My wife & I share a regular expense with my sister-in-law. She doesn’t write checks and she doesn’t use PayPal. She has asked for our bank routing number & account number so she can transfer the money directly from her bank to us. My questions are, 1) is this a good/safe practice? And 2) if it’s safe what is the best way to send her that info? Text? Voided check via USPS?

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Ukulele music I couldn't find anywhere else.
[colquhoun.info]

You already share those numbers every time you write a check to any one.

Yes, voided checks is how you share this info with your employer’s payroll department for example.

You can use Zelle to transfer with just an email linked to an account at each end.

I would create a dedicated account at the bank, and flush it as soon as money hits.

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San Antonio, TX (in the old city)


"All that is required for evil to prevail is for good men to do nothing." - Edmund Burke
“Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." - Eli Weisel

"To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public." - Theodore Roosevelt (1918)

"I don’t want to see religious bigotry in any form. It would disturb me if there was a wedding between the religious fundamentalists and the political right. The hard right has no interest in religion except to manipulate it." - Billy Graham 1981

"Politics and governing demand compromise. But these Christians believe they are acting in the name of God, so they can't and won't compromise" - Barry Goldwater

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special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account. Unless she's going to do wire transfers, but those can cost money for individuals (both the sender and the receiver, depending on the account/bank)

She could set you up as a bill-pay in her account and the bank would prepare and mail you a check (she doesn't have to "write" it). Or have her figure out how to use Zelle, which is integrated into many banks and checking accounts now.

Or, if you want to be a PITA because she's being a PITA, just give her your account number and bank name and make her take cash to a branch and deposit it into your account!

I use this method often. As far as transmitting, I have one bank that insists on texts for comms, rather than email, because they consider that more secure.

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“Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it."

She could set you up as a bill-pay in her account and the bank would prepare and mail you a check (she doesn't have to "write" it).

As Gareth mentioned, this to me would be the easiest and safest way. It can be set up as one time or a regular payment and she won't have to think anything more about it.

Or have her figure out how to use Zelle, which is integrated into many banks and checking accounts now.

Also a great option.

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Gareth

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special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account.

I do not think this is true. I think once you go through this process, you can only send money to that account, you cannot withdraw from it unless you have login information. At least this is how it works with different banks (I have this set up in three banks, but there is no way my kids can draw money from my account, or even send it to me, while I can send it to theirs but not withdraw). In other words, you are setting up one-way money transfer capability, not linking the accounts. Some banks do not allow this unless both accounts are in your name. Ask the bank.

The options above are better, keeping in mind that Zelle is capped to a certain amount per person and total per month.



Edited 3 time(s). Last edit at 10/01/2024 09:51AM by dk62.

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Rolando
I would create a dedicated account at the bank, and flush it as soon as money hits.

If it's a regular thing, then the above is very safe and simple.

I have a niece who I send money to monthly. I use to have my bank send her a check through their billpay service. However, a couple of checks went missing due to the sketchiness of her neighborhood (and post office!).

Now with this dedicated joint account, I transfer a set amount into it monthly, and she flushes it immediately. The account is completely walled off from my other accounts at this financial institution, so no concerns about any other funds being at risk even if someone gets access to that account information.

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Billybob

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Rolando
I would create a dedicated account at the bank, and flush it as soon as money hits.

If it's a regular thing, then the above is very safe and simple.

I have a niece who I send money to monthly. I use to have my bank send her a check through their billpay service. However, a couple of checks went missing due to the sketchiness of her neighborhood (and post office!).

Now with this dedicated joint account, I transfer a set amount into it monthly, and she flushes it immediately. The account is completely walled off from my other accounts at this financial institution, so no concerns about any other funds being at risk even if someone gets access to that account information.

"Completely walled off" yet no monthly fees? Can you say more?

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Black
"Completely walled off" yet no monthly fees? Can you say more?

My credit union does!

