What Is a Routing Transit Number?

When it comes to matters of banking, there are some essentials to know, which includes your routing transit number. Your routing transit number is a series of nine numbers that identifies the bank from which the money is drawn. Examining your checks is a great way to familiarize yourself with your routing transit number and what it does.

The Basics

If you take a look at the lower left hand corner of your check, there should be a line of number separated by symbols, which are similar to slashes and colons. These symbols help divide this series of numbers into more manageable parts which indicate different parcels of important information. The first nine numbers in this series is the routing transit number. Not only does it identify your bank but this is also the center that processes the funds themselves. The next number, excluding the symbols of course, is your account number. This number can be a different length depending on the bank but may be up to 13 digits. Lastly, the four-digit number at the end of this series and following the account number is the check number. This simply lets one know where they are in their ordering sequence. Check numbers helps the bank verify that it is indeed a check issued in your name. Ideally, it is recommended that you write checks in sequence to prevent any mix-ups and lost checks. Even if you have all your accounts under one roof, different routing transit numbers are assigned to checking and savings accounts, money market accounts, retirement accounts, lines of credit, and wire transfers.

Different Formats

The routing transit number is issued in two different formats. While they serve the same function they differ slightly. The Magnetic Ink Character Recognition form, also known as the MICR, is machine-readable due to the special quality of the ink the number is printed in. A more outdated version is the Fraction form of the routing transit number. While not in common use like the magnetic ink, it can serve as valuable backup should the check's MICR routing number not be readable or torn. The fraction form is traditionally seen in the upper right of the check and is usually located near the date.

Routing Transit Number Management

Routing transit numbers are only used in the United States to identify financial institutions located within the country. Banks, credit unions, Federal Reserve Banks, and the Automated Clearing House all use routing transit numbers as a way to easily and automatically identify from which branch or bank the money is drawn from when cashing direct deposits. Every institution that routinely processes finances is issued a routing transit number by which they are identified in the transaction. Originally designated in 1910 by the American Bankers Association, routing transit numbers are assigned through specialized registrars. Currently the company in charge of task is Accuity, who manages the list of some 28,000 active routing transit numbers and has the power to assign new numbers.