What is a routing number? (2024)

If you’ve ever filled out a direct deposit form or sent a wire transfer, you’ve probably used a routing number. But what is a routing number, and why is it required for certain financial transactions? Read on to learn more about routing numbers, how they work and why they are important.

What is a routing number and how does it work?

A routing number, also known as a routing transit number, is a nine-digit number used to identify your bank. Routing numbers ensure that funds are directed to the correct bank in transactions such as transfers, direct deposits and bill payments.

Routing numbers are assigned to banks by the American Bankers Association. Each bank has its own routing number.

However, larger banks often have several routing numbers corresponding to different geographical areas. And some banks may have separate routing numbers just for electronic transactions.

The structure of a routing number

A routing number should be nine digits long. You may be interested to know that each of these digits holds a specific meaning:

• The first four digits represent your bank’s location.
• The next four digits are your bank’s unique identifying number.
• The final digit essentially acts as a stamp of authenticity. It’s used to validate the previous numbers.

Routing numbers vs. account numbers

Routing and account numbers are required for many types of bank transactions, which means you’ll need to be able to tell the two apart. These numbers are far from interchangeable.

First and foremost, routing numbers are used to identify banks; account numbers correspond to individual accounts. While routing numbers are always nine digits long, account numbers are usually longer — most commonly between eight and 12 digits, but possibly up to 17 digits. Also, routing numbers are public information that anyone can find online, but account numbers should be kept private.

Routing and account numbers work together like area codes and phone numbers. Just as an area code tells you the geographic location of someone’s phone number, a routing number functions as an address for your bank. And just as you can’t call someone without both their area code and phone number, you can’t transfer someone money without both their routing number and account number.

Where to find your routing number

You can find your routing number in the bottom left corner of a check. You can also find your routing number without a check. Here’s how:

• Locate it on a bank statement.
• Use online banking or your bank’s mobile app.
• Search online. A quick Google search is usually the fastest way to find your routing number.
• Contact your bank. If you’re still in doubt, a quick phone call to your bank should be able to clear up any confusion.

How to avoid routing number errors

Mistakes happen. What can you do if you accidentally give someone the wrong routing number? The first step is to reach out to your bank, said Adam Fayed, entrepreneur and adviser to high-net-worth individuals.

“They have the expertise to assist in tracing the misdirected payment and potentially arranging its return to the sender,” Fayed said.

However, he stressed, that the best way to avoid headaches is to do your best to prevent errors from happening in the first place.

Some best practices: If you plan to make a transfer, ask for the recipient’s routing number beforehand. Your bank will need it.

If you’ll be on the receiving end, find your routing number on a blank check or online. Payment forms such as a direct deposit authorization will also typically require your account’s routing number.

Regardless of the type of transaction, “Make it a habit to double-check the account and routing numbers before providing them to anyone,” Fayed said. “Taking the time to verify the accuracy of the information significantly reduces the chances of accidental mistakes and ensures that payments are directed to the correct accounts.”