diff --git a/packages/desktop-client/src/components/mobile/transactions/Transaction.jsx b/packages/desktop-client/src/components/mobile/transactions/Transaction.jsx
index 328f5b929ae88331207364faabf791e8cc7517ef..285bbc4e7f742a69dff971f3bff8a13c19c59942 100644
--- a/packages/desktop-client/src/components/mobile/transactions/Transaction.jsx
+++ b/packages/desktop-client/src/components/mobile/transactions/Transaction.jsx
@@ -111,7 +111,7 @@ export const Transaction = memo(function Transaction({
   );
   const specialCategory = account?.offbudget
     ? 'Off Budget'
-    : transferAcct
+    : transferAcct && !transferAcct.offbudget
       ? 'Transfer'
       : isParent
         ? 'Split'
diff --git a/upcoming-release-notes/3258.md b/upcoming-release-notes/3258.md
new file mode 100644
index 0000000000000000000000000000000000000000..17d64d3438dbcafb2cf5f4dcb3708d6fc44f861e
--- /dev/null
+++ b/upcoming-release-notes/3258.md
@@ -0,0 +1,6 @@
+---
+category: Bugfix
+authors: [jfdoming]
+---
+
+Show category for on-to-off-budget transfers