Routing Number: 062205131 (Please note that this number is no longer in service. Kindly refer to the new Routing Number provided below)
New Routing Number: 062206295
Date of Revision: 080715
Bank: CADENCE BANK, N.A.
Address: 12183 MS HWY 182
City: STARKVILLE
State: MS
Zip: 39759
Phone: (888) 668-1144
Understanding Routing Numbers and Their Significance in Banking Transactions
As we go about our daily lives, engaging in financial transactions and managing our personal finances, we often come across various numbers and codes that may seem confusing or irrelevant. One such number that plays a crucial role in banking transactions is the routing number.
It is a nine-digit code that is assigned to each financial institution in the United States. In this article, we will delve into the significance of routing numbers and how they facilitate seamless banking transactions.
What is a routing number? A routing number, also known as an ABA routing number or transit number, is a unique identification code assigned to financial institutions by the American Bankers Association (ABA).
Its purpose is to facilitate the smooth transfer of funds between different banks and credit unions. Each routing number is specific to a particular financial institution and acts as a vital piece of information that ensures the accurate and secure routing of funds during transactions.
The structure of a routing number
To understand the structure of a routing number, let’s take a closer look at the example: 062205131. In this nine-digit code, the first four digits represent the Federal Reserve Routing Symbol.
These digits indicate the specific Federal Reserve District and corresponding processing center assigned to the financial institution. The next four digits represent the ABA Institution Identifier, which identifies the specific bank or credit union.
Finally, the last digit is an automatic check digit used for verification purposes. Why are routing numbers important?
Routing numbers play a crucial role in a variety of banking transactions, including direct deposits, electronic funds transfers, bill payments, and wire transfers. When you provide a routing number along with your account number, it ensures that the funds are directed to the correct financial institution and the intended recipient.
Without a routing number, the transfer of funds would be significantly delayed or even unsuccessful. Direct deposits: Many employers offer the convenience of direct deposits, where your paycheck is electronically transferred into your bank account.
To facilitate this process, you need to provide your employer with your bank’s routing number and your account number. The routing number ensures that your paycheck reaches your bank and the correct account.
Electronic funds transfers: If you wish to transfer funds from one account to another within the same financial institution or between different financial institutions, the routing number is essential. It ensures that the funds are routed correctly and reach the intended recipient.
Bill payments: Whether you’re paying your utility bills, credit card bills, or mortgage payments online, you need your bank’s routing number. Including the routing number along with your account number ensures that the payment is directed to the correct financial institution and account.
Wire transfers: Wire transfers involve the swift transfer of funds from one bank to another, often across international borders. To execute a wire transfer, you need the recipient’s bank routing number, which helps to identify the receiving bank and route the funds accordingly.
A Brief History of CADENCE BANK, N.A.
Established in 1906, Cadence Bank, N.A., has a rich history deeply rooted in serving its customers and communities. Originally known as The First National Bank of Starkville, the bank started its journey in Starkville, Mississippi.
Over the years, the bank expanded its operations, serving customers across multiple states and becoming a trusted name in community banking. In 2011, the bank underwent a significant rebranding and became Cadence Bank.
This change was accompanied by an enhanced focus on customer-centricity, innovation, and community involvement. The bank’s new identity, represented by the tagline “What a Bank Should Be,” reflected its commitment to provide exceptional banking experiences and build lasting relationships.
Following its rebranding, Cadence Bank continued to grow both organically and through strategic acquisitions. It acquired Superior Bancorp and Birmingham Bloomfield Bancshares, taking another step towards its goal of becoming a leading regional bank.
These acquisitions expanded the bank’s geographical presence and customer base, further strengthening its position in the market. Cadence Bank’s evolution and commitment to its customers are reflected in its dedication to staying ahead of the curve in the ever-changing banking industry.
The bank has consistently invested in technology and innovation to provide its customers with modern banking solutions while maintaining a personalized touch. It offers a comprehensive range of products and services, including online and mobile banking, lending solutions, wealth management, and business banking services.
Moreover, Cadence Bank has remained deeply committed to the communities it serves. The bank actively supports various community initiatives, focusing on education, healthcare, and economic development.
Through its Cadence Cares program, the bank encourages its employees to volunteer and give back to their communities, making a positive impact where it matters the most. In conclusion, routing numbers are essential in facilitating seamless banking transactions by ensuring accurate and secure fund transfers.
Understanding their significance and providing the correct routing number is crucial to avoid delays or complications in financial transactions. Moreover, Cadence Bank, N.A., with its rich history and commitment to customer-centricity and community involvement, continues to be a trusted partner for individuals and businesses in achieving their financial goals.
Topic 3: Key Functions of Routing Numbers
Routing numbers play a vital role in the smooth functioning of banking transactions. Let’s explore some key functions of routing numbers and how they contribute to seamless financial transactions.
