I was trying to set up a direct deposit, and it required a routing number. But what is a routing number?
Routing number is a nine-digit number that is used to identify a bank or credit union in the United States. It makes transactions faster, and reduces the chances of error especially if two banks have very similar names. Routing Numbers are also called Bank Routing Numbers, or ABA routing numbers. They are called that because they were created by the American Bankers Association, or ABA.
Is a routing number different from an account number?
Yes, it is! A routing number identifies a bank, while an account number identifies a specific account within the bank.
When do I need to use a routing number?
A routing number is needed when you set up direct deposits, for ACH transfers and to set up online bill payments using direct debit.
Does each bank have a different routing number?
Each bank has at least one routing number. However, larger banks can have multiple routing numbers – in this case, a different routing number is usually used for different regions or branches of the bank.
How can I find my bank’s routing number?
It is normally mentioned on your bank statement, as well as on the bottom left corner of your personal checks.
The ABA routing number is also know as the Routing Transit Number or American Bankers Association Routing Transit Number.
Podcast: What is a Routing Number / ABA Routing Number
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
All you need to know about ABA Routing Number or Bank Routing Number: What is a Routing Number / Bank Routing Number / ABA Routing Number, Is a routing number different from an account number, When do you need to use a routing number, Does each bank have a different routing number, How can you find your bank’s routing number, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/what-is-a-routing-number-aba-routing-number/