---

San Antonio, TX (in the old city)


"All that is required for evil to prevail is for good men to do nothing." - Edmund Burke
“Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented." - Eli Weisel

"To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public." - Theodore Roosevelt (1918)

"I don’t want to see religious bigotry in any form. It would disturb me if there was a wedding between the religious fundamentalists and the political right. The hard right has no interest in religion except to manipulate it." - Billy Graham 1981

"Politics and governing demand compromise. But these Christians believe they are acting in the name of God, so they can't and won't compromise" - Barry Goldwater

Quote
dk62

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Gareth

Quote
special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account.

I do not think this is true. I think once you go through this process, you can only send money to that account, you cannot withdraw from it unless you have login information. At least this is how it works with different banks (I have this set up in three banks, but there is no way my kids can draw money from my account, or even send it to me, while I can send it to theirs but not withdraw). In other words, you are setting up one-way money transfer capability, not linking the accounts. Some banks do not allow this unless both accounts are in your name. Ask the bank.

The options above are better, keeping in mind that Zelle is capped to a certain amount per person and total per month.

Hmmm, I have my bank account and my Fidelity account linked and I can do transfers in both directions. I also have the account and routing info for a company that I'm making a purchase from linked, but that one only allows me to transfer money to them, not withdraw from their account. I don't know how Fidelity set up these two accounts, but it appears to be something that can be done.

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bobinmurphy

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dk62

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Gareth

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special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account.

I do not think this is true. I think once you go through this process, you can only send money to that account, you cannot withdraw from it unless you have login information. At least this is how it works with different banks (I have this set up in three banks, but there is no way my kids can draw money from my account, or even send it to me, while I can send it to theirs but not withdraw). In other words, you are setting up one-way money transfer capability, not linking the accounts. Some banks do not allow this unless both accounts are in your name. Ask the bank.

The options above are better, keeping in mind that Zelle is capped to a certain amount per person and total per month.

Hmmm, I have my bank account and my Fidelity account linked and I can do transfers in both directions. I also have the account and routing info for a company that I'm making a purchase from linked, but that one only allows me to transfer money to them, not withdraw from their account. I don't know how Fidelity set up these two accounts, but it appears to be something that can be done.

You can send money from within your Fidelity account with no fee?
Or do you have to "pull" the money from the other account?

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Black

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Billybob

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Rolando
I would create a dedicated account at the bank, and flush it as soon as money hits.

If it's a regular thing, then the above is very safe and simple.

I have a niece who I send money to monthly. I use to have my bank send her a check through their billpay service. However, a couple of checks went missing due to the sketchiness of her neighborhood (and post office!).

Now with this dedicated joint account, I transfer a set amount into it monthly, and she flushes it immediately. The account is completely walled off from my other accounts at this financial institution, so no concerns about any other funds being at risk even if someone gets access to that account information.

"Completely walled off" yet no monthly fees? Can you say more?

I bank at an institution that offers no-fee accounts if you have direct deposit, which I have. I have a secondary account just for instances where it might be sketchy, like eBay was several years ago or somewhere else that might not offer quite the security (i.e., my comfort levels) I would like. This secondary account is not connected to my primary: no overdraft protection, etc. if it goes dry, then only a small amount of money was there, and this minimizes losses. That secondary account is also fee-free. As I am the owner of that account, I can add to it or draw from it, and as any transaction is supposedly one-way, it should be difficult to steal from it. But, as others have noted, that account number and routing information is out there.

I struggle with "no overdraft protection...." If you're talking about an account that will more often than not have a zero balance, can't something go wrong with that?

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Diana

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Black

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Billybob

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Rolando
I would create a dedicated account at the bank, and flush it as soon as money hits.

If it's a regular thing, then the above is very safe and simple.

I have a niece who I send money to monthly. I use to have my bank send her a check through their billpay service. However, a couple of checks went missing due to the sketchiness of her neighborhood (and post office!).

Now with this dedicated joint account, I transfer a set amount into it monthly, and she flushes it immediately. The account is completely walled off from my other accounts at this financial institution, so no concerns about any other funds being at risk even if someone gets access to that account information.

"Completely walled off" yet no monthly fees? Can you say more?