1. Identifying the financial institution: The primary function of a routing number is to identify the financial institution where an account is held.
Each routing number is unique to a specific bank or credit union. When you provide a routing number along with your account number, it ensures that the funds are directed to the correct financial institution.
This identification process is crucial to avoid errors and ensure that your transactions are processed accurately and securely. 2.
Facilitating direct deposits: One of the key benefits of routing numbers is their role in facilitating direct deposits. Many employers offer the convenience of depositing paychecks directly into employees’ bank accounts.
To set up direct deposit, you need to provide your employer with your bank’s routing number along with your account number. The routing number ensures that your paycheck reaches your bank and is credited to the correct account without any delays or errors.
3. Enabling electronic funds transfers: Routing numbers also enable seamless electronic funds transfers.
Whether you wish to transfer funds between your own accounts within the same financial institution or transfer money to another individual’s account at a different bank, the routing number plays a crucial role. When initiating the transfer, you need to provide the recipient’s bank routing number to ensure that the funds are routed correctly and reach the intended recipient without any complications.
4. Assisting with bill payments: Routing numbers are essential for making online bill payments.
Whether you’re paying your utility bills, credit card bills, or mortgage payments, you need to provide your bank’s routing number along with your account number. Including the routing number ensures that the payment is directed to the correct financial institution and credited to the appropriate account.
This process helps avoid payment delays or misrouting of funds, ensuring that your bills are paid on time. 5.
Supporting wire transfers: For swift and secure transfers of funds from one bank to another, wire transfers are often used. Wire transfers are particularly useful for international transactions.
To execute a wire transfer, you need the recipient’s bank routing number. This routing number helps to identify the receiving bank and route the funds accurately.
Wire transfers are commonly used for large transactions or urgent payments, and the accuracy of routing numbers is crucial for a successful transfer. 6.
Enabling automated clearing house (ACH) transactions: The routing number is essential in facilitating automated clearing house (ACH) transactions. ACH transactions are electronic payments that move funds between different financial institutions.
These transactions include direct deposits, payroll payments, recurring bill payments, and electronic checks. Routing numbers are used in ACH transactions to accurately route funds between the sender and the recipient’s financial institutions, ensuring efficient and secure processing.
Topic 4: The Role of Routing Numbers in Bank Transactions
Routing numbers play a vital role in every bank transaction, ensuring seamless and secure fund transfers. Let’s explore the various types of bank transactions where routing numbers are integral.
1. Checking and savings account transactions: Whether you’re depositing funds into your checking or savings account or withdrawing money, routing numbers are crucial.
When you deposit funds into your account, the routing number ensures that the funds are credited to the correct financial institution and account. Similarly, when you withdraw money, the routing number ensures that the funds are debited from the correct account and sent to the recipient or dispensed in cash.
2. Direct deposits and automatic payments: Direct deposits and automatic payments rely heavily on routing numbers.
When your employer deposits your paycheck directly into your bank account, the routing number ensures that the funds are directed to your financial institution and credited to your account. Similarly, when you set up automatic payments for bills, loans, or subscriptions, the routing number is essential to ensure that the payments are routed correctly and credited to the appropriate accounts.
3. Online and mobile banking transactions: In an increasingly digital world, online and mobile banking have become the go-to methods for managing personal finances.
Whether you’re transferring funds, paying bills, or viewing your account balances, routing numbers play a crucial role. When you initiate a transfer to another account within the same institution or to an account at a different bank, the routing number is used to route the funds accurately.
Likewise, when you pay bills online, the routing number ensures that the payment is directed to the correct financial institution. 4.
Wire transfers: Wire transfers are commonly used for large transactions or international payments. When you initiate a wire transfer, the routing number of the recipient’s bank is crucial.
The routing number helps to identify the receiving bank and ensures that the funds are routed correctly for a successful transfer. Wire transfers are often used for time-sensitive transactions, such as real estate transactions or business payments, and the accuracy of routing numbers is vital for a seamless process.
5. Merchant and online purchases: When making purchases online or at brick-and-mortar stores using your debit or credit card, the routing number comes into play.
The routing number, along with your account number, is used to verify the funds available in your account or credit limit when authorizing the transaction. This verification process ensures that the transaction can be successfully completed, and the funds can be transferred securely.
In conclusion, routing numbers are integral to various types of bank transactions, ensuring the accurate and secure transfer of funds. Whether it’s for direct deposits, electronic transfers, bill payments, wire transfers, or everyday banking activities, routing numbers ensure the smooth processing of transactions.
By understanding the significance of routing numbers, individuals can navigate the world of banking with confidence, knowing that their transactions will be executed accurately and securely.