About Bank Routing Numbers
A bank routing number is a nine digit code that is used by banking institutions in the United States. This number is printed at the bottom of checks and deposit tickets. The purpose of the routing numbers is to identify the specific banking institution on which the negotiable instrument is drawn.
Routing numbers make it possible to process financial transactions such as direct deposits, automatic withdrawals, and check by phone transactions. These banking codes have been in place since the American Bankers Association instituted them in 1910.
- Understand the purpose of the routing numbers. The ABA routing numbers are specific to the United States, and so are only for use in domestic banking transactions. There are two types of routing numbers – one for funds being debited or credited to an account, and another specific to wire transfers. International wire transfers operate by using an entirely different code system known as SWIFT-BIC.
- Understand the routing number format. Each part of the routing number indicates a specific identification indicator. For example, routing numbers that begin with 8 typically indicate Credit Unions, while banking institutions typically use routing numbers that begin with zero, two, three, or six. The first two digits of the routing number indicate the Federal Reserve symbol, and must be in the range of 00-12, 21-32 61-72 or 80. The third digit refers to the Federal Reserve check processing center that has been assigned to your banking institution, and the fourth digit refers to the state of the Federal Reserve district your banking institution is in.
- Understand how to read the information on your check. If you look at your check, you will notice that the ABA transit number will appear in two distinct forms – the fraction form, and the MICR form. The most commonly used form is the MICR form. It is printed in magnetic ink and is also able to be read by machines. The MICR line is the nine digit code located on the bottom left side of the check.