Current accounts are financial products that allow customers to make more practical use of their money, through a series of instruments that can be managed according to their convenience. Of course, all current accounts are identified in order to establish who they belong to and other data.
In Argentina, checking accounts number (and all accounts in general) are identified with numbers that allow entities and authorities to identify them according to their coding. As you can see in the account numbers there are a series of them that are grouped and separated by spaces or hyphens. Absolutely all accounts are identified with a group of 22-digit numbers.
This account number is also known as the CBU (Uniform Bank Key) and its structure responds to an order and sequence according to what is established by the authorities in the matter. The CBU is also known as the Unique Bank Key or Unified Bank Key.
Structure of the Checking Account Number
If you are one of the people who has wondered about the meaning of the numbers that make up the CBU, you will already face your question, since below is a breakdown of the structure of the CBU which, as we already know, is made up of nothing more or less than 22 digits.
The CBU itself initially groups:
- 3 digits (group 1), which correspond to the identification of the Banking entity
- another 4 digits (group 2) were used to identify the branch where the account is opened
- then follows 1 digit that has the function of giving security to the account number, since it is called “verifier digit”
Finally, the CBU contemplates 13 more digits (group 3), which are the account number itself, and lastly, it has a number that is again a “check digit”.
Each bank entity has a code of 3 numbers that identify it, so when you see them in a CBU you can know which bank it corresponds to, for its part, each branch of each bank has a number that identifies it, and thus you can establish the place of opening of the account. The “check digit” is a number from the first 7. The account number, for its part, is established by each entity and, like the first check digit, the second is a digit from the 13 that make up the account number.
It should be noted that there is a mathematical method that allows verifying bank accounts, in fact, it is called the “Validation Algorithm”, which allows, through calculation, to define the veracity of the CBU number. In the same way, for those who are not so good at calculations, there are pages that validate the account number just by entering it into the portal, which quickly and assertively does the calculation and returns the result shortly.
The current account is one of the most traditional financial products, even so, it raises a lot of doubts because its characteristics are different from those of other transactional products.
Learn more be more, wants to share with you relevant information about said financial product, with the purpose of dispelling possible doubts.
The current account is a demand deposit, that is, the holder can withdraw his money, in part or in full, at any time, through different channels such as the Internet, dataphones, or ATMs. What differentiates this product is that in addition to the issuance of a debit card, another means of payment is delivered in the form of paper documents that are used to transfer money from one place to another, the famous checks.
Another unique benefit of checking accounts is the ability to have an overdraft quota. This means that if you carry out a transaction that exceeds your balance, the bank will lend you what is missing (according to and up to a certain limit in accordance with the policies of your entity). Keep in mind that like any other loan, the “overdraft” will generate interest charges.
Characteristics of the checking account:
- It comes with a debit card, with which you can manage your money, make payments in commercial establishments and withdraw cash through an ATM.
- You can authorize payments for services and disbursements to your account.
- You have the ability to write checks and request overdrafts.
Current accounts can be used by one or more people if stipulated, it is generally a product aimed at organizations or people who need to manage and administer large amounts of money.
Banks charge a management fee for this product, this cost is usually higher than that of a traditional savings account, in addition, the interest rate of current accounts is usually low, so this is not the ideal product for saving. On the contrary, you should keep in mind that if you do not use overdrafts well, you can be negatively reported in credit bureaus.
If the account holder unilaterally wishes to close the account, he may do so without prejudice, even so, always be sure that there are no checks to collect. Likewise, it is necessary to cancel the credits associated with the account and pay any overdraft, in conclusion, it is necessary to be up to date and leave the numbers in order.