If you are using a US bank account to conduct money transactions or plan to open a bank account in the US, you should probably be aware of two key pieces of information.
- Routing Number
- Account Number
In the USA, banks use a nine-digit code to identify themselves, namely routing numbers. Depending on the purpose, they are named differently.
- Routing transit numbers
- Check routing numbers
- Fedwire numbers
- ABA routing numbers
These numbers indicate the respective bank and stand as the identification numbers of what bank your account is held.
What is the purpose of the routing numbers?
The routing numbers are used for a variety of purposes. Such as to process checks or electronic transactions (funds transfers, direct deposits, bill payments, etc.). The routing numbers ensure that the fund transactions are successfully delivered to the accurate account and on time.
While the Federal Reserve Banks use routing transit numbers to process Fedwire funds transactions, the Automated Clearing House (ACH) network uses the routing numbers to provide electronic transactions – salary or pension payments, etc.
Small banks generally have one routing number, while large multinational banks may have several different ones, based on the state the bank resides or holds the account in. The numbers establish a direct deposit 9such as a paycheck), pay consumer bills, or clear tax payments. Also, the routing numbers differ for domestic and international wire transfers.
Where can I find the routing number?
Okay! Well, you can easily find it either by logging into your online banking account or on your checks. The checks consist of the routing numbers, generally at the bottom of the checks as a nine-digit number. Typically you will notice three groups of numbers at the bottom of every check. The first being the routing number; the second, account number, and the last one is the actual check number. However, the sequence could differ based on the respective banks.
You can also find the routing numbers through the bank-issued statement.
Here is the Federal Reserve’s official website, where you can find your bank’s routing number.
What if I use the wrong routing number?
That’s a complicated situation! If you have used the wrong number, your transactions could be delayed. In fact, processing time might be higher. As a result, the transaction could cost you a lot.
To get rid of the exhaustive fund’s transaction process and eliminate the errors during the routing number-based transaction, make sure you use the right number. If you are still unsure about your routing number, get in touch with your respective banks to verify your number.