Electronic Funds Transfer: What Does It Mean?

Electronic Funds Transfer (EFT) is the digital movement of money from one bank account to another without paper checks or cash. This includes direct deposits, online bill payments, ATM transactions, wire transfers, and debit card purchases.

Essentially, it's any time money moves electronically between accounts. EFTs have made banking faster and more convenient - your paycheck can hit your account on payday without you doing anything, and you can pay bills from your couch instead of mailing checks. They're typically faster and more secure than traditional paper methods, with automatic records of each transaction. Common examples include setting up automatic payments for your rent or utilities, using Venmo or Zelle to split dinner with friends, or having your tax refund deposited directly into your account.