How are Banks useful?? Many times question struck our mind. So the answer is Banks have been a useful source of finance and it has also helped us to retain faith in someone who would keep our cash safe which could come to use when required. There are a lot of things that are needed to process a transaction or even to understand the finance concepts when one needs to put it to full usage.
The reason for why the process of cash would be amicably used based on the procedures that are followed by the bank is a basic safety that each customer would want.
Best rated Banks and Routing numbers
There are many leading banks in the USA and the banks compete with each other to give the best service or facility that is appreciated by their customers. Again, these are the main sectors that make the customers pull towards the banks where the customers would want to have accounts or stick to them in case if the customers already had an account with the bank.
The most spoken banks of the United States are the JP Morgan Chase and the U.S. Bank. The U.S. Bank is regarded to be the seventh largest bank in America. It is also ranked fifth when it comes to the ‘deposits’. It has 3151 offices and the number of ATMs counts to 5001.
Apart from all the facilities offered to the customers, the routing numbers form one of those vital aspects of banking that would assist both the customer and bank to get the procedures intact before initiating the transactions, especially the online transactions.
When we look at the finance source found in the USA, the banks that are available in the current scenario implements the fact that the account numbers have an important role and so does the routing numbers.
Facilities provided by the Banks
Managing the wealth and banking on the business fields that help the customers to interpret and take financial decisions is one of the guidance provided by the banks.
Again, the banks also help its customers through customer support which are at the customer’s help when required. The banks in the US have customers in large number and hence, globalization of the banks seems to be necessary. This leads to the necessity of the transactions to be made online. Accordingly, the routing numbers come into place.
The ‘routing numbers’ are found in the banks mentioned above and also the subsidiary who operate under them. In order to safeguard the customers’ belief in the bank in which they deposit and do transactions online, routing number becomes a most important aspect to be looked into.
What is a Routing Number?
There are many questions that arise in one’s mind about his concept of routing number that comes as a vital part for transactions done through banks.
Simpler than ever! One can open an account from anywhere around the world through online banking.
The ‘Routing Number’ is a nine-digit number that is used by the banks in the United States for banking transactions. The ‘Routing Number’ can be found on the cheque and this is one that will help to identify the financial institution on which it is drawn.
The American Bankers Association (ABA) developed this in the year 1910. The process of using the routing numbers is followed within the United States for payment transactions, which means, any of the banks that are located out of United States do not have to follow this procedure.
Where are Routing numbers used?
The routing numbers are used on the paper cheque, for wire transfers, and also for the ACH transactions. The routing numbers would help in making the transfer quicker and also favourably easy due to the reason that the routing numbers are region-specific. It means that each region in the United States would have a unique ‘Routing Number’ that helps to segregate the bank’s region where the transfer has to be made.
Also, the nine-digit number (routing number) is used for online transactions so as to confirm the area of transit and do the transfer with much ease and effectiveness.
About ABA Number
The ABA number appears in two forms, one is the fraction form or the standard cheque and another would be the MICR form. The MICR form is the one that is printed in magnetic ink and is found at the bottom on the left of the cheque. If the person is transacting online and wants to know about the area’s bank routing number, it can be found on the top of the cheque. However, in order to confirm these details, the customer support of the bank is always there to assist them.
So, this is why the account friendly banks have huge customers and various branches to cater to the needs of the customers when required.
Use of Routing Numbers
Routing numbers are helpful not only for the customers who are transferring the amount but also for those who receive those transfers.
In other words, it would have been more complicated if the Routing Numbers did not come into existence. ABA has done a brilliant job by introducing one such number that comes to the rescue, for online transactions, given the fact of not having the hassle of carrying the cash.