What is an Account Number and how is it useful?

Account numbers are numbers of accounts. An account number can be composed of letters, numbers or a mix of the two. Account numbers grant access to an individual holding that number. Account numbers are unique numbers such that no two persons can have access to the funds in the account unless it is a joint account.

An account number is the primary and important part of the accounting process as all of the accounting is done under the use of the account number.

Account numbers can ideally be digital or manual. Digital account numbers are often protected by a password.

Individuals can invest or manage their accounts using their respective account numbers. It is key to open an account and without it many accounts may turn redundant.


Account numbers are attached to accounts that are exposed to transactions. Credit and debit cards and social security cards all have account numbers.

Banks and other financial institutions want to secure the funds in account numbers and hence it is secured by a three-step authentication where some questions are added that only the account holder may be aware of. For example, a mother's maiden name and best friend's nickname may be asked by the bank after ensuring the passwords are okay.

Account numbers are also protected by fingerprints, voice, and eye lens verifications in some instances.

Points to Note

  • One account number is usually meant for one individual in the case of bank accounts. However, joint accounts may be opened by two individuals too.

  • Banks and other financial institutions want to secure the funds in account numbers.

Updated on: 27-Jul-2021


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