IBAN stands for International Bank Account Number and they are called for when sending or receiving international payments. An IBAN is used to identify the individual account involved in an international transaction. This globally-established coding system is primarily practised by banks within Europe, but it is becoming more widely used by countries outside the EU.
The sequence of alphanumerical characters that make up an IBAN number is as follows:
An example of an IBAN is: GB25HLX11073611219664
The prize for the longest IBAN is awarded to Malta; their IBAN numbers are comprised of 31 characters. Conversely, the shortest IBAN numbers are found in Norway; where they are just 15 characters long. Do you know how long your IBAN number is?
Your IBAN number can be found on bank statements or in your online/mobile banking account. Alternatively, you can search for the IBAN on your bank’s website and by calling or visiting your branch.
If for any reason you are struggling to find your IBAN number, there are several IBAN calculators available online for those who need a helping hand.
Simply enter your home country, bank account number and sort code, and the calculator will generate your IBAN. The same goes for those who want to verify their IBAN number before submitting an international money transfer. It is always better to be safe than sorry when it comes to moving your hard-earned money.
As the name suggests, an International Bank Account Number is used for sending and receiving interbank transfers. They may also be called for during other international payment procedures such as setting up a wire transfer.
As two very similar sounding financial terms, you would be correct for assuming these banking terms are interlinked.
Once you have found your IBAN number, it is easy to identify your account number: the last 8 digits of your IBAN is your bank’s account number.
It is easy to get confused by these two terms as they are both internationally recognised methods of identifying money transfers.
The main difference between the two is that a SWIFT code refers to the corresponding bank code, whereas an IBAN number identifies a specific account.
It is important to understand the different roles they both play in the processing of international money transfers.
April is a journalist and full-time content writer for MoneyTransfers.com. Over the last decade she has written for a number of different online and print publications. Having lived overseas in Canada and Vietnam, April hopes to see more of the world as soon as possible, with Japan at the top of her travel list. As a former expat, April has first-hand experience of managing finances from overseas. She enjoys writing about forex trends and the future of banking.