SORT codes are six-digit numbers used in the UK and Ireland to identify bank branches when transferring money domestically. They originated in the late 20th century to verify checks, with the first two digits indicating the issuing institution and remaining numbers specifying the branch. SORT codes and account numbers work together, with account numbers identifying individual accounts and SORT codes facilitating precise fund transfers between accounts.
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A bit of
first!
History
In the late 20th century, when the popularity of
checks was at an all-time high, banks began using
SORT codes.
The system was developed to verify checks drawn
to businesses. SORT codes denoted the account
holder's bank branch, allowing for tracing of funds'
origin and destination in such transactions.
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What is a
SORT code in banking?
A SORT code is a six-digit number used by banks in the UK and Ireland to
identify specific branches or departments when transferring money
within the country.
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Where to find
SORT Code
In the United Kingdom, a SORT code may be found
at the bottom of a check, in a bank's web portal,
on a bank statement, or in other official
correspondences.
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What is the need for a Sort Code?
To receive funds, you will need to share your SORT code and account
number with the source. However, SORT codes are included in
international banking IDs like SWIFT and IBAN, eliminating the
need for SORT codes in most cases when others are specified.
Additionally, the SORT code and account number are essential for
most international bank transfers from UK or Irish banks.
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Working of a
SORT Code
A SORT code is a four-digit number that identifies
transaction data, with the first two digits indicating
the issuing institution and the remaining numbers
specifying the branch.
SORT codes and account numbers work together
but have different roles: account numbers identify
individual accounts, while SORT codes facilitate
precise fund transfers between accounts.
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SORT codes Vs.
International bank account numbers (IBAN)
SORT Codes IBAN
SORT codes identify
UK banks, while SWIFT
codes provide general
account number
information.
Financial institutions may
also require IBANs, which
are up to 34 characters long,
for international wire
transactions.