’ll usually need to use a different method, such as an online bank-to-bank transfer or a payment app. You may be able to deposit cash or a check (if the recipient endorses it properly) in person at a teller window, but policies vary.

What is the difference between a wire transfer and a direct deposit?

The primary differences between a wire transfer and a direct deposit are the network used, the typical use case, cost, speed, and geographical reach. Wire transfers are generally preferred for urgent, one-time, high-value, or international payments, while direct deposits are ideal for recurring, low-cost, domestic transactions like payroll.

Is it safe to give someone my bank account number for a deposit?

It is generally only safe to share your bank account number for a deposit if you trust the person or organization and use a secure, encrypted channel. While a routing and account number alone rarely allows unauthorized withdrawals, they can be used for fraud if combined with other personal details. More broadly, it’s important to only transfer money to individuals or businesses you know and trust to help avoid online scammers.

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Photo credit: iStock/AlexSecret

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

SOBNK-Q126-012

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If you’ve found yourself worrying about money lately, you’re not the only one. Nearly nine in 10 U.S. adults report feeling some kind of financial stress, according to a December 2025 National Endowment for Financial Education survey. More than seven in 10 (77%) said they experienced some form of major expense or financial setback in 2025, with the cost of everyday living (39%), housing costs (27%), and credit card or other debt (10%) listed as the top contributors to financial stress in U.S. households.

Many of today’s financial stressors are out of our control — such as inflation and high mortgage rates. Even so, there are actions you can take to manage money-related anxiety. Here, you’ll learn steps you can take to tackle financial goals despite challenging times.

What Is Financial Anxiety?

It’s normal to worry about money from time to time, but if you’re continually worrying about bills, your money worries keep you up at night, and/or you find it difficult to face your financial situation head-on and come up with solutions, you may be dealing with financial anxiety.

Financial anxiety is defined as an intense fear or discomfort caused by things related to money, such as debts, expenses, investments, income, savings, or adverse economic situations. This type of anxiety can affect anyone, regardless of their income or financial status, and it can often be debilitating.

Like other forms of anxiety, financial anxiety can interfere with everyday life and affect your mental and physical well-being, leading to depression, loss of appetite, insomnia, an inability to focus, and even cardiovascular and other medical problems.

Can You Overcome Financial Anxiety?

Yes, it’s possible to overcome financial anxiety with the right strategies and mindset. Overcoming this issue involves understanding the root causes of your anxiety, developing a proactive approach to managing your finances, and seeking support when needed. While financial anxiety may not disappear entirely, you can learn to manage it effectively and reduce its impact on your life.

7 Ways to Deal With Financial Anxiety

While there’s no one-size-fits-all solution to money stress, there are strategies that can help you feel more in control of your finances. Consider trying one or more of these tips, and see what works best for you.

1. Tackle One Decision (or Problem) at a Time

Financial anxiety can be paralyzing when you try to address all your financial concerns at once. A good first step to reducing financial stress is to figure out what’s making you feel most anxious. Is it your spending, your student loans, your mortgage, or saving for the future? Then focus on tackling one decision or problem at a time.

It can also be helpful to break down larger financial goals into smaller, manageable tasks. For instance, if you’re worried about debt, start by creating a plan to pay off the smallest debt or the highest-interest loan first. Gradually addressing each issue can help you feel more on top of your money and reduce overall stress.

2. Create a Budget

A major facet of money stress can involve feeling out of control in terms of your finances. There’s a simple solution to that: making and sticking to a budget. A budget allows you to see exactly where your money is going and helps you make informed decisions about your spending.

While budgeting may sound like an overwhelming process, it simply involves looking at your income and spending over the last several months, categorizing your spending, and (if necessary) identifying areas where you can cut back. There are all different ways to allocate your money, but one simple framework is the 50/30/20 budget. It recommends putting 50% of your after-tax income toward needs, 30% toward wants, and 20% toward savings and debt repayments beyond the minimum.

Having a clear financial plan can provide a sense of control and reduce uncertainty about your financial future.

