An ABA number, also known as a bank routing number, is a nine-digit code that identifies banks in the United States. It was developed by the American Bankers Association in 1910 to identify the specific financial institution responsible for the payment of a negotiable instrument. The ABA routing number has evolved over the years to designate participants in automated clearinghouses, electronic funds transfer, and online banking. Every bank in the country has its own ABA routing number, which identifies the banks location when processing payments. The first four digits of any ABA number were originally designed to represent a banks geographical location, assigned by the Federal Reserve Routing System. However, as banks have moved around over the years due to acquisitions and mergers, these numbers dont always correlate with its current location. The remaining digits are used to identify the specific bank and its location.
An ABA number can be issued only to a federal or state-chartered financial institution that has been determined to be eligible for a master account by a Federal Reserve Bank. The assignment of a routing number does not expand or change in any way the powers of the financial institution as specified in its charter. Once in receipt of the assigned routing number, the financial institution must actually be granted the master account at one of the twelve Federal Reserve Banks to have direct access to the Federal Reserves payment systems and to settle transactions with other participants in the central banking system.
You can find the ABA routing number at the bottom of your checks. The ABA routing number is the left-most number, followed by your account number, and then by the number of the check. If you dont use paper checks, you can also log into your online bank account to find the ABA number. Perform a quick search for Automated Clearing House (ACH), and it should pop up there or under your banks direct deposit forms.
