US (domestic) wire transfers are a fast way to transfer funds between US institutions, similar to ACH Transfers in concept, but offer two advantages:
- Speed. Wire transfers can operate in near-real-time, so many transfers can happen the same day they are initiated.
- Funds guarantee. When the wire transfers happens, the funds are guaranteed by the banks, so there isn't normally any waiting or holding period after the funds hit your account.
In general, wire transfers are more expensive, as the network fees are higher. In addition, financial institutions at either end, as well as any intermediate ones, may charge additional fees.