ABA Transit Number

DEFINITION of 'ABA Transit Number'

A unique number assigned by the American Bankers Association (ABA) that identifies a specific federal or state chartered bank or savings institution. In order to qualify for an ABA transit number, the financial institution must be eligible to hold an account at a Federal Reserve bank. ABA transit numbers are also known as ABA routing numbers, and are used to identify which bank will facilitate the payment of the check.

BREAKING DOWN 'ABA Transit Number'

The ABA Transit number was originally developed in 1910 to indicate check processing endpoints. Since then, the number's use has increased to include participants in check clearing between banking institutions, automated clearing houses and online banking activities.

The ABA check routing number is usually the first nine digits in the bottom row of numbers on any check. For example, if the bottom row showed 123456789 0100100120: 0123, the ABA routing number would be 123456789.

RELATED TERMS
  1. American Bankers Association - ...

    The American Bankers Association (ABA) is the largest banking ...
  2. ABA Bank Index

    A banking index that is made up of community banks and banking ...
  3. American Institute Of Banking - ...

    Founded in 1907, the American Institute of Banking (AIB) is a ...
  4. Australian Bankers Association ...

    An association of banks that work on behalf of its member financial ...
  5. Bank Marketing Association - BMA

    The publishing arm of the American Bankers Association, a trade ...
  6. Routing Transit Number - RTN

    A nine-digit numerical code used to identify a banking or other ...
Related Articles
  1. ETFs & Mutual Funds

    Breaking Down the First Trust NASDAQ ABA Community Bank ETF (QABA)

    Get an analysis of the First Trust NASDAQ ABA Community Bank ETF, the single best pure-play ETF for investors seeking exposure to small-cap bank stocks.
  2. Personal Finance

    Bank Lingo: Routing Number Vs. Account Number

    Each consumer bank account has its own personal ID. And so does the bank. How do these numbers function and how do they protect the account holder?
  3. Investing

    Banking: Check-Writing 101

    By Amy FontinelleThe ability to write checks from your checking account allows you to pay bills or send money to relatives more securely than using cash and less expensively than using a cashier's ...
  4. Markets

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  5. Investing

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  6. Markets

    Regional Banks Give The Fed A National Perspective

    We all know that the Federal Reserve utilizes monetary policy to control the economy, but what do the 12 regional Federal Reserve Banks do?
  7. Markets

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  8. Financial Advisor

    Bank Teller: Career Path & Qualifications

    Learn more about what it takes to become a bank teller and whether the position qualifies you for promotion into higher bank positions.
  9. Personal Finance

    2015's Top Checking Account Promotions

    Open a checking account in 2015 and the bank could give you a cash bonus. Check out these top offers.
  10. Markets

    A Brief History of U.S. Banking Regulation

    From the establishment of the First Bank of the United States to Dodd-Frank, American banking regulation has followed the path of a swinging pendulum.
RELATED FAQS
  1. What is a CUSIP number?

    CUSIP stands for Committee on Uniform Securities Identification Procedures. Formed in 1962, this committee developed a system ... Read Answer >>
  2. Do mutual funds have CUSIP numbers?

    Learn what CUSIP numbers are and how they are used to classify securities, such as mutual funds, registered in the U.S. and ... Read Answer >>
  3. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
  4. What are the differences between preference shares and bonds?

    Learn what information banks keep on file for their customers, and understand how this information can be used to deny an ... Read Answer >>
  5. What do banks do to control the bank reserve?

    Understand what the Federal Reserve does in order to expand or contract the economy. Learn what depository institutions can ... Read Answer >>
  6. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
Hot Definitions
  1. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  2. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  3. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  4. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  5. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
  6. Real Rate Of Return

    The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other ...
Trading Center