This 9-digit code is used for multiple purposes such as fund transfers, direct deposits, bill payments, and digital checks. When one uses these modes of electronic transactions, then the Interbank will prompt you the Interbank routing number. A routing number is also required while filing taxes and receiving rebates.
A bank can have more than one Interbank routing number. So does Interbank. Bank mergers and location may result in multiple codes. Before making any electronic transaction, it is always advisable to confirm with Interbank which number you must use. If your bank account Interbank routing number is changed, Interbank will send you notifications prior, so that you stay informed and be watchful.
What Is The Difference Between SWIFT Codes And Routing Numbers?
One may be confused, as both SWIFT codes and routing numbers are used for financial transactions. The SWIFT codes and Interbank Routing number of Interbank are used for distinctive purposes. Let’s give you a clear explanation below:
SWIFT codes- These are the codes used during international money transfers only. SWIFT codes are 8 to 11 digit alphanumeric codes that define the important details about the bank, branch, country, and account. SWIFT code is also used by financial institutions in exchanging messages with each other thus it is also known as the largest financial messaging system in the world.
Whereas Interbank routing number is used for electronic fund transfers that happen in the domestic domain. The Interbank routing number is the US is also known as the ABA RTN (American Banking Association routing transit number) and in Canada as Bank Code. ABA RTN is managed by the American Bankers Association and Accuity. The Interbank routing numbers in Canada are controlled and managed by Payments Canada.
The biggest distinction between SWIFT code and routing number is the area of usage. If the payment stays domestic, then the Interbank routing number would suffice. But if the payment crosses borders, then the SWIFT code will serve the purpose.
Performing international transactions
At times when one may require to conduct international money transfers. There are a lot of factors that one needs to abide by while performing international wire transfers. You must watch out for the exchange rate. A lot of money can be lost if a bad exchange rate is employed. Look out for good third-party money transfer services that can help you with cheaper exchange rates. The Interbank officials will help you in guiding the best way to transfer money across the borders effortlessly.