This nine-digit code identifies the financial institution where an account is held, facilitating electronic transactions like direct deposits, wire transfers, and automatic bill payments. For example, it ensures that a paycheck sent electronically reaches the correct account at the specified credit union.
Accurate use of this code is crucial for seamless financial operations. It prevents delays, returned payments, and potential fees. Historically, these codes stemmed from the need to streamline interbank transactions, evolving alongside the rise of electronic banking. Having the correct code ensures funds are routed efficiently and securely.