3. Prepare for the Unexpected With an Emergency Fund

One great way to allay financial stress is to know that you have some back-up funds when or if you need them. Should life throw you a financial curveball (such as a major car repair, an unexpected medical bill, or loss of income), having a solid emergency fund you can tap means you won’t have to run up expensive debt to cope.

A general rule of thumb is to keep at least three-to-six months’ worth of living expenses stored in a separate savings account (ideally a high-yield savings account). And since you’ve already created a budget, you’ll know how much, on average, your necessities cost each month.

Keep in mind that you don’t have to build your emergency fund overnight. It’s okay to start small. Even setting aside $50-$100 a month can add up over time. Consider setting up an automatic transfer on payday from checking to a linked savings account so you aren’t tempted to spend that amount.

Recommended: How to Build an Emergency Fund in Six Steps

4. Deal With Debt

Even in the best of times, debt can cause worry and stress. It may feel like a weight that is always hanging over you. And inflation and high interest rates (ouch) can make the anxiety more intense.

If you have debt that’s causing you stress, it’s a good idea to take steps to reduce it — think of it as a form of financial self-care. Start by listing all your debts, including the interest rates and minimum payments. Then consider using strategies such as the debt snowball method (paying off the smallest debt first) or the debt avalanche method (paying off the highest interest debt first). You may also want to explore options for consolidating or refinancing your debt to reduce interest rates and monthly payments.

5. Just Say No to Splurging

When we’re stressed, there are a lot of ways to relax or blow off steam — and many of them cost money. Retail therapy, a big night out, a weekend getaway: Sure, they are all wonderful, but if you’re dealing with financial stress, they may not be good options. They can add to any debt you’re carrying, give you less cash for daily life, and lead to more financial stress.

Here are some tips that can help you develop better spending habits:

•   Don’t window-shop or pit-stop at your favorite stores. That’s just putting temptation in your path.

•   If you see something you feel you must have, even though it’s not a true need, wait for a while (anywhere from 24 hours to 30 days) before buying it. You may find that the urge cools.

•   Set aside some “fun money” in your budget for low-cost treats. Some ideas: getting a fancy coffee on Friday morning to reward yourself for a week of hard work, taking yourself to the beach one afternoon, climbing a mountain and savoring the view, or getting a 10-minute massage at a nearby spa.

6. Add a Second Income Stream

Sometimes it’s not about subtracting spending from your daily life but rather about adding more cash to your pocket. There are many benefits to a side hustle: Picking one that fits into your current lifestyle without taking up too much of your free time can really add value to your wallet and your life.

Before choosing a gig, think about what you’d like to do. You might be able to freelance as a writer or social media consultant. Or perhaps you can sell your suitable-for-framing travel photos online. If you enjoy driving around on weekends, you might sign up with a ride-sharing app. Love animals? Consider starting a dog-walking service.

If you don’t have time to take on additional work, you might sell items you own that are in good condition but you no longer need. There are dozens of places to sell your stuff. For clothes, try a local second-hand store near you, such as Crossroads or Buffalo Exchange. For furniture and other goods, try listing on eBay, Etsy (yes, it’s for more than just crafts), Facebook Marketplace, or Nextdoor.

7. Reframe Your Financial Stress

Changing the way you think about financial stress can help manage anxiety. Instead of viewing financial challenges as insurmountable obstacles, try to see them as opportunities for growth and learning. Focus on the progress you’ve made rather than the setbacks. Practicing gratitude for what you have and acknowledging your efforts can shift your mindset and reduce anxiety.

It can also be helpful to talk to those close to you. Let them know you’re dealing with financial stress, and ask how they manage theirs. Talking about your worries can help put them into perspective. And in addition to getting reassurance and comfort, you may learn some new strategies.

Getting Help for Your Financial Anxiety

If you’re having trouble sorting out your finances and managing your anxiety on your own, it can be worthwhile to seek outside help.

For practical solutions to money issues, you might seek out a financial advisor. These professionals can offer advice on savings, investments, and retirement planning tailored to your financial situation, helping you develop a strategy to achieve your financial goals.

If your money anxiety is more deeply rooted or affecting your mental or physical health, you might want to consult a mental health professional, such as a psychologist, social worker, or financial therapist. These professionals can help you understand and work through the emotional aspects of your money worries and provide you with coping mechanisms to manage stress.

