If you’ve ever needed to transfer money to another bank account in Malaysia, you’ve probably come across IBG (Interbank GIRO).
It’s one of the most common methods for moving money domestically, but let’s be honest—figuring out when your money will arrive and whether it’s the best option can sometimes be confusing.
Let’s break it down so you know exactly how IBG works, when to use it, and how it compares to other transfer options.
What is an IBG Transfer?
IBG (Interbank GIRO) is an electronic payment system that allows customers to transfer money between different banks in Malaysia.
It’s managed by Payments Network Malaysia (PayNet) and is designed to be a low-cost option for interbank transactions.
People use IBG for things like:
- Paying loan and credit card bills at other banks.
- Sending money to friends and family who use different banks.
- Making scheduled payments for regular expenses.
It’s a trusted and widely used method, but there are some quirks you should be aware of.
How IBG Transfers Work
The most common way to make an IBG transfer is through online or mobile banking, and it costs RM0.10 per transaction. Here’s how to do it:
- Log in to your online/mobile banking account.
- Select “Funds Transfer” and choose IBG.
- Enter the recipient’s details (name, account number, and amount).
- Confirm and complete the transfer.
Other ways to make an IBG transfer include:
- Over-the-counter (OTC) at bank branches: Usually more expensive, but fees are often waived for senior citizens and people with disabilities.
- ATM & phone banking: Some banks offer these options, but availability varies.
When Will Your Money Arrive?
Timing is everything when it comes to IBG transfers.
Unlike instant transfers, IBG transactions are processed in batches, meaning your money won’t arrive immediately.
Here’s the general schedule for transfers on working days (Monday to Friday):
| Transfer Time | Money Arrives By |
| Before 5:00 am | 11:00 am (same day) |
| 5:01 am – 8:00 am | 2:00 pm (same day) |
| 8:01 am – 11:00 am | 5:00 pm (same day) |
| 11:01 am – 2:00 pm | 8:20 pm (same day) |
| 2:01 pm – 5:00 pm | 11:00 pm (same day) |
| After 5:00 pm | 11:00 am (next working day) |
What About Weekends and Public Holidays?
Transfers made outside working hours (weekends and public holidays) will only be processed on the next working day, so plan ahead if you need your money to arrive on time!
IBG vs. Instant Transfer: Which One Should You Use?
1. Speed
- IBG: Takes a few hours or up to one working day.
- Instant Transfer (DuitNow/IBFT): Processes immediately, even on weekends and holidays.
2. Cost
- IBG: RM0.10 per transaction (online/mobile banking).
- Instant Transfer: Historically RM1 per transaction, though some banks offer it for free.
3. Recipient Details
- IBG: You need the bank account number.
- Instant Transfer: You can use a mobile number, MyKad number, or business registration number.
If you’re in a rush, go for Instant Transfer. But if you want to save money and don’t mind waiting, IBG is the cheaper option.
Related: What is DuitNow Malaysia: All You Need to Know
Can You Use IBG for International Transfers?
Nope—IBG is strictly for domestic transfers within Malaysia. If you need to send money abroad, you’ll need alternatives like:
- Wise (formerly TransferWise): Low-cost, transparent fees.
- Bank wire transfers: Often expensive and slow.
- Western Union: Good for cash pickups but can be pricey.
Related: Why I Store My Cash in USD (and More!) with Wise Malaysia
What If Something Goes Wrong with an IBG Transfer?
Mistakes happen. Here’s what you should do if you face issues:
1. Wrong Account Number?
- If the number doesn’t exist, the transfer will bounce back.
- If it’s an existing account but the wrong person, you’ll need to contact the recipient and ask for a refund. The bank won’t reverse it automatically.
2. Unsuccessful Transactions on Non-Working Days?
Refunds are usually processed by 5:00 pm on the next working day.
3. Delays?
While IBG transactions follow a schedule, delays can happen due to:
- Technical issues.
- Additional verification steps required by your bank.
- Human error (e.g., mistyped details).
If your transaction is significantly delayed, call your bank for assistance.
Why IBG is Still Useful
Even though Instant Transfers are faster, IBG still has its perks:
- Super cheap: RM0.10 per transaction.
- Available for bill payments and scheduled transfers.
- Secure: Done through your bank’s encrypted systems.
- Paperless: No need for cheques or manual processing.
Related: FPX Malaysia: A Simple & Secure Way to Pay Online
Tips for Using IBG Transfers Smartly
- Check the cut-off times before making a transfer.
- Double-check recipient details (especially the account number!).
- Save your transaction receipts for future reference.
- Use Instant Transfer for urgent transactions and IBG for less time-sensitive payments.
- For international transfers, use Wise or other alternatives.
Learn more about Interbank GIRO (IBG) Transfers!
Final Thoughts: IBG is Reliable, But Know When to Use It
IBG transfers are affordable and reliable, but they’re not instant. If you’re transferring money that’s not urgent, it’s a great option.
But if you’re in a hurry, DuitNow or Instant Transfer is the better choice.
Have you ever had an IBG transaction delayed or stuck? Let me know in the comments below—I’d love to hear your experiences!
