Money transfers have become easier thanks to online solutions offered by most financial institutions. A common way to transfer money is from bank to bank and this involves the use of a routing and account number.
Many people have stopped using other ways to transfer money or make payments in this era of plastic cards that can be used to access your money.
Although you might transfer money between accounts using your online banking app, you probably don't know much about the accounts themselves beyond the names you've given them.
It happens all too often to realize that you do not know your bank account number or the routing number of your financial institution.
This may present a challenge if you want to set up direct deposit or make a payment from your bank account to another bank account.
A routing number, is made of nine digits, is used to identify the bank to which your account belongs. It is distinctive and is only assigned once. Each group of numbers on a check has a specific purpose, and this set of numbers is the first one at the bottom. A routing number also enables banks to trace the origin and transfer of funds.
An account number, on the other hand, is unique to your account and aids in distinguishing your account information from that of every other account in a banking institution.
Transferring money using routing number and account number is simple and straightforward, but goes with some fees. However, there are some other less expensive ways to transfer money online which we'll mention.
That said, this article focuses on showing you how to transfer money using routing number and account number.
Table of Contents
What is a Routing Number?
A routing number, also called an ABA routing number or an RTN (routing transit number), is a nine-digit number that indicates the location of the opening of a person's bank account.
The routing number is necessary when sending money internationally, whether it is going to friends directly or moving money between banks.
At the bottom of checks, to the left of the account number, are the routing numbers. The account page for online banking is where you can find the routing numbers.
Because routing numbers are not as private as account numbers, the majority of banks post them online.
What is an Account Number?
An account number is a unique string of numbers, letters, and other characters that identify a specific financial account.
Account numbers are a standard part of almost all financial transactions. Routing and credit card numbers are a couple of examples of account numbers.
How to Get Your Routing and Account Number
An account number is given to you automatically when you open a bank account. The account number makes it easier to correctly identify particular customers in a bank account. Nobody else owns an entity that is comparable to someone else's.
You can use your branch's routing number for your transactions. Keep in mind that each bank has its own routing number. A banking institution can be identified from others by its routing number.
Your checkbook has the routing and account numbers that you need. Any institution's checking account holders are always free to ask for a checkbook once they have one open. Instead of using cash or an electronic transfer, you can use checks to pay people and businesses.
At the bottom of that cheque are printed the routing and account numbers. The routing number is the first set of numbers from your left, and the account number is the second set of numbers. The check number is in the third set.
Your online banking or banking app can also provide you with your routing and account numbers. Since these numbers are always listed under your profile, checking them is simple. These numbers will be very important if you want to transfer money from your bank account to someone else's credit card or debit card.
Finally, calling your bank and providing the appropriate information is another approach to obtain the information. If you are unsure, you can simply walk to your branch and ask them.
How to Use Routing and Account Numbers
A routing number comes handy when wanting to transfer money to another bank account that isn't registered by your bank.
When sending money to an account at another bank, you'll be required to provide the recipient's routing and account numbers, followed by the amount and other details, before pressing the send button.
For instance, you'll need the debit card's account and routing numbers if you wish to move money from a credit card to it.
The recipient merely needs to give you the routing and account numbers of the account linked to the debit card, and money will automatically appear on the debit card. Debit cards are linked to checking and occasionally savings accounts.
You can send money using an account and routing number in two different methods; — ACH transfer and Wire transfer.
1. ACH Transfer
ACH stands for Automated Clearing House. This transfer method can be used to transfer money from one bank to another.
Before being released to the relevant bank account, the monies are processed through the clearinghouse for a number of purposes.
You should be prepared to wait up to three days after sending an ACH transfer for the money to appear in the recipient's accounts. If there are numerous technicalities, it can even take longer.
Due to the numerous checks made to make sure the money is coming from a reliable source and the recipient account has a clean record, the process takes a while.
Online and physical branch locations both accept ACH transfers. International or domestic transfers are both possible.
2. Wire Transfer
While the institutions themselves handle the payments, wire transfers are nearly identical to ACH transfers. We saw that a clearinghouse is used for ACH transfers.
For domestic transfers, monies are electronically contacted and arrive at the intended account within 24 hours. International transfers may take longer.
For your knowledge, wire transfers are advantageous for moving sizable sums of cash. However, because the transfers happen quickly, you should be sure that all the information you enter is accurate.
