Digital banking apps have quickly grown in popularity thanks to its ability to make money transfers almost instantaneously with the touch of a button rather than waiting for wire transfers to be processed or manually withdrawing cash from the ATM.
There are various apps on the market that can be used for payments and transfers, however, the spotlight has been shining on Zelle recently. The user-friendliness and simplicity of this banking app has earned it one of the top spots of popularity with U.S. based users.
Much like with any app, Zelle too has some limitations on the maximum amounts transferable and it is dependent on the bank it used with.
How does Zelle work?
In 2016, seven of the largest banks in the United States, including Bank of America and Wells Fargo, came together to create Zelle and today, it is one of the most popular banking apps used by consumers throughout the States. Through the Zelle app, users can transfer money within an instant without any need for the recipient’s banking details. The only information that is needed is the recipient’s mobile number or email address.
The speed at which funds can be transferred is remarkable, however, the app has limits in place regarding the total amount that can be sent. Since Zelle works in conjunction with your bank account, and as such has to be linked to it, the transfer limits vary from bank to bank.
Transfer limits for various banks
In order to enusre safety and curb any potential for fraud, the app has certain weekly or monthly transfer limits in place. The limit amount depends on the bank used by the individual. Some of the limits established by banks around the country are as follows:
Bank of America
- Daily limit: $3,500
- Monthly limit: $20,000
BMO Harris
- Daily limit: $750 for instant transfers and $1,000 for scheduled transfers
- Monthly limit: $5,000 for both options
Capital One
- Daily limit: $3,000
- Monthly limit: Not disclosed
Chase
- Daily limit: Varies between $500 and $10,000 depending on the account
- Monthly limit: Not disclosed
Citibank
- Daily limit: $2,500 (for accounts older than 30 days)
- Monthly limit: $15,000
Discover Bank
- Daily limit: $600
- Monthly limit: Not disclosed
First Bank
- Daily limit: $1,000
- Monthly limit: $3,500
TD Bank
- Daily limit: $1,000 for instant transfers, $2,500 for scheduled transfers
- Monthly limit: $5,000 for instant transfers, $10,000 for scheduled transfers
Truist Bank
- Daily limit: $2,000
- Monthly limit: $10,000
USAA Federal Savings
- Daily limit: $1,000
- Monthly limit: $10,000
Wells Fargo
- Daily limit: $3,500
- Monthly limit: $20,000
These figures are the maximum transferable amounts for each respective bank, however, it is possible that Zelle may impose further restrictions on the user. These additional restrictions are dependent on the “type of account you have, your available balance, and your payment history.”
As such, it is best to check with your bank prior to making a transfer, particularly if it is for a larger amount.
In certain cases, banks might also allow the user to increase their weekly or monthly limits, provided they are able to “demonstrate a consistent transaction history, particularly involving the same contacts.” In such a case, the bank will allow for higher transfer amounts to those specific contacts. For the remainder of contacts, the standard limitations will continue to apply. Since the banks are likely to grant these kinds of concessions within reason, it is best to consult with your bank first when making larger transfers so as to avoid unnecessary confusion.
How safe is Zelle?
When using these kinds of third-party apps for money transfers, it is always best to limit your transactions to people you know personally and trust.
That being said, Zelle is a generally safe to use platform for money transfers since confidential financial information is not needed to process a transaction. However, users should still do their own due diligence by enabling authorization and monitoring features to ensure all payments are made correctly and safely.