Bank routing number
It has a major in today’s banking industry.A clarification regarding all the doubts regarding Bank routing number is very much required.
How Bank routing number can be found out?
Bank routing number of any banks can be checked out by two methods. One way is to check out the first nine digits on the left side at the bottom of your check. Another way is to check out the bank routing number online.
Does each bank have exactly one unique routing number?
Routing number helps the banks as well as the customer to understand regarding the location of your bank. Yes, as the account opening banks location does not change hence routing number also does not change. It is obvious that each bank have its own routing number.
What is a bank routing number?
A routing number is a 9-digit number allotted to a bank, credit associations or any type of financial institutions. This helps to send and to receive funds from other budgetary foundations. The routing number figures out where your record of account was opened. Routing number is also called ABA number or American Bankers Association number. Another name of routing number is routing transit number.
Instead of carefully going through checks to discover your bank’s name and conceivably confounding it with a bank of another name, routing numbers help bank staff and the machines that currently procedure checks to know precisely where cash should go. By using that method, checks proposed for Bank of America and American Bank never go to the wrong spot accidentally. This is one major advantage of bank routing number.
It is a fact that a bank will have several routing numbers, and it is contingent upon things like the area where account is opened or for any other important mission of routing number is utilized for. However it is to be understood that no two banks will ever have the equivalent bank routing number.
How the Bank Routing Number is Derived ?
It can be derived and can be understood in a very simple way. The initial two digits of bank routing number symbolize the Federal Reserve routing symbol. This represents the region of a particular bank. However, the third digit symbolizes the Federal Reserve check processing center which was initially assigned to a specific bank which later is been centralized at the Atlanta Fed.
AS far as the fourth digit of bank routing number is concerned it very well shows the location of bank, if, the bank is situated in the proper Federal Reserve city which is notified by a ‘0’or from 1 to 9 accordingly to which state in the Federal Reserve district it is located. The fifth to eighth digits of bank routing number notifies the bank’s unique American Banking Association identification number.
The final one digit, which is the ninth digit, is called the check digit and its calculation is based on an algorithm. The genuineness of the bank routing number can be verified by check out this algorithm.
When was the bank routing number developed?
It is been calculated that the bank routing number or ABA RTN (American Banking Association routing transit number) was developed in the year 1910.Hence it can be said that the bank routing number was developed almost a century ago. To be precise bank routing number which consists of nine digits was facilitated in the United States for sorting, bundling as well as shipment of bank checks to the account holder’s account.
How does the bank routing number’s digit in the 9th position work?
There is obviously reasoning behind this bank routing number nine digits. If we take all the nine digits in a bank routing number and if a checksum algorithm known as “modules 10” is applied the legality of the bank routing number digits can be verified. Initially consider the 1st, 4th and 7th digit and are multiplied by 3.Furthermore,take the 2nd,th and 8th digit and is multiplied them by 7.Subsequently the 3rd,6th and 9th digits are multiplied by 1.After adding all the results that we get it is checked if it can be completely divisible by 10.If it is possible without any reminder, the bank routing number is valid.
Consider the Bank routing number as 291070001, the calculation goes like this:
(2x3)+(9x7)+(1x1)+(0x3)+(7x7)+(0x1)+(0x3)+(0x7)+(1x1) = 120
120 is a number which can be easily divisible by 10 and has no remainder, so it is a valid routing transit number.
How to print checks with bank account number and bank routing number?
It is rather an easy job nowadays. Several online check service providers are available where one can take multiple printouts of checks easily and without any mistake. The user can print his/her account number and routing number into a blank check and then can take a print out. Majority of business people are now relying on such online check writing services.
What are the advantages of Bank routing number?
To be noted, routing number can be used for several tasks on a daily basis.
- It can be used for Depositing cash or checks directly.
- Bank routing number helps for bill payments in an automatic manner.
- Bank routing number also helps in processing of checks.
- Wire transfers.
Can i reveal my bank routing number?
According to John Smith, the famous economist and product development head at online check writer, Routing number is something that should not be kept secret as your account number. Instead it is to be known to the customers and should be accessible at any point of time. It is seen that almost all the responsible banks display routing number on their website itself as it is much needed factor while writing a check or receiving a check.
One thing that should be kept in mind is not to display or reveal account number along with routing number as it may become an easy path to access to another customer’s account. However it will be highly appreciated if routing number of a particular bank is made available on the website of the banks. Another aspect that should be candid is regarding the correct routing number or else everything related to check submission and en cashing may go wrong.