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What is a bank routing number?

Understanding the Purpose and Use of Bank Routing Numbers

BS

Business Tax Specialist

Tax Expert

3 min read
Published on 5 months ago
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What is a Bank Routing Number?

A bank routing number (also called an ABA routing number) is a 9-digit identifier used in the United States to identify a financial institution. It is used to process payments such as direct deposits, electronic funds transfers, bill payments, and paper checks, ensuring funds are routed to the correct bank.

Routing numbers are established under standards maintained by the American Bankers Association (ABA) and are used within U.S. payment systems, including the Federal Reserve and the ACH network.

Key Features of a Bank Routing Number

  • Length: Always consists of nine digits.
  • Format: The first two digits must be between 01-12 or 21-32, as specified in Form 1040 instructions.
  • Purpose: Used for direct deposit, automatic bill payments, and wire transfers.
  • Location: Typically found on the bottom left of checks, alongside the account number.

Where to Find Your Routing Number

You can find your bank's routing number on:

  • Your personal checks (bottom left corner)
  • Your bank's website or mobile app
  • By contacting your bank directly

Important Notes

Routing numbers are specific to financial institutions and may vary by region or type of account. Always verify the routing number with your bank before initiating any electronic transactions.

Source:

Form 1040

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