Hello there, Lisa.
I want to make sure you can record a bank transfer in QuickBooks Online (QBO).
When you're recording a transfer for a downloaded transaction, the type of transaction can affect whether you see the "Transfer funds to" dropdown menu.
If the transaction you're trying to record as a transfer is a Money in transaction located under the Received column, you'll see the Transferred from dropdown menu.
However, if it's a Money out transaction under the Spent column, you'll see the Transferred to dropdown menu.
In order to properly record the downloaded transaction as a Transfer, I recommend verifying whether it is a Money in or Money out type of transaction. Additionally, you mentioned encountering an error message when attempting to save. Could you please confirm the specific error message? It would be also helpful if you could provide screenshots to give us a better understanding of the situation.
For future reference, here's an article you can check for the best practices when reconciling your account: Reconcile an account in QuickBooks Online. It also offers guidance on addressing challenges during the reconciliation process.
If you have additional concerns about managing your transactions, feel free to reach out to the Community, Lisa. We're here to answer them for you.