When you send money using a wire transfer or any bank transfer you must understand how long it takes to clear. Wire transfer is supposed to complete on the same business day if it was submitted before the end of the day. Otherwise, it should clear on the next business day. However, it can take longer.

Some banks like Ally bank put large wire transfers on hold to verify the transaction. Customer service calls you and asks questions about the transfer to make sure that you are aware of the operation and whether you initiated it.

Long holidays and weekends can slow down the process. If you submit a wire transfer after business hours it is going to clear only on the next business day.

When should I use wire transfer?

Domestic wire transfers are used to move large sums of money. For example, when you buy a house or a car. You can use it instead of writing a check because paper checks on a large amount take a week to clear.

For large payments suite cases cash is not an option. In many cases, it is good to have a paper trail for money. This way it is easy to prove the legitimacy of money and its origins. Otherwise, the bank can suspect you of money laundering.

The fact that wire transfers can clear in a matter of one business day makes them very useful. No one wants to wait days to receive money.

Fees

Banks usually charge a fee when you send money via wire. The price of the transfer depends on the bank and sometimes you can be charged even for incoming transfers. For example, Bank of America takes $30 per outgoing transfer. PNC Bank charges customers $15 for an incoming wire transfer. So there can be fees on both ends.

Alternatives to wire transfers

One of the alternatives to wire transfer is Zelle. It can bring money in a matter of minutes, which is a faster alternative. However, Zelle has a low limit on the amount of transfer. Any transfer below $2,000 should be fine.

Another alternative is a paper check. In many big banks, this type of payment has a very high upper limit. Mobile check deposit of a large paper check can be limited in many banks (see mobile check deposit limits), but deposit in a bank’s branch shouldn’t be an issue.

Most other ways have a limit on the amount of transfer or have an intermediate bank, which imposes some limits as well.

The bottom line is, a wire transfer can clear as soon as the same business day, but under certain conditions can drag for a few calendar days.