ACH transaction limits: Transfer limits at major U.S. banks

There’s a chance you have no idea what an Automated Clearing House transfer is, or an ACH transfer, if you go with its shorter nickname. It isn’t exactly a banking term that you hear every day, but it is an integral part of your banking experience, used in everything from paying mortgages to tax payments, which is why it can be helpful to know something about it. ACH transactions are electronic payments processed through the Automated Clearing House network, which is a secure and efficient system for moving money between bank accounts.

So if you’re in the dark when it comes to ACH transfers, let’s pull out a flashlight.

What is an ACH transfer?

ACH is an abbreviation for a network called the Automated Clearing House. It’s really just a name for the electronic system that financial institutions use when they transfer money electronically. The Automated Clearing House network is operated by entities such as the Federal Reserve and is essential for moving money between bank accounts. The ACH network plays a crucial role in processing electronic payments and money transfers.

ACH transfers are typically used for transactions such as business-to-business payments, direct debit payments—including mortgages, loans, utilities, insurance premiums —and other regular and tax payments. ACH payments are a common and cost-effective payment method for paying bills, utility bills, and recurring payments such as rent and subscriptions. Government agencies and government entities also use ACH payments to distribute social security benefits, tax refunds, and other payments efficiently through the automated clearing house network.

When you do an ACH transfer, you’re transferring money between banks and credit unions and other companies. For instance, if your paycheck lands in your checking account as a direct deposit from your employer, that’s done through an ACH transfer. Direct deposits are a form of ACH credit, commonly used for payroll direct deposits, social security benefits, and tax refunds. If you’ve given a utility or a credit card your account number, bank name, and bank routing number, so they can automatically withdraw a payment every month, they’re also doing that with an ACH transfer. These automatic withdrawals are ACH debit transfers, used for recurring payments like utility bills and other bill payments.

There are two kinds of ACH transfers: ACH credits and ACH debits. An ACH credit transfer is when you send money from your bank to a family member or friend’s bank account, or receive money, such as a paycheck or tax refund. An ACH debit transfer is often used by companies that you’ve set up automatic withdrawals with, such as when your cell phone provider withdraws money from your account every month. Understanding the difference between ACH credits and ACH debits is important, as they represent the two primary types of ACH transactions.

How long do ACH transfers take?

According to Nacha, which originally stood for National Automated Clearinghouse Association, 80% of ACH transfers are finished within a day. For even faster processing, same-day ACH payments are available, often for an additional fee, allowing transactions to be completed on the same day. That said, it’s considered standard to take three business days for an ACH transfer. So in theory, if an ACH transfer takes place on a Friday, and it isn’t finished until Tuesday, you could be looking at five days.

This is why, sometimes, certain bills take a while to disappear from your bank account. If you paid your mortgage on a Monday, and it doesn’t disappear from your account until, say, Wednesday, you can thank the ACH transfer process. Banks process payments in batches through the ACH network, and the Federal Reserve helps clear these transactions, which can add to the processing time.

Why is it important to understand ACH transfers?

Most people likely go through their daily lives without knowing what an ACH transfer is—and their life is presumably blissful. However, if you frequently transfer money to, say, a struggling family member or friend, you might find your bank’s daily ACH transaction limits frustrating. These limits vary widely between banks and can impact how much you can transfer in a single day.

Understanding ACH transfers is important because they affect many aspects of your personal finances. Knowing how ACH transfers work, including transfer limits and processing times, helps you avoid unexpected delays or fees when paying bills, sending money, or receiving payments like payroll direct deposits or tax refunds. For instance, if you attempt to transfer more than your bank’s ACH limit or more than the available balance in your account, the transaction may fail due to insufficient funds, potentially leading to overdraft fees or service interruptions.

Moreover, being aware of ACH transaction limits and fees can influence your financial decisions, especially if you rely on ACH for recurring payments or large one-time transfers. It can also help you plan ahead when you need to move money quickly, so you can consider alternatives like wire transfers or expedited same-day ACH transfers if necessary. In short, understanding ACH transfers empowers you to manage your money more effectively and avoid surprises in your banking experience.

What are the ACH transfer limits at some top banks?

