[ad_1]
The world of smartphones has made us all a little less likely to remember important strings of numbers.
While convenient, our reliance on them for everything from a significant other’s cell number to our own email passwords has made it challenging to recall important banking numbers that we need to have on hand.
This includes your checking account number and your bank’s routing number, both important for direct deposit payments.
Why You Need Your Routing Number and Account Number
You’ll need your account number and the routing transit number for most banking transactions, including wire transfers, direct deposits, electronic transfers between banks, bill payments, other automatic payments and even money transfer apps like Venmo, PayPal and Cash App.
But what do these account and routing numbers actually mean?
What’s a Bank Account Number?
Your bank account number is a unique identifier connected just to that individual account. No one else at the institution shares this number, and you’ll have a unique account number for each account you own there.
The full account designation is usually between eight and 12 digits, which varies from institution to institution.
What’s a Routing Number?
A routing number is a nine-digit code assigned by the American Bankers Association (ABA) to identify the bank that issues a check. The ABA routing number identifies the institution, so that’s why all the accounts you (and everyone else) have with one bank use the same number.
ABA routing numbers indicate that an institution is either federally or state chartered in the United States and has an account with the Federal Reserve. It’s smart to know where to find the bank routing number so your money gets to your financial home.
Routing Numbers vs. Account Numbers
Routing numbers and account numbers work together to ensure money goes into and comes out of the right accounts.
The key difference? A routing number is your bank’s unique identifier; an…
[ad_2]
Source link
