Banks and other financial organizations in the United States utilize routing numbers to identify themselves as the exact bank or credit union where an individual bank account is opened, giving those institutions the ability to find your specific account. Hence, the transaction type, and the state (or area) where your bank is situated, are both identified by the routing number.The following 4 digits are used to identify the specific user financial institution, while the last (ninth) digit is a check figure.US routing numbers are also known as ABA (American Bankers Association) routing numbers or RTNs (routing transit numbers).Here’s the US bank routing number; it consists of a nine-digit code that is used by financial institutions to identify one another. It functions as a transaction identification code as well.
Bank Routing Number vs Bank Account Number.
In the event that you have checking accounts with two different banks, all accounts would have a distinct account number, but only the individual bank would have a distinct number.To distinguish a bank account from, for instance, a checking or money market account, a series of digits known as an account number is employed. They are allocated to every single unique account you have.
However, a bank routing number is used to identify an account with a specific financial institution within the user’s country of jurisdiction. For example, a US routing number would only be valid for valid usage in the United States alone. You can send money to your friend in Dubai on your own without involving anyone else.Nevertheless, the two distinct last four digits – the bank routing number and the account number – ensure that funds are deposited into or taken out of an appropriate account.
What Is a Routing Number Used For?
Routing numbers help banks be recognized in the country of the users when processing local ACH payments or wire transfers. Routing numbers are necessary for the Federal Reserve Banks to process financial transfers made via Fedwire. Your routing number is used each time you transact business with a banking institution in the US. When you plan to pay your bills online, you will frequently be prompted for it.
For various payment and direct deposit options, routing numbers are utilized. Among these techniques are:
• Processing of paper checks and electronic checks
• Online banking and electronic funds transfers (EFTs).
• Payments by phone.
How to Find Your US Bank Routing Number?
Your routing number can be found on a check, on the internet, or by calling the banking institutions to which you belong.
Location of US Bank Routing Numbers on Checks:
Paper checks have three sets of numbers printed at the bottom. The check routing number is the first and is used to identify your bank. If you need to locate it, you can easily find it at the bottom left corner of a check note.
US Bank Routing Number Online:
Banks and credit unions frequently post their ABA numbers online, so you can look them up if you need to find your U.S. routing number quickly and don’t have your checkbook nearby. This number could be listed immediately on the bank’s website’s home page. If not, you can get the routing number by logging into your account using an online or mobile banking app. By inputting the name, city, state, and ZIP code of the financial institution, you can use the free service provided by the American Bankers Association to look for the routing number of any bank.
Should Bank Routing Number Be Kept As Confidential?
No, a bank routing number, in contrast to a bank account number, is available to the general public and is not confidential. The same routing number applies to all bank account holders who have accounts set up in the same location. Online lookup solutions make it simple to find routing numbers. Given that numerous other bank customers share your digits, they are not necessarily private or necessary for security. Instead, in order to prevent fraud that results in the loss of money, bank account numbers should be treated as private information.If you have to cancel a check for any reason, make sure to destroy it instead of simply throwing it away.
Conclusion
Your financial institution’s ABA routing number is crucial information just like your bank account number, because a larger percentage of U.S. banks, payment processors, and financial institutions require the use of a routing number in addition to an individual’s bank details to process many aspects of financial transactions. In order to manage your everyday money, it’s important to know where to obtain your ABA routing number and account number.
Frequently Asked Questions
- Is it possible for ABA to exceed 9 figures?
Yes, routing numbers for thrifts and credit unions can be between eight and eleven digits instead of nine, adding a digit is possible.
- Why is there a different routing number on a deposit slip?
An alternate routing number is used to record deposits as a credit rather than a payment debit, such as a check paid out via a checking account.