The Takeaway

Money worries can get the best of us, especially in challenging times, such as when inflation and interest rates are high and there’s talk of a potential downturn in the economy.

To manage financial stress, it’s wise to take steps to improve your cash situation — say, by budgeting, building up an emergency fund, and lowering high-interest debt. It’s also a good idea to work on your emotional wellness by tackling one problem at a time, avoiding temptation and the subsequent guilt, seeking support from those close to you, and, if necessary, enlisting the help of a financial or mental health professional.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.30% APY on SoFi Checking and Savings.

FAQ

How do you stop being financially anxious?

There are a number of steps you can take to reduce financial anxiety. If you’re worried about debt or lack of savings, for example, you might want to assess and categorize your spending over the last several months, then look for places to cut back. Any money you free up can be redirected toward paying more than the minimum on your debts and/or building your savings.

Other ways to stop feeling financially anxious include building an emergency fund (this provides a safety net for unexpected expenses), seeking advice from a financial advisor to develop a long-term plan, and practicing stress-reduction techniques, such as mindfulness and exercise.

Why do you get anxious about money?

Financial anxiety can stem from a number of factors, including:

•   A lack of control or understanding of your financial situation

•   Job insecurity

•   Inflation

•   Unexpected expenses

•   Insufficient savings

•   Cultural and societal pressures (i.e., the expectation to maintain a certain lifestyle)

•   Past financial mistakes or trauma

How do you stop obsessing about money?

You might start by setting some clear financial goals and then creating a realistic monthly budget that can help you achieve those goals. This can reduce financial worries — and help you stop obsessing about money — by giving you a greater sense of direction and control.

Other ways to spend less time thinking about money include:

•   Automating savings and bill payments

•   Limiting the amount of time you spend reviewing your accounts to once or twice a month

•   Engaging in hobbies and activities that bring you joy and distract you from financial worries or temptations to spend money

•   Seeking support from friends, family, or a therapist if money worries persist

•   Educating yourself about personal finance to build confidence and reduce fear of the unknown

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOBNK-Q126-110

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One of the most common ways money moves between banks in the U.S. is the ACH (Automated Clearing House) network. If you get your paycheck through direct deposit, pay bills online, and periodically transfer money between banks, ACH payments are already a key part of your financial life.

ACH payment works differently than wire transfers and peer-to-peer payment apps. Understanding what ACH payments are, how they work, and what they cost can help you choose the right payment method and manage your finances effectively.

What Is an ACH Transfer?

An ACH transfer is the movement of funds between accounts at different financial institutions through the Automated Clearing House network. Managed by Nacha (formerly the National Automated Clearing House Association), this system allows funds to be moved between different financial institutions without the need for paper checks, wire transfers, or cash.

The ACH network connects most banking institutions in the U.S. and is commonly used for direct deposits, online bill pay, and bank-to-bank fund transfers. For example, if you want to transfer funds from a checking account at a traditional bank to a high-yield savings account at an online bank, you would make an ACH transfer.

ACH uses a batch-processing system, meaning transactions are collected throughout the day and processed at set intervals rather than individually in real-time. While this slows transfer times, it keeps costs low.

How Does an ACH Transfer Work?

An ACH transfer involves multiple parties working together to move money from one bank account to another behind the scenes. The process begins when an individual, business, or organization (called the “originator”) initiates a transaction, such as scheduling a bill payment or issuing payroll.

Once initiated, the payment request is sent to the originator’s bank. That bank then sends digital payment files to the ACH network, which passes them on to the receiving bank. After receiving the transaction, the receiving bank credits or debits the recipient’s account, depending on the type of ACH transfer.

Unlike online wire transfers or payments (like Zelle®), which allow individuals to quickly send money to trusted recipients’ bank accounts, ACH transfers are typically processed in batches and take one to three business days to complete.

History of ACH

The ACH network began in the late 1960s, when a group of U.S. bankers worried about the increasing number of checks being issued and cashed. They feared that rising numbers of checks would overwhelm the banking system, and they began to explore technological solutions. Here’s a brief history of the ACH:

•   In 1972, an ACH association formed in California to manage electronic banking transactions, with other regional ACH networks forming soon after that.