I bank at an institution that offers no-fee accounts if you have direct deposit, which I have. I have a secondary account just for instances where it might be sketchy, like eBay was several years ago or somewhere else that might not offer quite the security (i.e., my comfort levels) I would like. This secondary account is not connected to my primary: no overdraft protection, etc. if it goes dry, then only a small amount of money was there, and this minimizes losses. That secondary account is also fee-free. As I am the owner of that account, I can add to it or draw from it, and as any transaction is supposedly one-way, it should be difficult to steal from it. But, as others have noted, that account number and routing information is out there.

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Black
I struggle with "no overdraft protection...." If you're talking about an account that will more often than not have a zero balance, can't something go wrong with that?

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Diana

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Black

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Billybob

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Rolando
I would create a dedicated account at the bank, and flush it as soon as money hits.

If it's a regular thing, then the above is very safe and simple.

I have a niece who I send money to monthly. I use to have my bank send her a check through their billpay service. However, a couple of checks went missing due to the sketchiness of her neighborhood (and post office!).

Now with this dedicated joint account, I transfer a set amount into it monthly, and she flushes it immediately. The account is completely walled off from my other accounts at this financial institution, so no concerns about any other funds being at risk even if someone gets access to that account information.

"Completely walled off" yet no monthly fees? Can you say more?

I bank at an institution that offers no-fee accounts if you have direct deposit, which I have. I have a secondary account just for instances where it might be sketchy, like eBay was several years ago or somewhere else that might not offer quite the security (i.e., my comfort levels) I would like. This secondary account is not connected to my primary: no overdraft protection, etc. if it goes dry, then only a small amount of money was there, and this minimizes losses. That secondary account is also fee-free. As I am the owner of that account, I can add to it or draw from it, and as any transaction is supposedly one-way, it should be difficult to steal from it. But, as others have noted, that account number and routing information is out there.

In the case I was thinking, overdraft protection allows the bank to pull from other accounts you own in the case where an overdraft is made: for instance, I only have $300 in account A, and $15,000 in account B. If an attempt is made to draw $500 from A, the bank pulls $300 from A and the remainder (plus any fees) from B. This allows A to remain open and covers the bill. If you were a bad person, you could drain both A and B with a high enough withdrawal. And the bank would tell me that it was completely in the right because that’s how it was set up. If overdraft protection were not enabled on A, then the most I could lose is $300. The first instance makes life “easier” but has risks, the second can make life harder if the account is hit, but protects that $15,000 I meticulously saved up for years.

Talk to the bank and make sure of what their terminology actually means. Provide scenarios and get answers.

Thanks, I know what overdraft protection is, just wondering what can go wrong if you opt out of it. Could you get hit with NSF fees if someone makes a mistake when debiting it?

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Black
Thanks, I know what overdraft protection is, just wondering what can go wrong if you opt out of it. Could you get hit with NSF fees if someone makes a mistake when debiting it?

Possibly. I probably would get hit with fees in both cases. If it’s just an error, that is easily fixed. If it’s malicious, it’s intercepted before it goes that far. If I buy something that’s more than what’s currently in the account, I put more in to cover the purchase. If I use it for someone to deposit into, I make sure to take out of it until I get to the amount I have pre-selected as “good.” I sleep better having an extra layer for my monies. Years ago, that $300 loss would have been a catastrophe. It’s not so now.

Dave,

Since this is a personal matter, I'm inclined to say there is no reason for her to use EFT-ACH for the transfers. There are various other ways for her to send the money to you that do not require your banking information.

She can use her financial institutions online bill payment system. It will send a check in the mail to you. This is fine if you can afford to wait for the bucks and/or willing to risk a check getting lost in the mail. A better alternative would be Zelle.

My brothers and I use Zelle to send each other money on occasion. Easy. Zelle itself doesn't charge any fees but your or her bank might charge for the privilege of using the service. In my experience, TD Bank and Bank of America do not charge for using Zelle.

