Unlike American banks that use routing numbers, Canadian banks use transit numbers to make it easy for the users to identify the bank details. It consists of five digits and is used by every bank and financial institution in Canada.
The purpose of this transit number is to identify the bank name, branch and all the detail of that specific bank account. There are two main portions of an account information number in Canada:
- Transit number: The first five digits of the number are called the transit number which represents the details about the branch.
- Institution number: The next three numbers are known as the institution number which shows the bank details.
- Account number: The last seven digits are the unique account number.
When you open an account in Canada, you’re automatically assigned all of these numbers.
Purpose of the Transit Number
The transit number is used to identify the home branch of the account. This means it shows the details about the branch of the bank where the bank account was first opened and is still used. Transit number is used by the bank to easily find the branch where the account is opened.
This number makes it easy for the banks and the users to manage their account information and transfer the details of the bank quickly. For instance, if a user wants to send their account number to someone for a specific transaction, it makes it easier for the bank to identify the location of the account.
The users also pass on their account details in just a form of a number. Therefore, it can be said that the purpose of transit numbers is to conduct transactions, like transferring funds from one bank account to another.
This helps ensure that the money has been transferred to the correct location. All the parts of the routing number including the transit number have the same purpose of properly locating the bank accounts of the customers.
Whenever a company or a person wants to conduct a transaction, whether send or receive the money, it is compulsory to provide the transit number along with the bank account number. The transit number in Canadian bank accounts is helpful for international transactions as well.
Global money transfers also require this number to accurately locate the Canadian account. The transit number is important for companies and individuals to carry out the transactions both domestically and internationally.
The transit number can be used to take out all the details about the branch of the specific bank. You can check the address and working hours of the bank from the branch number called the transit number.
Where Can the Transit Number of a Bank be Found?
The five-digit transit number in Canada can be found through several methods. It is written on the bottom of the chequebook along with the institution number and the account number. The user can identify those five digits from the cheque.
The transit number can also be found in online banking apps and bank statements. Simply click on your account info/details to get your bank transit number.
The transit number in Canada is a part of all the financial institutions to help the businesses and individuals locate their branch numbers and addresses.