Difference between an ABA number and a routing number
ABA number Vs routing number:
Sorting through and classifying the bundles of checks and documents which are drawn from various financial institutes can be quite tiresome for large scale banks which conduct operations in a grand scale. Therefore, the American Banker’s Association has identified a way in which it bestows specific number by which these things can be identified in.
What is an ABA number?
The ABA number , also refered to as the ABA routing number, is a unique number which the American Bankers’ Association has introduced as a solution to identify a specific federal or state chartered bank or savings institution. In order to achieve this number an institution should posses the eligibility to hold an account at a Federal Reserve bank. It is printed on a negotiable instrument such as a check which will determine which bank or financial institution will be responsible for that particular financial document.
What is a routing number?
A routing number, also known as the RTN, is a nine digit numeric code used in the US in order to identify a banking or a financial institution which will clear fund or process checks. This number indicates the particular institution from which the funds must be drawn from.
The first four digits will indicate the Federal Reserve Bank of the district where the institution is located while the next four indicates the actual bank or the institution. The final number stands as the classifier for the check.
What is the difference between a routing number and an ABA number?
Whereas the ABA number is found at the upper right hand corner of a check which identifies the Federal Reserve Bank that is providing its services to that particular financial institution, the routing number or the RTN is found at the bottom part of the check .
While the ABA number and the RTN number are both divided in to three parts, the terms signifying these pats are different. An ABA number indicates the geographic location of the financial institution, the particular financial institution and also, the Federal Reserve Bank servicing previous item, the RTN number indicates the district where the institution is located, the actual bank or the institution which is the same as in the ABA number and the classifier of the check as well.