What Is a Bank Transit Number?

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A bank transit number is the 10-digit number used by banks for identification purposes. Learn how banks use transit numbers to transfer money and clear checks with other banks using information from a registered financial consultant in this free video on banking.

Part of the Video Series: Money Management & Personal Finance
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Video Transcript

Individuals, when they open up a checking account at a bank should be observant about the different account numbers that are on their checks. And, any bank has the same configurations, there's a series of ten digits at the front of your account, and then there's your account number after that. These ten digits identify the bank, it's called the bank transit number and various banks have different transit numbers, that's how they're chartered in the system and it's important for each bank to be identified as such. It's kind of like a serial number for that bank. If you're doing business between banks, the transit number is always used in this form and fashion, it's also how banks clear checks between each other. They move money using that transit number. When your check written by your bank arrives at my bank, those numbers will interface and as a result the money goes into my account. So, be aware, make sure that you're knowledgeable about your bank transit number. This is financial adviser Patrick Munro.

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