Bank to Bank Charges in Kenya

Interbank money transfers are a convenient way to send money from one bank to another when the need arises. Many people use interbank money transfers for personal and business purposes. 

There are several ways to make bank-to-bank money transfers in Kenya, and we’ll discuss these methods below. It’s important to consider all your options so you can choose the one that best suits your needs. 

We will also look at bank-to-bank transfer charges, highlighting specific examples from top banks in Kenya. 

What are Bank Transfers?

A bank transfer is a transaction that involves moving money from your account in one bank to another account in another bank. Bank transfers can be internal when you transfer money between two accounts at the same bank, or external, where the transfer involves two different banks. 

A bank-to-bank transaction is convenient because you don’t have to withdraw cash to move the money. You can transfer small to large amounts, depending on your chosen method. 

Interbank transfers make financial management a lot easier. For instance, if you’re saving toward a specific financial goal, you can schedule recurring transfers from one account to another. 

Factors to Consider when Making Bank to Bank Transfers

You have several options for transferring money between banks, so you must consider some factors when choosing one. Here are some of the factors to help you determine the best bank transfer method depending on your needs:

• Speed: Some bank transfer methods will be faster than others. This is an important factor to consider if you need money urgently. 
• Transfer limits: The various transfer methods have different transfer limits regarding the frequency and how much you can send at a time. Some transfer methods are more suitable for large amounts, while others are good for smaller amounts. 
• Cost: Bank transfer methods also vary in terms of cost. Some banks don’t charge you for transfers, while others require you to pay a fee. In most cases, the fee will be higher if you’re transferring a huge amount and want to complete the transaction quickly. 

Bank to Bank Transfer Methods

There are different transfer methods you can use for interbank transfers, each suitable for different situations. Here are some of the top interbank transfer methods:

Internal Fund Transfer

This is a transfer method used when you’re moving money from your account to another account within the same bank. For instance, you can use this method to transfer money from your checking account to your savings account and vice versa. 

You can complete this transaction by visiting your bank website or mobile app. Your bank will allow you to set up a one-time or recurring transfer between the accounts. The transfer is usually completed immediately or takes at most one business day. 

Electronic Funds Transfer (EFT)

This transfer method is an automated system that facilitates money transfers between local banks. You can use this method to transfer money from one bank to someone else’s account in another bank. 

There are several services that facilitate electronic funds transfer. In Kenya, most banks work with Pesalink, a 24-hour digital payment solution that provides a fast, secure, and convenient way to make bank-to-bank transfers at affordable rates.

Pesalink is a collaboration between local banks in Kenya and is managed by Integrated Payment Services Limited (IPSL), a subsidiary of the Kenya Bankers Association. This money transfer service allows users to make interbank transfers in real time, provided the currency is Kenyan Shillings. 

Writing Cheques

You can always go the traditional way and write a cheque to transfer money between banks. Nowadays, you can even deposit a cheque online or through a mobile app to complete the transaction from the comfort of your home. 

Keep in mind that cheques take a few days to clear, so it may not be the best option if the money is needed urgently. 

Bank to Bank Transfer Charges

Below, we’re going to look at specific banks and how much they charge for interbank transfers. All the banks below use Pesalink for transfers, alongside other methods, as discussed above. 

KCB Bank-to-Bank Transfer Charges

As a KCB account owner, you can use Pesalink to send or receive money anytime and anywhere. You can use the service to send any amount between Ksh 10 and Ksh 250,000 daily from your KCB account to any local bank account.

Equity Bank to Bank Transfer Charges

Equity Bank customers can also use Pesalink for fast and secure interbank transfers. To use the service, you must register with Pesalink using your Equitel mobile number and accept the terms and conditions. 

Below are the charges for bank-to-bank transfers using Pesalink:

Co-operative Bank to Bank Transfer Charges

Co-operative bank also partners with Pesalink to facilitate interbank transfers. You can transfer between Ksh 10 and 200,000 daily. Below are the charges for interbank transfers:

Family Bank-to-Bank Transfer Charges

Family Bank is another Pesalink partner, allowing customers to make transfers directly from their Family Bank to any other local bank. Here are the charges:

Closing Thoughts

Transferring money between banks is a straightforward process that shouldn’t take long, depending on your chosen transfer method. It helps to know your options so you can pick one that most suits your needs. 

Top banks in Kenya use Pesalink, a digital money transfer solution that allows their customers to make fast, convenient, and affordable transfers between banks. You can check your bank for Pesalink charges before initiating the transfer.