Bank Routing Numbers
Checks serve a special role in a fast-paced and risky world we live today. We can’t always carry cash along with us given the uncertain figures lurking outside that may put our lives to risk and given the fact that it hinders our need for efficient mobility where we need to carry things more lightly. This is where checks help us. It serves as a purse to our bank accounts allowing us to pay big amount of money to a purchase or to any kinds of transactions with just a quick flip to the bank paper check and whip of the pen. Aside from the amount of money to be place on the check, one must also take note of the numbers printed at the bottom of your check called bank routing numbers.
What Is A Bank Routing Number?
It is the nine-digit code number found across the bottom of the check. The number is distinctively printed on a special font using a magnetic ink character recognition technology. Bank routing numbers are also called the routing transit number (RTN) or more popularly the ABA or American Bankers Association number. The association designed the system in 1910. The number is very essential in the banking system of the United States.
A bank routing number serves to identify the financial institution or the particular bank on where the money stated on the check should be withdrawn. The Automated Clearing House also uses the code or the numbers to process direct deposits and other automated transfers.
Bank routing numbers are officially registered at Accuity, which is a subsidiary of SourceMedia Company. According to Wikipedia, SourceMedia is a mid-sized business-to-business publishing company. Accuity, therefore, produces a semi-annual publication of the association called the American Bankers Association Key to Routing Numbers where an updated ABA Number Directory can be found. About 24,000 bank routing numbers are actively being used today.
Format
Obviously, each digit of bank routing numbers stands for something that serves a particular purpose for bankers. The code follows a format like this XXXXYYYYC, where XXXX serves as Federal Reserve Routing Symbol, YYYY as the ABA Institution Identifier, and C is the check digit.
The first two digits of bank routing numbers or where the Federal Reserve Routing Symbol can be identified normally ranges from 00 through 12, 21 through 32, and 61 through 72 or 80. The digits serve as a guide in locating the Federal Reserve district of the paying bank, the Federal Reserve facility through which the check is collected, and the funds availability status assigned by the Federal Reserve.
So 00 is used by the United States Government. Numbers 01 to 12 are the normal routing numbers assigned to Federal Reserve Banks respectively in Boston (01), New York (02), Philadelphia (03), Cleveland (04), Richmond (05), Atlanta (06), Chicago (07), St. Louis (08), Minneapolis (09), Kansas City (10), Dallas (11), and San Franciso (12).
Moreover, numbers 21 through 32 were assigned to thrift institutions such as savings banks and credit unions, 61 through 72 are used for electronic transactions, and 80 for traveler’s checks.
The last digit of the Federal Reserve Routing Symbol or the first four digit of the bank routing numbers stands for the availability of the check. If it ends with 0, the check is payable the same day it was presented to the bank for encashing. But if it ends from 1 to 9, the check is paid in two business days or more.
In this part, bank routing numbers will serve a purpose for you as an issuer of the check. If you don’t want to get embarrassed making the person you’ve given the check leave the bank empty handed with cash, then check out that digit. Same as those given with the check, at least you can set the right schedule when to encash the check that you will get the needed money.
So before issuing a check or going to the bank, take a good look at bank routing numbers.