A routing number, also known as a routing transit number (RTN), is a nine-digit code that identifies a specific financial institution in the United States. It is used to direct electronic funds transfers (EFTs) between banks and credit unions. For example, the routing number for BMO Harris Bank is 071000022.
Routing numbers are crucial for ensuring that funds are transferred to the correct account. They also facilitate interbank communication and enable various financial transactions, such as wire transfers, direct deposits, and automated clearing house (ACH) payments. Historically, routing numbers were introduced by the American Bankers Association (ABA) in the 1910s to standardize the EFT process.
