Having a choice is never a bad thing, especially when it comes to online money transfers. But when you want to do something as simple as move funds from another bank to your EQ Bank account, choosing how can slow your roll. Do you select Electronic Funds Transfer (EFT) or do you go with Interac e-Transfer®? Does it really matter?
Let’s break both options down first.
What is an Interac e-Transfer?
You’re likely familiar with the Interac e-Transfer, given its widespread availability in Canada. Interac e-Transfers are one of the quickest ways to send money to another person or to yourself, with funds typically arriving in under 30 minutes. Money sent through e-Transfers are available immediately, unlike EFTs, which can be subject to a hold period.
The biggest drawback with Interac e-Transfers is the lower transaction limit, when compared to EFTs. Most banks place a limit of $3,000 per day, which can be challenging if you’re looking to move larger sums of money.
What is an Electronic Funds Transfer (EFT)?
An EFT moves money between your digital bank (such as EQ Bank) and another financial institution. By linking an external account to your EQ Bank account, your EQ Bank account acts as a hub to “push” or “pull” your money.
It’s important to note that while EFTs generally have higher transaction limits than Interac e-Transfers®, they can take several days before the dollar amount appears in your bank account. Once the money is in your account, your bank may place a temporary hold on it, preventing you from using the money to, say, pay a bill.
The good news is, if you initiate an EFT via your EQ Bank account—in other words, if you pull money from your linked account to your EQ Bank account—you start earning interest immediately, even while your money is on hold. So while you may be inconvenienced by the wait time, you gain the ease and convenience of being able to move larger amounts between your accounts online.
If you’re more of the “set and forget” type, EFTs also give you the ability to transfer money between accounts automatically. With EQ Bank, you can withdraw up to $30,000 per transaction out of your account, or deposit up to $100,000 per transaction into your account.
One further distinction is that EFTs can only be used to transfer money between bank accounts in your name, whereas Interac e-Transfers can be used to send money to a third party—like the colleague who spotted you lunch money the day you forgot your wallet.
What’s the right move for me?
On the surface, both services appear similar, right? They’re both secure and they’re both easy to use—the differences, however, lie in how soon you need funds, and how much you want to transfer. So before you make any money moves, ask yourself the following two questions:
Do I need this money ASAP?
How much money do I want to transfer?
With your timeline and amount set, let’s assume you want to move money from another bank account to your EQ Bank account. Use the chart below to determine whether an EFT makes better sense for you than an Interac e-Transfer—and vice versa.
Amount to move
I need this money ASAP
I don’t need this money immediately
I want to move $3,000 or less
Best choice:Interac e-Transfer
Here’s why: By sending an Interac e-Transfer to yourself from your other bank, the money is in your EQ Bank account in 30 minutes or less, without any holds.
Best choice: EFT or Interac e-Transfer
Here’s why: With either option, if you’re pulling money from your linked account to your EQ Bank account (and you’ve initiated the pull from your EQ Bank account), your money starts earning interest right away. If your other bank has a surcharge for sending Interac e-Transfers, then you should use EFTs in this scenario.
Good to know: With EQ Bank, it’s completely free to send and receive Interac e-Transfers and EFTs.
I want to move more than $3,000
Best choice: EFT
If you think you’ll need to withdraw a large amount of money from your EQ Bank account, we recommend initiating the transfer at least 3 business days before you need the money.
Here’s why: Canadian banks currently process transactions in batches, as opposed to in real-time, which is why it takes 2 to 3 business days for bills to be paid, or for money to show up in your bank account when you use EFT.
Best choice: EFT
Here’s why: EFTs typically have much higher transaction limits compared to an Interac e-Transfer. For most banks, Interac e-Transfers have a daily limit of around $3,000.
Good to know: Any money deposited in your EQ Bank account through EFT is subject to a temporary hold. On the plus side, if you’re pulling money from your linked account to your EQ Bank account (and you’ve initiated it from your EQ Bank account), your money starts earning interest immediately!
No matter how you choose to move your money, rest assured that with EQ Bank, you’re doing it securely and easily—all while on the go. What’s more, once your money lands in your EQ Bank account, you’ll start earning high interest right away.
One further distinction is that EFTs can only be used to transfer money between bank accounts in your name, whereas Interac
Interac
Interac is a Canadian interbank network that links financial institutions and other enterprises for the purpose of exchanging electronic financial transactions. Interac serves as the Canadian debit card system and the predominant funds transfer network via its e-Transfer service.
Interac e-Transfer: Funds are typically available within 30 minutes.EFT: Takes between 1-4 business days for funds to be processed, depending on funding times.
EFTs usually process funds via an automated clearing house (ACH) while wire transfers are sent directly between one bank and another. Wire transfers have the benefit of being faster and having higher transfer limits than EFT methods, but they carry higher fees and are not reversible.
Interac e-transfers are only available in Canada for individuals who have Interac-partnered bank accounts (most of them). So, no you cannot use Interac e-Transfer in the U.S. That being said, Interac does have a collaboration with Mastercard and Western Union to allow Canadians to send International Transfers.
EFT stands for Electronic Fund Transfer and is the backbone of the Canadian payment industry.ACH stands for Automatic Clearing House and holds the weight of the American payment industry. Both do very similar things with slight differences.
An EFT can be performed within the same bank, or between banks, and typically uses payment systems such as the Automated Clearing House for ACH payments, Fedwire or SWIFT for wire transfers, or credit card and debit card networks.
Unlike EFTs, bank wires are reviewed and verified by employees at both the sending and receiving firms before they're processed to ensure the sender has the money to complete the transfer, and that the receiving account is available to accept the money.
While there is no Interac e-Transfer in the U.S., there are several ways to send money between U.S. accounts through 3rd party apps like Venmo, PayPal, Apple Cash and Cash App with a U.S. cell number. You can also transfer funds to other U.S. accounts in online banking.
Interac e-Transfer is a fast, secure and convenient way to send money to anyone in Canada using online banking. The participating bank or credit union transfers the funds using established and secure banking procedures. Transfers are almost instant, but can take up to 30 minutes depending on your bank or credit union.
To make an international transfer via Interac e-Transfer, you'll need to take the following steps³: Log into your online banking. Follow the steps to process the payment. Depending on the destination you may need to set a security question for your recipient to answer to get their money.
One further distinction is that EFTs can only be used to transfer money between bank accounts in your name, whereas Interac e-Transfers can be used to send money to a third party—like the colleague who spotted you lunch money the day you forgot your wallet.
In most cases EMTs are instant. As soon as the recipient receives an email, they can access their money. However, EFTs are bank-to-bank transactions, meaning there are certain additional processes before the money is transferred between accounts. EMTs also have lower limits than EFTs.
What is an EFT Payment? EFT payment (electronic funds transfer) is a term that includes many types of electronic payments, including ACH transfers and wire transfers. EFT payments are also called e-Payments because each transaction is completed online and doesn't include paper checks in the payment process.
Interac e-transfers, sometimes called email transfers or email money transfers, allow people and businesses to send money to one another using the recipient's email address or phone number. However, the money is not actually transferred through the email or a text message.
Introduction: My name is Jonah Leffler, I am a determined, faithful, outstanding, inexpensive, cheerful, determined, smiling person who loves writing and wants to share my knowledge and understanding with you.
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