Compared to ACH transfers, reversing a wire transfer might be difficult. For instance, it can be difficult to reverse the cash if you used a wire transfer to move money from a credit card to a bank account.
How to Transfer Money Using Routing Number and Account Number
You can transfer money from one account to another using your routing and account numbers. You can use wire transfers or ACH transfers to send money electronically using an account and routing number.
The following is the procedure for transferring money using routing and account numbers.
- Log in to your account online.
- Go to the section on money transfers.
- Fill up the recipient's information, including account and routing numbers.
- Enter the amount you'd like to send.
- Press the "Send" button.
- Review the transfer information.
- Authorize the transaction using your PIN, Touch ID, or any other way that is most suitable for you.
The money should arrive the following business day if you utilize wire transfers, and a few days later if you use ACH transfer.
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Other Ways to Transfer Money Using Routing Number and Account Number
Other ways to transfer money using routing number and account number include;
- Mobile wallets (PayPal, Venmo, Cash App, Zelle).
- Money order.
- Direct deposit.
Do Credit Unions Have Routing and Account Numbers?
Credit unions have routing numbers and account numbers. Routing and account numbers are provided by every financial institution to make money transfers easier. Account numbers are present in even mobile wallets like Cash App, Venmo, Payoneer, and others.
It is the same to transfer money to a credit union account as it is to a bank account.
Can I Send Money Without Routing and Account Numbers?
Yes, you can transfer money from your account to another person's bank or credit union account with Zelle, an online money transfer service that allows you to transfer money between banks.
The majority of American banks accept Zelle. Your phone number or email is all that is required to create a Zelle account.
You can send money to someone using their phone number if they are also a Zelle user. The money will appear in their bank account right away. Furthermore, although the recipient bank may charge you fees, sending money through Zelle is free.
Zelle supports most US banks and credit unions. Debit cards are also supported by Zelle. Through Zelle, you can instantly transfer money from one bank account to another or to a credit union.
However, you cannot instantaneously transfer funds from a credit card to a bank account. This is due to the fact that Zelle does not accept credit cards. A credit card cannot be used to rapidly transfer funds to a bank account.
However, you can use an ATM to withdraw money and then deposit it into a bank account located only at that particular institution.
The money will appear right away. However, the strategy attracts substantial fees since you will be using a cash advance.
Can I Change my Account and Routing Numbers?
It is possible to change a routing number from one branch to another. It may be necessary to modify the information if you were employed in one state and were forced to relocate to another in order to continue using the bank's services in your new location.
You make your way to a branch in the new location and ask them to transfer your information there. You will eventually obtain a new routing number—the routing number of the branch in the new location—even if it can take a few days.
Your account number might not be able to be changed, though. Opening a new account and transferring money from the previous one is the best way to receive a new account number.
Do I Need the Account and Routing Numbers for a Balance Transfer?
Moving debts from one credit card to another with better terms and conditions is known as a balance transfer. This credit card may have larger limits and cheap interest rates.
You must apply for a balance transfer credit card in order to transfer balances from one credit card to another.
If accepted, you then provide the new card issuer with the information from the former card and they will pay off the debt on your behalf and transfer it to the new card.
After the debt is transferred, you pay it back with a lower interest rate than the prior card's for a set amount of time or at no interest.
Returning to our question now In fact, the balance transfer credit card issuer needs the routing and account numbers to repay the loan with the other card.
Can Someone Withdraw Money with my Account and Routing Numbers?
In some cases, people who divulge their account and routing numbers end up losing money. Yes, using the two sets of numbers can result in financial loss.
Wondering how? This happens when con artists already have your address. Your bank can issue checks that they can use to pay for goods and services. So they can still steal your money even if they don't know your PIN or account password.
Moreover, there are many ways to withdraw money from ATM without PIN. Some of these practices can be employed by fraudsters to gain access to your funds.
When fraudsters have your ID and contact information, they can also steal from you by going to your bank, signing the withdrawal slip, and then taking money out of your account. You should keep the information private and only share them with those you trust.
An account and routing number are important details when making a bank to bank transfer. Most credit unions also have routing numbers making it easier for their customers to move funds from one account to the next.
The account number distinguishes a bank account from others meanwhile, the routing number distinguishes a bank branch from others.
Transferring money using routing number and account number shouldn't be a problem if you follow the steps outlined in this article.