Online Banking: Instant transfer of funds to a friend's account?

[connect714]

(Actually more of a Personal banking question vs business banking...)

Online banking and transferring of funds is one of the most convenient way to send money. Although are we allowed to add a friend's checking account as an "external account?"

Does anyone know a bank that would allow "instant transfer of funds" online? So I can transfer money to my friend's checking account instantly online?

Any banks you can recommend for this purpose?

[myfayt]

Is this a trusted friend? Someone you have met?

[Mega B]

The trouble is that with all these money laundering rules coming in to play its getting harder and harder to move money around these days,you have to provide so many details to prove who you are its becoming a nightmare.

[DerekS]

I don't know of any instant transfers- as most banks process via ACH, which takes 3-5 days to clear at best.

I know Paypal will do instant transfer, but only if you're backed by a credit card. I don't believe they allow instant transfer from a checking account, for obvious reasons.