Here is how I was able to solve this. Thanks to\ Bill Ennals for his insight.

I want to transfer from one bank account to another bank account using the Invoicing module (Vendors | Payments | Create) using an Internal Transfer, but I get an error when I try to confirm it. (Error: There is no Transfer Account in the accounting settings Please define one to be able to confirm this transfer.)

In Developer Mode, go to the menu Technical | (User Interface) Views and edit the res.company.form and enter the transfer_account_id into the xml.

In the COA I created an account called Transfer Account, as a current asset, and set it to Allow Reconciliation.

Now when you to the General Information view, you can assign your Transfer Account to the Inter-Banks Transfer Account.

And now I can transfer between bank accounts (Customers | Payments | Create | Internal Transfer)