All About Routing number (ABA) Transit Number
Having trouble locating your ABA routing number while sending or receiving wire transfers to or from other States and countries using a US bank account? To avoid canceled payments and delayed transfers, always use the correct routing number.
Like most things in today’s world, digital possibilities are flourishing. Here we can use routing numbers in financial institutions for transferring money across bank accounts and which one is ideal for your circumstances.
The American Bankers Association (ABA) created routing numbers in 1910 to facilitate check processing. Additionally, they go by the names ABA routing numbers and route transit numbers. Routing numbers are utilized in many banking activities nowadays, including direct deposits, wire transfers, purchases made through services like Venmo, phone payments, and more.
The Federal Reserve Bank has an ABA routing number if your bank or credit union keeps an account with them. Only financial institutions that fit these criteria and have a federal or state charter may apply to the ABA for a routing number.
Table of Content:
What is Routing Number?
The nine-digit routing number is used to identify a bank. Consider it an electronic address that enables a bank to send and receive money from other financial institutions.
The routing number guarantees that money goes to the appropriate account and identifies the financial institution in charge of the payment.
The first two numbers are usually between 00 and 12. While major banks may have many routing numbers, smaller banks are only given one. Routing numbers are required to set up direct deposits with your company (for your paycheck) or the IRS, pay bills, order new checks, and pay bills (for a tax refund).
The term “check routing number” is frequently used to refer to ABA routing numbers because they are applicable to paper checks.
A routing number is like an address for your bank, and it allows the people sending you money to figure out what branch of the bank that money goes to.
For example, let’s say you live in Grapevine, Texas, and have all your money in a Bank of Texas in your city.
Your Bank of Texas branch of the company has a specific routing number, and it’s different from all the others.
This prevents money that’s meant for you from being sent to a Bank of Texas in Wichita Falls, because the routing numbers are different for each branch of the bank.
What Does a Routing Number Digits Mean?
Routing numbers for banks typically have nine digits—eight in two sections and one check digit. The routing number for the Federal Reserve District is indicated by the first four digits.
A bank or credit union is uniquely identified by the following four digits, which are five through eight. A mathematical check digit is the ninth digit.
When Routing Number is Required?
You may easily carry out a range of banking operations if you understand what a routing number is and where to locate it.
Numerous routine financial operations involve routing numbers such as:
- Requesting your employer to set up direct deposit for your paycheck.
- Enabling direct deposit for government funds such as Social Security.
- Establishing an online bill payment schedule.
- Process checking.
- Transferring money by wire transfer.
- Registering for peer-to-peer payment systems like PayPal or Venmo.
- Initiating transfers between your accounts at various banks.
- Making telephone payments from your bank account.
- Changing check orders.
What is ABA and ACH Routing Numbers?
What is Difference Between ABA and ACH Routing Numbers?
ABA routing numbers are used for paper checks and ACH routing numbers are used for electronic transfers and withdrawals.
The same routing number is used by the majority of large banks nowadays for both. However, regional lending institutions frequently have separate ABA and ACH routing numbers.
The terms “check routing number” and “electronic routing number” are occasionally used to describe ABA and ACH routing numbers, respectively. It’s likely that the ABA and ACH routing numbers are the same if only one number is given, but it doesn’t hurt to check with your bank to be certain.
In contrast to paper check payments or transfers, which take longer to mail, deposit, and clear, an ACH routing number helps “clear” funds for faster transfer on the same or the next business day. Additionally, ACH payments are more affordable for businesses to use to pay salaries—in some cases, they’re even free.
How to Find Your Bank Routing Number?
There are different ways to trace the routing number:
1-Routing Number on US Bank Mobile App: The fastest and easiest way to find the routing number is to use US Bank Mobile App You can also find the routing number by following these directions:
- Login to your account and select the required account.
- Select the Account Information from the Account Options.
- Here you can find the last four digits of your account number which links to the full account number and the routing number.
2-Routing Number via Online Banking:
- By entering into online banking and selecting the correct account, you can get your routing number there.
- The account title, the last four digits of your account number, and the routing number are all visible in the top box.
- Simply choose the link for the final four numbers if you also require the whole account number.
3-Routing Number on Monthly Statement:
- The top right corner of your monthly statement has your routing number.
- With e-statements, you can guarantee that your monthly statement is always available to you.
4-Routing Number on Check Book:
- The nine-digit number printed in the bottom left corner of every check is the routing number.
- The second set of numbers printed on the bottom of your checks is your unique account number, which is typically between 10 and 12 digits long.
- The check number is located at the rightmost number.
5-Routing Number on US Bank Routing Number Directory:
- Numerous routing numbers belonging to U.S.
- Bank identify the various areas in which we conduct business.
- The region in which you opened your account will be represented by your routing number.
Difference between ACH Routing Number and Wire Transfer:
- ACH transactions, which are carried out through a third-party clearinghouse, are automatic electronic transfers between financial institutions. Wire transfers, on the other hand, are instantaneous electronic transfers between financial institutions.
- Due to the fact that wire transfers do not go through a third party to clear, they are processed more quickly than ACH transfers. While ACH transactions could take a few days, wire transfers can be finished within hours or even minutes of being lodged.
- ACH transfers typically clear automatically, whereas wire transfers typically require manual verification by each bank before they are approved.
- Wire transfers from and to banks normally cost between $15 and $65 whereas ACH transfers are typically free.
- Wire transfers are best reserved for significant transactions involving big sums of money or transfers when the money must be received promptly due to the additional expense. The standard for routine transactions is ACH transfers.
Difference between Routing Number and Account Number:
A Routing Number is always nine digits long. This is helpful because it standardizes routing numbers across the U.S. banking industry. Whereas, for Account Numbers, most U.S. bank account numbers are 8 to 17 digits long.
- A Routing Number is often the first number, which is nine digits long. The Account Number is typically the following set of numbers (usually between 10 and 12 digits). The check number itself is typically the third.
- Without a Routing Number and Account Numbers, banks wouldn’t be able to handle the volume of daily transactions they currently handle because these numbers clearly indicate where money is to be deposited and/or withdrawn.
- It’s normally safe to include your full Account Number and Routing Number when paying bills online because this information appears on your paper checks.
Find Routing Number for Your Bank
We’ve mention here the routing numbers for some of the biggest banks in the US.
Frequently Asked Questions
No. The number on an ATM debit card is not a routing number. Debit cards and credit cards don’t use routing numbers. The financial institution links the ATM debit card to your bank account through its banking system.
No. All bank account holders with accounts set up in the same area have the same routing number. Routing numbers are readily available through online lookup tools. However, a bank account number should be considered confidential to avoid fraud resulting in the loss of funds. Treat a bank account number with the same degree of confidentiality as a Social Security Number.
No, your IBAN code and SWIFT code are different. Your IBAN identifies the individual bank account you’re using to make your overseas transfer, whereas your SWIFT is much shorter and used to identify a specific bank to verify international payments.
If you have a US bank account, you’ll need your routing number for every transfer and if it’s international, you’ll also need your SWIFT code.