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Updated August 5, 2020

What is a Routing Number?

A routing number is a exclusive identification number assigned to banking institutions by the American Bankers Association (ABA).

How Does a Routing Number Work?

For those banks and banking institutions that qualify as account holders with the Federal Reserve, the ABA assigns a routing number for identification. A bank's routing number contains nine numbers and is always found near the bottom left corner of its checks. The routing number tells the Federal Reserve bank which commercial bank the associated funds will be withdrawn from.

The routing number is followed by the individual account number and the number of the check itself. For example, the bottom of check could read "623852453   1234567   001." The first nine digits are the routing number, the second seven digits are the account number, and the last three digits are the check number.

Why Does a Routing Number Matter?

Also known as an ABA transit number, a bank's routing number facilitates the clearing of checks and transfer of funds between banks.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Routing Number, then please ask Paul.

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