An IBAN number stands for International Bank Account Number. It’s basically a standardized way to identify bank accounts internationally. Think of it like a passport for your money, but instead of identifying you, it identifies your specific bank account.
Here’s what an IBAN is used for:
- Simplifying international money transfers: IBANs make it easier for banks to process international transactions by including all the necessary info in one code. This reduces errors and delays.
- Accurate identification: IBANs contain details like the country code, bank identifiers, and your specific account number, ensuring your money goes to the right place.
IBANs are most commonly used in Europe, but they’re being adopted by banks in other parts of the world as well.
If you ever need to send or receive an international money transfer, you’ll likely be asked for your IBAN number. You can usually find your IBAN on your bank statements or online banking portal.