How To Start A Bank Account

- 07.10

How to Open A Bank Account Step by Step
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New Zealand bank account numbers in NZD follow a standardised format of 16 digits:

  • a prefix representing the bank and branch (six digits), otherwise known as the Bank code;
  • the body (seven digits); and
  • the suffix representing the product/account type (two or three digits).

While the New Zealand format is similar to Australia's Bank State Branch, the two systems are not interchangeable.

New Zealand bank account numbers in foreign currencies vary by bank.


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Background

The origins of the format lay in the establishment of the Databank Systems Limited, a company set up by a consortium of competing banks New Zealand, to provide computing resources (development and operational) for the consortium members.

Bank codes are coordinated by Payments NZ who administer the Bulk Electronic Clearing System (BECS). The scope of BECS includes direct debits, automatic payments, bill payments, and direct credits. Payments NZ also administer the following payment systems in New Zealand:

  • Paper Clearing System
  • High Value Clearing System
  • Consumer Electronic Clearing System

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Format of account numbers

Account numbers are generally presented in the format:

where B is the bank number (2 digits), b is the branch number (4 digits), A is the account number (7 digits) and S are digits of the suffix (2 or 3 digits). Where a bank displays the suffix as two digits, a leading zero is added to pad the suffix to three digits; i.e. BBbbbb-AAAAAAA-SS becomes BBbbbb-AAAAAAA-0SS.

This format allows customers to have a single account number with differing suffixes for multiple accounts of differing types. This does not include credit card and loan products.


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Account number prefix

Bank accounts are prefixed with six digits, two indicating the bank and four which indicate the branch. The table below shows which banks are allocated which bank prefix. A current list of branches as their associated bank/branch numbers is available for download from the Payments NZ website.


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Account number body

The account body consists of seven digits, right adjusted and padded with zeroes if necessary. The last digit of the body is a check digit which can be validated using a modulus algorithm.


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Account number suffix

The table below shows the account number suffixes as introduced by Databank Systems Limited from 1969.

Source of the article : Wikipedia



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