•   In 1974, these regional networks formed NACHA to oversee and administer the ACH network. This organization oversees the network, while the Federal Reserve and The Clearing House actually process the transactions.

•   In 1975, the Social Security Administration began testing direct deposit, which led to today’s widespread adoption. Approximately 99% of SSA’s payments are currently completed via direct deposit.

•   In 2001, online and phone payments via ACH became available, a key step forward to accelerating and automating banking transactions.

•   In 2024 (the most recent full year studied), ACH payments numbered more than 33 billion, and the total dollars transferred exceeded $86 trillion. These figures indicate how big a role ACH transfers play in global finance.

Types of ACH

ACH transactions generally fall into two main categories — credits and debits. Understanding these types helps clarify how ACH is used in everyday financial activities.

ACH Credit

An ACH credit occurs when money is pushed from one account to another. In this scenario, the sender initiates the transfer and the payee passively waits for the funds. Common examples of this include direct deposit of paychecks, government benefits, and tax refunds.

When you transfer money to another bank account, it’s considered an ACH credit.

ACH Debit

An ACH debit works in the opposite direction. Instead of pushing money out, the sender authorizes another party to pull funds from their account on dates and for amounts agreed upon in advance. ACH debits are commonly used for monthly bills, like mortgage payments, insurance premiums, and subscription services.

ACH Remittance

Money sent to family relatives or people in other countries — often called remittance payments — are sometimes made via ACH transfer, since it offers a secure, low-cost alternative to a wire transfer. However, availability of international ACHs is limited and depends on whether a bank has partnerships with financial institutions overseas. These transfers may also have higher fees and longer processing times.

How to Send an ACH Payment

If you want to make an ACH credit payment, these are typically the steps involved.

Step 1: Gather Information from the Recipient

To send money via ACH, you’ll need the recipient’s full name, along with their bank account and routing number. Your bank might also request the recipient’s address, as well as their bank’s address.

Step 2: Link Your Accounts

Log into your banking app or online banking portal, look for options such as ”Pay & Transfer” or “External Transfers” then follow the instructions to enter the recipient’s banking details. You may need to indicate whether the account is a checking account or a savings account and if the payment is going to an individual or business account.

Step 3: Make the Payment

Type in how much you want to pay the recipient, and whether the payment is to be made now or scheduled in the future. Finally, check all the details and confirm the transaction.

Pros of Using ACH Payments

ACH payments come with numerous benefits that make them a popular choice for both consumers and businesses. Here are some to consider:

Low or No Fees

Many banks offer ACH transfers and payments for free or charge minimal fees. This makes ACH more cost effective than sending a wire transfer and an attractive option for recurring and large transactions.

Convenience for Recurring Bills

Once authorization is set up, online bill payments can be automated, reducing the risk of missed due dates and late fees. Banks also typically let you set up reminders or alerts before a bill is due so you can make sure you have sufficient funds in your account to cover the payment.

Cons of Using ACH Payments

There are a few potential disadvantages when it comes to using ACH transfers. Specifically:

Transfer Speed and Cutoff Times

A major drawback of ACH payments is their relatively slow speed. Every financial institution has its own daily cutoff (often 5:00 PM). Missing this window by even a minute means the transaction will not begin processing until the following business day.

Also because the ACH network only operates on business days, a transaction initiated on weekend or holiday will be delayed until the next banking day, potentially extending a simple transfer to four or five calendar days.

Transaction Limits

Banks often impose limits on ACH transaction amounts or frequencies. These limits may restrict how much you can send in a single transfer or within a given time period, which can be challenging if you need to make frequent or high-volume transactions.

Security of ACH Transfers

Security is a critical component of the ACH network. Transactions are governed by strict rules and standards designed to protect both consumers and financial institutions. Encryption, authentication procedures, and monitoring systems offer bank account protection and help prevent unauthorized access and fraud.

In addition, ACH transactions include consumer protections such as dispute resolution and reversal rights in certain cases. If an unauthorized ACH debit occurs, account holders generally have the right to report it and recover their funds within specified timeframes.

