How to transfer money to someone elses bank account uk

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Every day millions of people transfer money from one bank account to another – between their own accounts, to friends or family, and to pay companies or businesses.

Online bank transfers have become a lot more common since the move away from cash and cheques. But it pays to be careful in order to be sure your money is safe and arrives at the intended recipient.

Online bank transfers

Online bank transfers are the most common way to send money to another bank account. You might transfer money to an account:

• in your name with the same bank
• in your name at another bank
• held by a friend or family member
• belonging to a small business (i.e. a plumber) or bigger company
• held in another country

You can set up a bank transfer using online banking or your bank’s mobile app.

What is Faster Payments?

Most bank transfers are sent using the Faster Payments system which is free for personal banking customers (business bank accounts may charge a fee). 

As the name suggests, transfers are completed quickly. Money usually reaches the recipient’s account within two hours, although sometimes it can be straight away.

To make a transfer you’ll need the following details for the recipient (or ‘payee’):

• name
• sort code (six digits)
• account number (eight digits)
• whether it’s a personal or business account

You’ll also be asked for a payment reference. You can just enter the name or what the payment was for – for example, “Emma” or “Laura’s birthday”.

Your bank will ask how much money you want to send, and the date you want to send it.

Are the name and account details correct?

In the past, some people mis-typed sort code and account numbers and ended up sending money to the wrong person (which can be really hard to get back). 

As a result, in 2020 Pay.UK set up ‘confirmation of payee’. This is a name checking service which double-checks the account details entered for an online bank transfer match the name of the recipient. 

Not all banks are signed up to confirmation of payee, but most are. If your bank is participating, it will tell you whether or not the account and name details match. If they don’t match, you can choose whether to proceed with the transaction. 

Once you have sent money to someone once, their details will be stored on your mobile or online banking. This means you can send payments more quickly in the future. 

Different banks take different approaches to setting up new payees securely. Some only let you do it on online banking, not on a mobile app. Others text you each time a new payee is set up on your account, or require you to use a card reader to verify an initial transfer. 

You might also be asked questions such as “Do you know the person you’re sending money to?” or “Has someone contacted you out of the blue asking for money?”

Transaction limits

Technically you can send up to £1m using Faster Payments but banks generally don’t allow this amount from a personal bank account. 

Each bank sets its own limit as to how much you can send per transaction or per day. For example, First Direct lets you send £49,999.99 a day, Natwest £20,000 and Lloyds £25,000.

Some banks let you set your own limit.

If you need to send a large amount of money to someone, you may have to split it into smaller payments over consecutive days.

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International bank transfers

You can also make international bank transfers using mobile or online banking.

To make a transfer, you’ll need the following details from the recipient:

• name and address
• International Bank Account Number (IBAN)
• bank’s name and address 
• bank’s Bank Identifier Code (BIC) 

Sending money internationally using your bank account is easy and convenient, but the exchange rate is likely to be poor and you might have to pay a fee too. 

Cheaper and quicker international transfers are available via Wise or Revolut, or multi-currency current accounts. But for large transactions, it’s best to use a currency broker.

Mobile phone payments usingPaym

Paym is the UK’s mobile payment system and is most commonly used by friends and family sending money to one another. There’s no fee and you can send up to £250 per transaction this way. 

With Paym, your bank account details are kept secret and your mobile number is used as a substitute. 

Both parties will need to be signed up with Paym to complete a transaction – you can register for the system in your mobile banking app. Then when someone wants to send you money – for example, a friend who owes you cash – you can just give them your mobile number. 

Other ways to pay

If you’re not confident using online or mobile banking, you can make bank transfers over the phone or by visiting a bank branch.

You can also still write a cheque. Just bear in mind that not all businesses still accept them. 

What is a CHAPS payment?

CHAPS stands for Clearing House Automated Payment System and is a way of sending large amounts of money between UK banks quickly. There’s no limit as to how much money you can send this way. Assuming you make the payment before a cut-off time (normally 3.30pm), it will arrive the same day.

You need to set up a CHAPS payment over the phone or in a bank branch, although some banks let you do it online. It normally costs about £20.

CHAPS is typically used when you buy a house and need to transfer money to your solicitor on completion day.

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