What Is a Routing Number

A routing number is a number used to identify a bank or credit union in payment systems. It helps direct electronic transactions to the right financial institution.

It is commonly needed for setup forms and bank-to-bank transfers.

Key takeaway: a routing number identifies the institution, while an account number identifies your specific account within that institution.

When you use a routing number

Routing numbers are often needed for direct deposit, automatic bill payments, wire instructions, or other transfer setups.

That is why they are part of many basic banking forms.

Routing number vs account number

The routing number points to the bank. The account number points to your individual account.

Beginners often confuse the two, but they serve different roles in getting money to the right place.

Why accuracy matters

Entering the wrong routing number can delay or misdirect a transaction. Even routine transfers deserve careful review before details are submitted.

That is especially important when setting up deposits into a checking account or savings account.

Summary

A routing number identifies the financial institution in a transaction. It matters because it helps payments and deposits move to the right bank.