What is a Bank Giro?

A bank giro is a way to move money from one bank account to another account. The accounts can even be at different banks. Bank giro is also called a bank transfer.

When you do a bank giro, you tell your bank to take money from your account. Then your bank moves that money to the other account you picked. This makes it easy to pay people or businesses straight from your bank account.

How Bank Giros Work

Bank giros make it really simple to send money. All you need is the other person or business’s bank account info. This is usually their account number and the name or code for their bank.

You can set up a bank giro online, on your phone, or sometimes even in person at your bank. You just fill out a form with the payment details. This includes stuff like:

How much money to send
The account number and bank code for where the money is going
When you want the money to be sent (like right now or on a certain date)
Any notes or references to include with the payment

After you submit the payment, your bank handles the rest. They take the money from your account and make sure it gets to the right place. This whole process is electronic. The money moves straight from one bank account to the other without any cash or checks changing hands.

Why People Use Bank Giros

There are loads of reasons why bank giros are popular:

They are fast. The money usually shows up in the other account pretty quick, like within a day or two.
They are convenient. You can send a bank giro anytime from your computer or phone. No need to mail a check or go to the bank in person.
They are safe. Bank giros move money straight between bank accounts. There’s no cash or checks to get lost or stolen.
They are cheap. A lot of banks don’t charge any fees for bank giros, especially if the accounts are at the same bank. Even when there are fees, they are usually pretty low.
They are easy to track. Your bank keeps records of all your bank giros. You can see them on your statement or in your online banking. This makes it simple to track your spending and prove you made a payment if needed.

When to Use a Bank Giro

You can use bank giros for all sorts of payments. Here are some of the most common ones:

Paying Bills

Loads of bills can be paid with bank giro. Think stuff like your electric, gas, water, phone, or internet. The company usually gives you their bank details. Then you can just set up a bank giro whenever you need to pay.

Some people even set up automatic bank giros for their regular bills. This way, the bill gets paid on time every month without you having to remember to do it.

Sending Money to Friends and Family

Bank giros are super handy for paying back a friend or sending some cash to your family. Maybe you are splitting a restaurant bill or your little sister needs some money for college. As long as you have their bank account info, you can send them money in a snap with a bank giro.

A lot of banks even have special features in their apps for sending money to friends and family. The apps make it really easy to set up the payment and let the other person know the money is on the way.

Getting Paid by Your Work

If you have a job, you probably get paid with bank giro. This is how most companies do payroll these days. They just send a bank giro straight to your account on payday. No need for them to print checks or for you to go to the bank to deposit them. The money just shows up in your account like magic.

Shopping Online

When you buy something online, you often have the choice to pay with bank giro. This can be a good option if you don’t want to use a credit card or the seller doesn’t take cards.

The website will usually give you their bank details at checkout. Then you just go to your bank (online or in the app) and set up the giro. Once the seller sees the money in their account, they send you the stuff you bought.

Downsides of Bank Giros

While bank giros are great in a lot of ways, there are a couple of downsides to keep in mind:

You need the other account’s details. To send a bank giro, you have to know the account number and bank code for where the money is going. Sometimes this info can be hard to find or the other person might not want to share it.
The money moves slowly sometimes. Even though bank giros are usually pretty quick, they aren’t instant. It can sometimes take a day or two for the money to show up in the other account, especially if the banks are different. This can be a pain if you need the money to get there faster.
You can’t cancel a bank giro once it’s sent. After you hit send on a bank giro, that’s it. The money is on its way and you can’t call it back. This means you have to be extra careful to put in the right account details and amount before you send the giro.
Some places don’t take bank giros. While a lot of businesses are happy to be paid by bank giro, some still prefer other methods like cash, checks, or cards. It’s always a good idea to ask how someone wants to be paid before you send them a giro.

Difference Between Bank Giros and Other Payment Types

Bank giros are just one of the ways you can move your money around. Here’s how they stack up against some other popular payment methods:

Bank Giros vs Checks

Checks and bank giros are pretty similar in some ways. They both let you pay someone using money from your bank account. But there are a few key differences:

Checks are physical pieces of paper and bank giros are all electronic
You have to mail or give a check to the other person, but bank giros go straight from your account to theirs
People have to go to the bank or use an app to deposit a check, but with a giro the money just lands in their account
Checks can bounce if you don’t have enough money to cover them, but the bank won’t let you send a giro unless you have the cash

So while checks can sometimes be handy, bank giros are usually faster and easier for everyone involved.

Bank Giros vs Card Payments

Paying with a credit or debit card is a bit different than using a bank giro:

With a card, the money comes out of your account right away (or you borrow it from the card company and pay it back later). With a giro, there might be a short delay before the money moves.
You usually need a card machine or website to pay by card, but for a giro you just need your online banking or app.
Cards come with some extra protections if something you buy is faulty or gets lost. With a giro, you don’t have that safety net.

Cards are super convenient for things like shopping in person or paying for a meal. But for sending money to people you know or paying bills, bank giros are often easier.

Bank Giros vs Cash

Paying with cash is way different than using a bank giro:

Cash is physical money and giros are just moving numbers around between banks
You have to have the cash on you to use it, but you can send a giro anytime as long as you have internet access
If you lose cash, it’s gone. But if something goes wrong with a giro, you can usually get help from your bank to track it down.

Cash is nice to have for small purchases or when you want to keep your spending really private. But for bigger stuff or paying people far away, bank giros are way safer and more convenient.

The Future of Bank Giros

Bank giros have been around for a while, but they keep getting better as technology improves. In the future, we can expect bank giros to get:

Faster: With new real-time payment systems, the money from a giro might show up in the other account almost instantly, even between different banks.
Easier: Banks keep making their apps and websites more user-friendly. Setting up a giro will get simpler and simpler.
More secure: As banks beef up their cybersecurity, bank giros will become even safer from fraud and hacking.
More widely accepted: More and more businesses are seeing the benefits of bank giros. In the future, you’ll probably be able to use them in even more places.
More international: Right now, bank giros mostly work within the same country. But banks are working on ways to make them work smoothly across borders too.

With all these changes, bank giros are set to keep being a top choice for easy, safe, and quick payments well into the future. Whether you are paying a bill, sending cash to a friend, or shopping online, chances are good you’ll be using a bank giro to get it done.