How Long Do Bank Transfers Take? Australia
Written by Bindi Gethen
There was once a time when transferring money meant physically withdrawing cash, sealing it in an envelope, and hand-delivering it to the recipient or relying on postal services. Money transfers were as tangible and personal as a handshake.
But as we shifted from a primarily physical world to an increasingly digital one, so too did our modes of financial transactions.
So how long does it take money to transfer between banks in Australia? It depends on the type of transfer: transactions within the same bank, domestic transfers between different banks, and international bank transfers. Money transfer transactions can be instantaneous or up to five business days. If anything, it’s definitely much faster than waiting on your front doorstep for the post guy that may not come.
How Long Does It Take Money to Transfer Between Banks?
Between Your Own Bank Accounts (Held at the Same Bank)
If the two bank accounts involved in the transaction are part of the financial transaction, all you need to do is hit the transfer button and hold your breath for a moment then, voilà, the money’s there. The entire process is quick and hassle-free.
Money transfers between accounts at the same bank are usually instantaneous. This is a logical and convenient feature for many banks, as they have total control over their internal systems and can execute these transfers in real-time.
However, certain banks – particularly smaller, less technologically advanced ones – may still require a processing time. In these instances, it could take anywhere from a few minutes to a few hours.
Related article:
Best Business Bank Account Options for Small Businesses in Australia
Domestic Bank-to-Bank Transfers within Australia
The standard time for most bank-to-bank transfers within Australia is one to two business days. This is due to the New Payments Platform (NPP), a major industry-wide initiative launched by the Australian banking industry to enable real-time, 24/7 payments between accounts at participating Australian financial institutions.
But the thing is, despite this system being in place, not all transfers are instantaneous. The delay often comes down to the processing times of the two banks involved. You’ll need to factor in these processing times and initiate payments well ahead of deadlines.
While most major Australian banks have embraced the NPP, it’s worth noting that smaller banks or credit unions may not have. These non-NPP participant banks could take up to three business days to process the transfer.
Pro tip
The timing of the transfer can also be affected by factors such as weekends and public holidays. Even with NPP, transfers initiated on these days may not get processed until the next business day.
International Bank Transfers
Usually, international bank transfers from Australia can take anywhere from one to five business days. This depends heavily on the receiving country, the corresponding banks, and the method of transfer. Keep in mind that each bank and country has its unique processes and systems.
A primary determinant in the speed of these transfers is the method used. For example, SWIFT transfers (a standard method for international bank transfers) often take two to five business days. This is because the money often goes through a network of correspondent banks until it reaches the recipient’s bank.
Furthermore, there are faster methods like electronic funds transfer services offered by some banks and fintech companies, which can often complete the transfer within one to two business days. These services may come with higher fees.
The money transfer processing times can also be influenced by factors like the currency being used, the transfer amount, and the banking hours in the receiving country. Don’t forget about time zone differences and local holidays.
Does a Bank Transfer Take Longer Than Other Types of Money Transfers?
As we’ve established, bank transfers can be instantaneous or take up to several business days, depending on a multitude of factors. That said, here’s a comparison of other types of money transfers that you could consider:
Digital payment services: Companies like PayPal, PayID, and Osko facilitate real-time transfers 24/7. While they offer speed and convenience, they also usually charge fees for their services, which can add up for frequent or large transactions.
Money transfer services: Western Union and MoneyGram can often do faster transfers, sometimes within minutes, because they operate vast networks of local agents. Similar to digital payment services, the fees and exchange rates for money transfer services are typically higher than those for bank transfers.
Mobile payment apps: Applications such as Venmo, Zelle, or Australia’s Beem It, offer instant transfers (often for free or at a minimal cost). Take note that transferring funds to an external bank account can often take time.
The Bookkeeping Studio: Access Your Money, Your Way
The time taken to transfer money between banks largely depends on the type of transfer and the specifics of the banks involved. While technological advancements have significantly streamlined these processes, there are still many factors you need to consider such as fees, time zones, and money transfer methods, among others.
At The Bookkeeping Studio, we want our readers to understand that accessing your money, your way, is not just a matter of convenience. It’s about exercising control over your finances. Whether it’s managing inter-bank transfers in Australia or learning digital payment platforms, we’re here to teach you everything you need to know about money. Learn how to make the most out of your business bank account today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
