What’s a Routing Number?
A routing number is a nine-digit code used to identify where are financial institution is within the United States. Routing numbers are also known as an ABA routing number, an RTN, or a routing transit number, and are often needed for sending money.
How Are Routing Numbers Used?
Routing numbers are essential for enabling banks to accurately send and receive funds by matching the correct financial institution to the right financial transaction.
Routing numbers may be required for a number of reasons. You should have your routing number handy if you are:
Transferring money internationally
Making a payment online or via the phone
Making a recurring automatic payment
Starting a direct deposit
Processing checks
What’s the Difference Between a Routing Number and an Account Number?
Routing numbers and account numbers are both equally important elements when sending and receiving money. A routing number is used to identify the specific bank any payment, cheque, or transaction needs to be sent to. Account numbers, on the other hand, are used to specify the actual account a transaction needs to be sent to/from.
You will often need to provide both numbers for any transaction to or from a bank account.
What’s the Difference Between Routing Numbers, SWIFT Codes, and IBANs?
A routing number is used to identify financial institutions, such as banks, located within the UK. This nine-digit code is important if you are arranging a transfer via ACH or a wire transfer to another bank within the US.
A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code, on the other hand, is more often used for international financial transactions. SWIFT codes are made up of either eight or 11 characters that allow banks to identify the country, location, bank, and (in most cases) branch for a foreign transaction.
Equally, IBAN codes are also more commonly used for international transfers. IBANs (International Bank Account Numbers) are codes made of up to 34 characters, the range varies from 15-32, and used to identify a specific bank account and the bank and country it belongs to.
What information do you need for a money transfer?\nWhat code you will need for your money transfer depends on whether you are sending money domestically or internationally, as well as whether you are using a bank or a money transfer operator to send money. In any case, your sending provider should clearly explain what details you need.
Why Might You Need to Know Your Routing Number?
Your routing number is a set of characters unique to your bank’s location, and is necessary to ensure your money reaches it’s destination accurately and safely.
Where to Find Your Routing Number
Your routing number is an essential piece of information that you will need to provide if you are sending a payment or receiving money from someone else. You can find your routing number in the following ways:
Visit your bank’s website
Find your routing number via your online banking account
Telephone your bank or visit your local branch
Use a routing number generator online
Look on a personal cheque (should be printed on the bottom) or at a bank statement
Sending Money Safely
The information you are asked for when sending money to friends and family is all used to ensure your money arrives at its destination safely, securely, and without delay. Security is only one component of an effective money transfer however - cost, speed, and payment options being just a few additional consideration to take into account.
Our transparent comparison engine helps you find the best way to send money for your specific transfer needs, to start here if you need to send money abroad.
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Article Factchecked by Elliot Laybourne on 20th July 2022:\nElliott is a former investment banker with a 20 year career in the city of London.\n \nDuring this time he held senior roles at ABN Amro, Societe Generale, Marex Financial and Natixis bank, specialising in commodity derivatives and options market-making. \n\nDuring this time, Elliott’s client list included Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System, amongst others. \n
