How to transfer money using a person’s bank details
One of the most convenient things about having an online money account like the Arro Personal Account is being able to use the Arro Money dashboard to set up one-off transfers to other people.
Whereas a Direct Debit is usually an ongoing commitment, you can use your money management dashboard to make individual payments too, via the Faster Payments service where this is available.
This might mean paying a bill or making regular payments to an organisation that is not authorised to take money from you via Direct Debit.
But it can also be used to send money to friends and family, or to any individual or organisation whose bank details you have – fast, easy, and all without having to physically handle any cash.
What bank details do I need to send money?
The basic bank details needed to send money to another person’s account are their sort code and account number.
The sort code is important – it identifies the particular bank, building society or other account provider responsible for the account. In the case of a bank account, it can also narrow this down further, to a specific branch of that bank. It’s a bit like the town or street name in a postal address.
Next is the account number, and this is like using the house number to identify one person from everyone who lives on the street – it’s a unique number that picks out your account from everyone else with the same sort code.
That really is it, although if you are asked for the name of the payee, you should be careful to get this correct, as it may be used as an extra security measure to make sure the funds go to the right person.
Other details needed to send money
There are a few other things you might be asked to specify when sending money to another person’s account.
- The amount you wish to send (needed for all transactions for obvious reasons).
- When you wish to send it (either immediately or at a scheduled later time or date).
- Whether you want the payment to recur (e.g. weekly or monthly as a standing order).
- Your own ‘payment reference’ (e.g. if you need to tell the recipient who you are).
A payment reference could be anything from the number of an invoice you are paying, to a unique customer identifier given to you – such as your taxpayer reference, when paying your tax bill.
If you don’t have a specific payment reference to use, you can also use this field slightly less formally, e.g. you might just write ‘gas bill’ if you are transferring funds to a friend for your share of a bill.
Other ways to pay people
If you have a bill to pay, it’s worth looking on the back to see if it lists ways to pay. This is usually where you will find the sort code and account number you need, as well as any instructions about the payment reference you should use, and so on.
Larger suppliers, especially of gas, electricity, telephone services and so on, may offer Direct Debit as an option. This lets them take money from your account when a bill is due, so you don’t have to manually make a payment every time.
Standing orders are an option for fixed amounts. They are like a one-off payment but are set to recur at a regular interval, such as weekly or monthly – and you can specify an end date, for example if you only need to make payments for 12 months.
You may be able to pay some organisations via debit card, if you find this easier than making a Faster Payments transfer, but for the clearest record-keeping, the payment reference option when transferring funds directly is a handy tool when looking back at past spending.
Instant access to the Arro Money online platform
You get immediate access to manage your money online when you register an Arro Personal Account, with a signup process that takes just three minutes, and guaranteed approval for all eligible applicants.
We only need your name, your date of birth (to verify you are over 18) and your address (to verify you currently live in the UK), along with contact details to send you your login and your account/card numbers.
Just three minutes later you can have a new Arro Personal Account open and ready to use – allowing you to pay funds into the account and set up any outgoing money transfers and other payments as you wish.