A domestic wire transfer moves money electronically between banks in the same country. Here’s how it works, what it costs, and when to use one.
• A domestic wire transfer is an electronic transfer of funds between two bank accounts in the same country, using a network like Fedwire in the U.S. Unlike an international wire, there’s no currency conversion involved.
• Domestic wires are commonly used for real estate closings, large supplier payments, and any transaction where same-day, guaranteed funds matter.
How It Works
You give your bank the recipient’s name, account number, and routing number, the bank verifies your funds, and the payment settles through Fedwire, usually the same business day if sent before the bank’s cutoff time.
Cost
• Outgoing domestic wire: typically $15 to $35.
• Incoming domestic wire: often free, or up to $15.
Domestic Wire vs. ACH
ACH is cheaper and works well for payroll or recurring bills, but takes one to three business days. A domestic wire costs more but guarantees same-day, largely irrevocable settlement, which matters most for large or time-sensitive payments.
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