diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9931e9ea6e7..88e832e294a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -162,6 +162,7 @@ Ref: https://keepachangelog.com/en/1.0.0/
 
 ### Bug Fixes
 
+* (bank) [#13691](https://github.com/cosmos/cosmos-sdk/issues/13691) Fix unhandled error for vesting account transfers, when total vesting amount exceeds total balance.
 * [#13553](https://github.com/cosmos/cosmos-sdk/pull/13553) Ensure all parameter validation for decimal types handles nil decimal values.
 * [#13145](https://github.com/cosmos/cosmos-sdk/pull/13145) Fix panic when calling `String()` to a Record struct type.
 * [#13116](https://github.com/cosmos/cosmos-sdk/pull/13116) Fix a dead-lock in the `Group-TotalWeight` `x/group` invariant.
diff --git a/types/coin.go b/types/coin.go
index cf86af8c039..8e0ee7f86b7 100644
--- a/types/coin.go
+++ b/types/coin.go
@@ -134,7 +134,7 @@ func (coin Coin) SafeSub(coinB Coin) (Coin, error) {
 
 	res := Coin{coin.Denom, coin.Amount.Sub(coinB.Amount)}
 	if res.IsNegative() {
-		return Coin{}, fmt.Errorf("negative coin amount")
+		return Coin{}, fmt.Errorf("negative coin amount: %s", res)
 	}
 
 	return res, nil
diff --git a/x/bank/keeper/keeper_test.go b/x/bank/keeper/keeper_test.go
index 14fa86537af..45746bd39ec 100644
--- a/x/bank/keeper/keeper_test.go
+++ b/x/bank/keeper/keeper_test.go
@@ -567,6 +567,25 @@ func (suite *KeeperTestSuite) TestSendCoins() {
 	require.Equal(newBarCoin(25), coins[0], "expected only bar coins in the account balance, got: %v", coins)
 }
 
+func (suite *KeeperTestSuite) TestSendCoins_Invalid_SendLockedCoins() {
+	balances := sdk.NewCoins(newFooCoin(50))
+
+	now := tmtime.Now()
+	endTime := now.Add(24 * time.Hour)
+
+	origCoins := sdk.NewCoins(sdk.NewInt64Coin("stake", 100))
+	sendCoins := sdk.NewCoins(sdk.NewInt64Coin("stake", 50))
+
+	acc0 := authtypes.NewBaseAccountWithAddress(accAddrs[0])
+	vacc := vesting.NewContinuousVestingAccount(acc0, origCoins, now.Unix(), endTime.Unix())
+
+	suite.mockFundAccount(accAddrs[1])
+	suite.Require().NoError(banktestutil.FundAccount(suite.bankKeeper, suite.ctx, accAddrs[1], balances))
+
+	suite.authKeeper.EXPECT().GetAccount(suite.ctx, accAddrs[0]).Return(vacc)
+	suite.Require().Error(suite.bankKeeper.SendCoins(suite.ctx, accAddrs[0], accAddrs[1], sendCoins))
+}
+
 func (suite *KeeperTestSuite) TestValidateBalance() {
 	ctx := suite.ctx
 	require := suite.Require()
diff --git a/x/bank/keeper/send.go b/x/bank/keeper/send.go
index afaf44b4d15..dad56a3f882 100644
--- a/x/bank/keeper/send.go
+++ b/x/bank/keeper/send.go
@@ -233,17 +233,24 @@ func (k BaseSendKeeper) subUnlockedCoins(ctx sdk.Context, addr sdk.AccAddress, a
 	for _, coin := range amt {
 		balance := k.GetBalance(ctx, addr, coin.Denom)
 		locked := sdk.NewCoin(coin.Denom, lockedCoins.AmountOf(coin.Denom))
-		spendable := balance.Sub(locked)
 
-		_, hasNeg := sdk.Coins{spendable}.SafeSub(coin)
+		spendable, hasNeg := sdk.Coins{balance}.SafeSub(locked)
 		if hasNeg {
-			return sdkerrors.Wrapf(sdkerrors.ErrInsufficientFunds, "%s is smaller than %s", spendable, coin)
+			return sdkerrors.Wrapf(sdkerrors.ErrInsufficientFunds,
+				"locked amount exceeds account balance funds: %s > %s", locked, balance)
+		}
+
+		if _, hasNeg := spendable.SafeSub(coin); hasNeg {
+			return sdkerrors.Wrapf(
+				sdkerrors.ErrInsufficientFunds,
+				"spendable balance %s is smaller than %s",
+				spendable, coin,
+			)
 		}
 
 		newBalance := balance.Sub(coin)
 
-		err := k.setBalance(ctx, addr, newBalance)
-		if err != nil {
+		if err := k.setBalance(ctx, addr, newBalance); err != nil {
 			return err
 		}
 	}