Here are some rundowns on other methods:

[www.nerdwallet.com]

[www.marketwatch.com]

[www.investopedia.com]

Personally, if she has access to Zelle, I'd be inclined to go that route. Easy and your account is 100% shielded from any nonsense and such.

Robert

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Robert M

Personally, if she has access to Zelle, I'd be inclined to go that route. Easy and your account is 100% shielded from any nonsense and such.

Robert

Just check your bank's limits on Zelle. The first transaction will probably be limited to less than $1000. After that, one of my banks limits me to $3500/day for "established" recipients and rolling $20K per 30 days for all recipients combined, but the other to $3000/month total. I have about same amount of money in both banks, so it seems to be rather arbitrary.

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Black

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bobinmurphy

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dk62

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Gareth

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special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account.

I do not think this is true. I think once you go through this process, you can only send money to that account, you cannot withdraw from it unless you have login information. At least this is how it works with different banks (I have this set up in three banks, but there is no way my kids can draw money from my account, or even send it to me, while I can send it to theirs but not withdraw). In other words, you are setting up one-way money transfer capability, not linking the accounts. Some banks do not allow this unless both accounts are in your name. Ask the bank.

The options above are better, keeping in mind that Zelle is capped to a certain amount per person and total per month.

Hmmm, I have my bank account and my Fidelity account linked and I can do transfers in both directions. I also have the account and routing info for a company that I'm making a purchase from linked, but that one only allows me to transfer money to them, not withdraw from their account. I don't know how Fidelity set up these two accounts, but it appears to be something that can be done.

You can send money from within your Fidelity account with no fee?
Or do you have to "pull" the money from the other account?

I initiate the transfers from my Fidelity account(s) with an EFT request. There is no fee associated with an EFT type transfer to/from my bank or to the bank account associated with the company I'm making a purchase from. There _IS_ a fee if the transfer is done with a Wire Transfer though.

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bobinmurphy

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Black

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bobinmurphy

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dk62

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Gareth

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special
You already share those numbers every time you write a check to any one.

Yup.

Typically, individual accounts can't send money to another account via the routing and account number (businesses can, via ACH). With an individual account, you usually have to verify the account (i.e. 2 small deposits are made and withdrawn by the bank and you verify the amounts), and once verified, you can then transfer to/from the account, so your SIL could also withdraw from the account.

I do not think this is true. I think once you go through this process, you can only send money to that account, you cannot withdraw from it unless you have login information. At least this is how it works with different banks (I have this set up in three banks, but there is no way my kids can draw money from my account, or even send it to me, while I can send it to theirs but not withdraw). In other words, you are setting up one-way money transfer capability, not linking the accounts. Some banks do not allow this unless both accounts are in your name. Ask the bank.

The options above are better, keeping in mind that Zelle is capped to a certain amount per person and total per month.

Hmmm, I have my bank account and my Fidelity account linked and I can do transfers in both directions. I also have the account and routing info for a company that I'm making a purchase from linked, but that one only allows me to transfer money to them, not withdraw from their account. I don't know how Fidelity set up these two accounts, but it appears to be something that can be done.

You can send money from within your Fidelity account with no fee?
Or do you have to "pull" the money from the other account?

I initiate the transfers from my Fidelity account(s) with an EFT request. There is no fee associated with an EFT type transfer to/from my bank or to the bank account associated with the company I'm making a purchase from. There _IS_ a fee if the transfer is done with a Wire Transfer though.

Thanks. If I initiate a transfer of funds from Bank of America to Fidelity, it's charged as a wire transfer.

.....USAA let you link 'together' family accounts......you can transfer in but need to fill out form authorization to transfer out.......same bank so no transfer fee......

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_____________________________________

I reject your reality and substitute my own!

My son and I have a joint bank account at our local state bank (he lives 1200 miles away). We each have our own accounts at the same bank. Money can be transferred in seconds between the accounts (so far only from my account to our joint account, next to his account where he can write checks or use a debit car - or make a deposit to WellsFargo which is his everyday bank). None of the accounts have any service charge.

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Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.