A “routing number”, also known as an ABA number, is a 9-digit code that identifies a specific financial institution within the United States. Each bank is assigned a unique routing number, like a zip code for money transfers. For instance, TD Bank’s routing number for New Jersey is 021201026.
This routing number is crucial for processing electronic payments, such as wire transfers, direct deposits, and online bill payments. It ensures that funds are directed to the correct bank and account. Routing numbers have been in use since the 1910s, undergoing standardization in the 1960s to enhance the efficiency of the banking system.
