What Is a Routing Transit Number?

What Is a Routing Transit Number?

Let me explain what a routing transit number is. It's a nine-digit number that identifies a bank or financial institution when you're clearing funds for electronic transfers or processing checks in the U.S. You also use it in online banking and with clearinghouses for financial transactions.

Remember, only federally chartered and state-chartered banks eligible to maintain an account at a Federal Reserve Bank get issued these routing transit numbers.

Key Takeaways

A routing transit number, or RTN, is that nine-digit number identifying a bank when clearing funds or processing checks. The American Bankers Association set them up in 1910, and sometimes people call them ABA numbers. You see them in online banking and clearinghouse transactions. They're common for wire transfers or direct deposits. For international stuff, you use SWIFT or IBAN numbers, but routing numbers handle domestic U.S. transfers.

How Routing Transit Numbers Work

Your bank's routing transit number sits at the bottom of a check—it's the first nine digits on the far left. The first four digits point to the Federal Reserve Bank of the district where the institution is located. The next four identify the bank itself, and the last digit classifies the check or negotiable instrument.

After the routing number on a check, you have the account number and check number for the bank drawing the funds. Every check from state or federally chartered banks has a routing transit number at the bottom.

Checks also feature a routing symbol at the top, which does basically the same job as the routing number at the bottom. It's known as the fractional bank number.

How Routing Transit Numbers Are Used

You often use routing transit numbers when setting up a wire transfer with your personal or business bank. A wire transfer is an electronic payment across a network run by hundreds of banks worldwide.

Routing numbers are nine digits long, while account numbers vary in length. Your routing number always starts with 0, 1, 2, or 3.

In a wire transfer, no physical money moves between banks, but information does—like the recipient's account details, bank account number, and transfer amount. That's why a correct routing number is crucial to direct sensitive info to the right party and ensure the transaction goes smoothly.

These numbers also play a role in direct deposits, like employer payments to employees or IRS tax refunds. Direct deposit lets a sender put funds straight into your account electronically, skipping paper checks.

Routing Number vs. Other Banking Numbers

Terms like routing number, transit number, and ABA number all mean the same as routing transit number. ABA stands for American Bankers Association, which created these in 1910.

People use routing, transit, and ABA interchangeably. They started for checking accounts but now identify banks in electronic transactions too.

What's a SWIFT Code?

A SWIFT code is a similar code for banking transactions, but it's mainly for international transfers. An international bank account number (IBAN) is a long alphanumeric code identifying the country, check number, bank code, branch code, and account number—also mostly for international deals.

Special Considerations

Before the internet and computers, check fraud was rampant. Fraudsters faked routing numbers on checks and cashed them locally. Without connected systems, verifying numbers was hard, leading to fraud and theft.

LexisNexis Risk Solutions registers routing numbers officially, and new financial institutions apply for them. One institution might have multiple routing numbers for different methods, like ACH transfers, paper transactions, or wires.

What Is a Routing Number?

A routing number is a nine-digit code identifying a financial institution. Banks use them to process transactions, telling everyone involved which institutions are handling the funds and who gets or sends them.

Where Can I Find My Bank's Routing Number?

Look at the bottom of a paper check for your bank's routing number. You can also find it by logging into your online banking portal—usually right where your account number is.

Which Numbers on a Check Are Routing Numbers?

On a check, the furthest-left numbers at the bottom are the routing number. The left-most nine digits are it, while the ones on the right are your account and check numbers. The check number at the bottom matches the one in the upper right corner.

How Are Routing Numbers Used?

Institutions use routing numbers to communicate between banks. The number identifies your institution so transacting parties know where your account is.

The Bottom Line

A routing transit number, or RTN, is a nine-digit code identifying a bank for clearing funds or processing checks. The ABA set them up in 1910, and they're also called ABA numbers. You use them for wire transfers or direct deposits.

Know how to find yours: it's the first nine digits at the bottom left of a paper check. The first four designate the Federal Reserve Bank location, the next four the bank, and the last a check classifier. In online banking, log in to see it, probably near your account number.