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I need to get money (usually ~$500) to another U.S. person with same-day access to the funds. (I already have a bill payment schedule but it doesn't account for this.)
The fee should be <= $5
Current outgoing wire transfer fee is $20. And I looked at using PayPal but that takes 2-3 days. How can I work around this?
How do I make a debit purchase from them so that they have the funds in their bank same-day?
If it's always the same person: Open a second account, with them as the account holder. Get them a debit card for that account. To move money, do an inter-account transfer from yours to theirs. Fast, low to no fee, simple.
(For a while I had a second credit card on my account for this purpose -- the other person was a trustworthy family member -- but a debit card on its own account is cleaner and much less risky.)
You get better deals on wire transfer fees from brokerage firms and mutual fund companies.
Vanguard doesn’t charge a wire transfer fee if the amount of the wire is over $5,000; the fee is only $5 if the amount is between $1,000 and $5,000.
Fidelity doesn’t charge a wire transfer fee if your total household balance at Fidelity is above a certain amount ($15 otherwise).
Schwab gives you three free domestic wire transfers per quarter if your total household balance at Schwab is above a certain amount ($25 otherwise).
Incoming wires are free at Vanguard, Fidelity, and Schwab.
Business checking accounts sometimes get free wire transfers. For example you get 10 free wire transfers every month (5 incoming, 5 outgoing) with HSBC’s free no-minimum-balance Business Direct checking account.
Some premium level personal checking accounts also give free wire transfers. For example if you have Premier Checking at Northwest Federal Credit Union ($50,000 minimum balance or $10 monthly fee), you get free outgoing domestic wire transfers.
The Vanguard information in that article appears to be dated: they seem to allow free outgoing wire transfers without caveat even from the minimal, fee-free account.
I am aware of PNC's Performance Select checking account, which allows unlimited free domestic wire transfers. The fee for this account is $25 per month, which would be around $5 per weekly transfer. Alternatively, the fee is waived if you maintain a $5000 minimum balance or $5000 direct deposit.
If it's always the same person, you could open a joint account. Then fees are avoided altogether. How fast the funds are available depends on what you deposit. Cash is immediate.