While no payment system is completely risk-free, ACH is widely regarded as a secure and reliable method for electronic payments when used responsibly.

ACH vs Wire Transfers vs Payment Apps

ACH transfers, wire transfers, and payment apps each serve different purposes. ACH transfers are cost-effective and ideal for recurring or non-urgent payments. Wire transfers are faster and can be a good choice for large, time-sensitive, or international transactions, but they come with higher fees.

Payment apps often provide instant or near-instant transfers and are convenient for everyday peer-to-peer payments. However, they typically have transfer limits and may charge fees for immediate transfers to your bank account.

Choosing the right method depends on factors such as speed, cost, transaction size, and the level of formality required.

Recommended: ACH vs. Wire Transfers: Differences, Similarities, and Which You Should Use

How is ACH Evolving?

The ACH network continues to evolve in response to changing consumer expectations and technological advancements. One major development has been the expansion of same-day ACH, which allows faster processing for eligible transactions. At the same time, new fraud prevention requirements and tools are strengthening security. Starting in spring 2026, banks must implement risk-based processes to identify fraudulent or unauthorized transactions as part of the ACH payment process.

While traditionally used for payroll and bill payments, ACH is now expanding into new areas like e-commerce “pay by bank” options and “ACH on demand” payouts (which allow gig workers to access their earned wages quickly).

What Does ACH Mean for The Future of Payments?

ACH is likely to remain a foundational element of the U.S. payments system. As digital banking becomes more widespread, the demand for reliable, low-cost electronic transfer will continue to grow.

While newer real-time payment systems may handle instant transactions, ACH’s scalability and efficiency make it well-suited for high-volume payments such as payrolls, bills, and business transactions. Rather than being replaced, ACH is expected to coexist with emerging technologies, each serving different needs within the financial ecosystem.

The Takeaway

ACH transfers are a foundational, secure, and cost-effective method for moving money electronically in the U.S. They facilitate everything from your direct-deposited paycheck to automated bill payments. While they are slower than wire transfers or instant payment apps due to their batch-processing nature, the low (or no) fee structure and high reliability make them the preferred choice for recurring and non-urgent transactions.

As the system continues to evolve with same-day processing and enhanced security features, understanding how ACH credits and debits work is essential for effectively managing your finances in the digital age.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, named the #1 Bank in the U.S. for the fourth year in a row by Forbes (2026).* Enjoy up to 3.30% APY on SoFi Checking and Savings.

FAQ

How long does an ACH transfer actually take?

An ACH (Automated Clearing House) transfer typically takes one to three business days to complete, though same-day ACH is available for some transactions.

Is Zelle® considered an ACH transfer?

While Zelle® and ACH transfers both allow you to send money between U.S. bank accounts, they aren’t identical. The Zelle® network is a distinct payment network designed for fast transfers, whereas standard ACH transfers rely on a batch-processing system that often takes one to three business days. However, Zelle® may still utilize the Automated Clearing House (ACH) network behind the scenes for the final settlement of funds between financial institutions.

What is the difference between an ACH transfer and an EFT?

An EFT (Electronic Funds Transfer) is an umbrella term for any transfer of money from one bank account to another electronically. An ACH transfer is a type of EFT that specifically uses the Automated Clearing House network. All ACH transfers are EFTs, but not all EFTs are ACH transfers. Other common EFTs include wire transfers, debit card transactions, and peer-to-peer payment apps.

Can I reverse an ACH payment if I made a mistake?

Yes, sometimes — but it depends on the timing and the reason. If you made an error (wrong amount or recipient), contact your bank immediately. ACH payment can only be reversed in limited cases, such as duplicate or incorrect amounts, and usually within a short window. If the payment has already settled, you may need the recipient’s cooperation to get the money back.

Is an ACH deposit the same as a direct deposit?

Yes, a direct deposit is a specific type of ACH credit transfer. When your employer sends your paycheck electronically to your bank account, they are initiating an ACH credit through the Automated Clearing House network. While a direct deposit is always considered an ACH deposit, the term “ACH deposit” can refer to other types of inbound ACH credits as well, such as tax refunds or funds transferred from one of your accounts at a different bank.

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SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 3/31/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

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Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license.

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