Lesson: Banks Use Multiple Routing Numbers
Photo by mrbill
Here is a tip that I was just reminded of the hard way: don’t make assumptions about check routing numbers, as the routing numbers for many banks vary by region.
I recently opened a new checking account with Chase online; the account was setup instantly, with the actual written materials to follow shortly. For reasons that we don’t need to go in to, I set up the account with more initial money than I intend to keep in that account, and so I quickly moved to link the account with my other banks so that I could transfer money around electronically.
In order to link accounts — for anything ranging from online transfers to payroll direct deposit — you need to provide the checking account number and the routing number for the bank. The routing number is a nine digit number assigned to the bank that is used to route transfers, and is located in the bottom left of the checks printed by your bank.
Here’s where I made my mistake — I assumed the routing number on my new checking account would be the same as the other two Chase checking accounts I have. I didn’t know this for sure, as the routing number was not included in the information I was provided online, but it seemed like a reasonable assumption.
Wrong. Within two days, Paypal and Citibank had rejected my attempt to link the accounts online to my new Chase account, telling me the account information was wrong. It didn’t take me long to figure out the mistake was the routing number.
The reason for the different routing numbes? I had opened the other checking accounts in a different state than this one, and, at least with Chase, the routing number is based on the region that corresponds to where the account was opened. See this lovely table of Chase routing numbers.
The worst part is that I attempted to make an online credit card payment using the wrong routing number, which was then rejected by Chase, causing me a whole lot of headache with my credit card company over the rejected payment — but I’ll save that story for next time.
I don’t pretend to understand why the system works this way, but it sure is frustrating. One of the benefits of a national bank like Bank of America or Chase is that they are “national” — I can deposit my money anywhere in the country, make transactions, etc. The fact that the routing number varies by the region the account was opened seems like an archaic holdover.
On their question and answer page on routing numbers, Bank of America’s answer to “What state should I select if I opened up my account online or by mail?” advises customers to contact customer service. That in itself makes this all seem like a silly and complicated system.
Presumably there are not two accounts with the same number in the system, so in this day of electronic banking, why could Chase not accept the transactions using any one of their routing numbers? Can anyone enlighten me more?
Anyway, word to the wise — don’t make assumptions about the routing number?
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