In the UK, an IBAN (International Bank Account Number) is a standardized international code designed to identify bank accounts across national borders in a way that minimizes the risk of transcription errors.
It facilitates the processing of cross-border payments with improved accuracy and efficiency.
The IBAN system is used by banks in the European Union and other countries around the world, but it’s not used universally in every country.
A UK IBAN consists of up to 34 alphanumeric characters, which include:
- Country Code: Two letters representing the country in which the account is held (for the UK, this is “GB”).
- Check Digits: Two numbers used to perform error checks and verify the integrity of the account number.
- Bank Identifier: Four letters representing the bank’s code.
- Sort Code: Six numbers identifying the bank branch where the account is held.
- Account Number: Eight numbers representing the individual’s account number.
For example, a UK IBAN might look like this: GB29 NWBK 6016 1331 9268 19, where “GB” is the country code for the United Kingdom, “29” is the check digits, “NWBK” is the bank identifier for the National Westminster Bank, “601613” is the sort code, and “31926819” is the account number.
The IBAN is used for making or receiving international payments, ensuring that transactions are directed to the correct bank and account with greater accuracy.
It’s important to use the correct IBAN when sending money abroad to avoid delays, extra charges, or the payment being returned.
In the UK, individuals and businesses can typically find their IBAN on their bank statements or by logging into their online banking platform.