After the creation of the Federal Reserve, the routing number began to include the Federal Reserve Routing Number. Today, this set of digits is widely used by banks to transfer money to and from checking accounts.
routing number
As previously mentioned, routing numbers are a series of nine digits. Below is a brief explanation of what each digit signifies.
First four digits. These numbers were assigned by the Federal Reserve gambling database Routing System. It represents the bank’s geographic location. Due to mergers and acquisitions, they mostly do not correlate with the physical location anymore.
Fifth and sixth digits. These numbers designate which Federal Reserve bank the institution’s electronic and wire transfer route through.
Seventh digit. This number tells you the Federal Reserve check processing center that was initially assigned to the bank.
Eighth digit. This digit designates the Federal Reserve district in which the bank is part.
Ninth digit. This number provides a checksum. It is a complicated mathematical expression using the first eight digits. If the result does not equal the checksum number, the transaction will be flagged and will become manual processing.