We’ve researched and contacted the nation’s largest banks for the ACH transfer limits that apply to consumer accounts. (As always, the ACH transfer limits may vary based on the type of account you have with the bank. Please verify with your bank to confirm the limits that apply specifically to your account.) But, generally, as you can see, consumers tend not to have to pay anything, whether they are receiving or paying money, unless there’s something unusual going on, such as needing money faster than normal. Standard ACH transfers are typically free at most banks, but some may charge a flat fee for certain types of transfers.

It should be noted that these limits are for consumers. If you have a business account, your transfer amount limits will likely be much higher.

Also worth mentioning, if you’re thinking, “Wow, my bank’s transfer limit is too small,” - sometimes there are ways around these limits. Some banks offer expedited or same-day ACH transfers for an additional fee, which may help if you need to move money quickly.

For example, Bank of America has a $1,000 daily limit, but they will lift the amount when you enroll in Safe Pass – a program that sends a code to your phone to verify that it is indeed you who is making the transaction.

Keep in mind, too, that the limits change depending on if you’re receiving the money (inbound) or if you’re sending out the money (outbound). Most banks will allow you to receive higher dollar amounts, as opposed to sending them out.

ACH transfer limits at top U.S. banks

Our analysis

On average, most banks have a daily transaction limit of approximately $5,000 per day and about $10,000 per month.

Certain banks, such as Citizens Bank, offer fairly high daily transaction limits of $10,000 per day, whereas some banks, like Fifth Third and PNC, cap their daily transactions at a lower $2,000.

Chase stands out in the crowd with a whopping $25,000 per day limit on daily transactions.

This is definitely something to consider when choosing your bank if you think you're going to be moving a lot of money around from your bank to other banks and companies. (You don't have to worry about this if you're paying bills that are bigger than the per-day limit.)

Transfer fees

Some banks impose an ACH transfer fee when you transfer money from your bank to another bank. Again, we're talking about money you're sending to a family member, a friend, a colleague. There may be a weird exception out there, but banks don't tend to charge ACH transfer fees on consumers paying their water bill from their bank account.

For the most part, ACH transfers are pretty negligible, but if you're planning on making ACH transfers on a more than regular basis, these transfer fees can add up, making it costly to you.

Banks charge roughly $3 for every transfer with standard delivery time and, on average, about $8 for next-day delivery. But a lot of banks keep things simple and charge nothing for their transfers; for instance, you'll find $0 transfer fees at Ally Bank and Capital One.

Bottom line: What do I need to know about ACH transfers?

If you lead a fairly conventional life and rarely make large financial transfers, it might not be essential to understand all the details of ACH transfers or your ACH transaction limits.

However, if you plan to send significant amounts of money to family, friends, or colleagues, or if you’re starting a business and expect to make numerous ACH transfers from your business checking account, it’s a good idea to familiarize yourself with how ACH transfers work and the limits your bank imposes.

Frequently asked questions about ACH transfers

Is there a limit on ACH transfers?

Yes, but it depends on your bank, and the range can vary, from relatively low numbers like $1,000 a day to high sums, such as $25,000. If you think you'll be moving a lot of money from one account to another, such as from your checking at one bank to a high-yield savings account at a different bank, you may want to make sure your financial institution has a steep threshold for ACH transfers.

Are ACH transfers over $10,000 reported to the IRS?

It depends. If you're a consumer—for example, if your dad sent you $10,000—you generally don’t need to report that to the IRS. However, there are specific laws regarding reporting large cash gifts exceeding $10,000, so it’s important to be aware of those regulations. On the other hand, if you run a business, such as being an attorney or real estate broker, and receive more than $10,000 in a single ACH transaction, you are required to file Form 8300 with the IRS.

What is the current same-day ACH limit?

The current same day ACH limit is $1 million. That is, if you want to transfer money from one financial institution to another, $1 million is as much as anyone can do. So if you're a billionaire or a billion-dollar company, you wouldn't be able to move more than $1 million at a time, within the same day.

What is the 5-day ACH rule?

It takes time to transfer money from one bank to another, but the 5-day ACH rule ensures that it doesn't take too much time. When an ACH transfer occurs, banks have five business days to ensure the transfer takes place. If a bank takes longer, like seven business days, to process a transaction, it could be fined or even lose the right to use the ACH system.