In order to be able to transfer money from one account to another, a routing number is needed to settle the transaction. If you’re not sure on what a routing number is or where to find yours, continue reading below to see what it is and where you can find it.
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What is a routing number?
A routing number is a nine-digit electronic address for transactions between financial institutions in the United States. This number allows financial institutions to locate the bank where you opened your account.
A routing number, along with your bank account number, to trace and ensure the money you send or receive ends up in the right place.
They are sometimes referred to as an ABA RTN, which stands for American Bankers Association Routing Transit Number.
When do I need a routing number?
You will need your routing number to send or receive money directly from your checking account for stuff like:
- Direct deposits from your employer
- Automatic billing
- Sending money to a family member or friend
- Deposit your money from a third-party payment app into your bank account (Venmo or PayPal)
- Transferring money between your bank accounts
- Transferring money between savings account and a retirement or investment acccount
- Wiring a transfer
Where can I find a routing number?
On your checks
For checking accounts, the routing number is located on the bottom left of a check. Make sure to not confuse it with your account number that is located on the bottom right of the check.
You can also find your routing number because it’s also printed on your monthly statement.
If you don’t have checks, you can find your routing number by signing into online banking, you can search for the term “routing number” or you can find it on your bank’s website!
Here are some routing number from banks:
On the ABA website
The American Bankers Association also provides bank routing information. You can search it by putting your bank’s name, city, state, and zip code.
Types of Routing Numbers
The routing number you use depends on what you’re doing whether it’s transferring money via Automated Clearing House transfer, domestic wire transfer, or international wire transfer.
Automated Clearing House (ACH)
ACH transfers are electronic transfers between financial institution conducted through a third-party clearinghouse. The are the most common types of money transfers.
Banks and third-party payment apps like Venmo, Square, and PayPal uses the ACH system to send money to other people or businesses.
ACH transfers are usually free, but it may take several business days to complete. If you initiated after the business hours, it won’t be processed until the next business day.
Domestic Wire Transfers
Domestic wire transfers are direct bank-to-bank transfers that require no third-party clearing house. But if you need to send money between two of your bank accounts, this could be done via wire transfer.
Please note that some bank uses different routing numbers for wire transfers. So before you complete a wire transfer, you’ll need to check with your bank for the correct wire transfer routing number.
Wire transfers are great if you need to send money ASAP since they are processed in real-time. However, they typically cost between $20-$30, as opposed to a free ACH transfer.
International Wire Transfers
If you are needing to receive a transfer from overseas, you’ll need to provide the sender with a SWIFT (Society for Worldwide Interbank Financial Telecommunication) code. SWIFT codes are routing numbers for international transactions between banks. They have eight to eleven digits with letters and numbers, unlike the routing number.
For example, if you work overseas and want to send money from your international account to a US, you’ll need a SWIFT code. Just call your bank or visit its website to find the SWIFT code for an international wire transfer.
Routing numbers are nine-digit codes that enables banks to identify the location of your bank account. You can use the routing number to make transactions, such a setting up direct deposit or using an electronic payment service.
However, sending or receiving money internationally, you’ll need a SWIFT code, which is how banks locate each other internationally.