ACH transfers typically take between one and three days, but that’s only part of the story. The Automated Clearing House (ACH) is a network of interconnected banks that allow for transfers between customers with accounts at different banks. You can send money to another person, as well as receive funds from them, even if you don’t share a bank.
ACH transfers usually take up to two business days to happen, although it’s possible that it can take a longer or shorter time. Financial institutions can pay for same-day transfer, although not all banks may offer this service to their customers. Because ACH transfers generally take a few days to transfer, if you need to transfer money sooner, you may want to explore other options.
Read on to learn more about ACH transfers.
What Is an ACH Transfer?
An ACH transfer is a way to electronically transfer money to or from another person who may have a checking or savings account at a different bank from you. One way to think about the ACH transfer system is that it’s the electronic version of writing a paper check.
When you send an ACH transfer, the money will generally be debited from your account when you make the transfer. The money may take one to three business days to go to the recipient’s bank account. The ACH transfer time is often quoted as taking two days; the transactions are processed in batches, which can help explain why they are not instantaneous.
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Types of ACH Transfers
The ACH system classifies a few different internal routing and transaction codes, but most customers can think of two distinct types of ACH transfers: ACH debits (money coming out of your account) and ACH credits (money going into your account, or an ACH payment). Here’s a look at those two types of ACH transfers:
ACH Debit Transactions
An ACH debit transaction is where money is taken from your account and sent to an account at another bank. Common examples of ACH debit transactions might be recurring payments, online subscriptions or mortgage payments. When your account receives an ACH debit, your savings or checking account balance will decrease.
ACH Credit Transactions
An ACH credit transaction is the opposite of an ACH debit transaction. An ACH credit transaction is when another person or company sends money to your account. There are a variety of different scenarios where you might receive an ACH payment or credit.
• You might get an ACH credit when you receive your direct deposit from your employer.
• Social Security and certain other government payments can be ACH credits to your account.
• An ACH credit will increase your bank account balance when you receive one.
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How Long Does an ACH Transfer Take?
The ACH network processes ACH transfers several times a day, but it’s common that ACH transfers take one to two business days, or sometimes three. If you are scheduling an ACH debit to make an online bill payment, you’ll want to make sure to allow enough time before your bill is due.
You’ll also want to be aware of this processing time when receiving an ACH credit. Knowing that the credit will take that amount of time to clear can help you manage your account balance. It’s wise to be aware that ACH transfer time isn’t instantaneous, so you don’t risk drawing on funds that aren’t yet available. Otherwise, you could end up overdrafting your account.
Recommended: Guide to ACH Routing Numbers
Expediting ACH Transfers: Same-Day ACH Transactions
While most ACH transfers take a few business days, it is possible to expedite the process. Banks can pay an additional fee to process an ACH transaction on the same day. Your bank may or may not support a same-day ACH transaction. Additionally, it will depend on the financial institution and whether or not they pass that banking fee on to you.
Ask your bank’s customer service rep or check their details online or in their app to see what’s possible and if you need to pay a surcharge for this service.
Recommended: How to Stop or Reverse ACH Payments
The Takeaway
How long does an ACH transfer take? These electronic transfers, which allow money to be sent and received between customers at different banks, typically take around two days. ACH transfers make for a convenient way to send and receive money as compared to sending paper checks. It may be possible to pay for an expedited ACH transfer if you don’t want to wait a couple of days.
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FAQ
What are the restrictions to external funds transfers?
Restrictions on external funds transfers may vary depending on your bank. Some banks may limit external transactions to $5,000 per transaction, $10,000 per day, and $50,000 per month, as one example. Check with your bank to see what restrictions might be in place for you.
What does ACH transfer cost?
Every financial institution that sends or receives ACH transfers must pay a fee to the National Automated Clearing House Association, which is the organization that governs and manages the ACH system. Depending on the bank, they may or may not pass these fees on to the customers who receive or send ACH transfers. Check with your bank to see how much an ACH transfer might cost you, especially same-day transactions.
Why is an ACH transfer not an instant transfer of funds?
Although it may be possible to pay for an expedited (same-day) ACH transfer, transfers do not happen instantaneously. The answer to “How long do ACH transfers take?” is usually a couple of days. Typically, ACH transactions are processed in batches vs. right away, which can explain the timing.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
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