What Is an IBAN and SWIFT Code? A Beginner’s Guide

Get to Know Bank Transfers with Clarity and Confidence

Bank transfers are easy to understand. A lot of people use them each day. A bank transfer is when you move money from one bank account to another bank account. You can use an app, do it on an online banking website, or go into your bank branch. Before you start, there are a few things you need to know. You need to have your account details ready. You might need the other person’s account number and account details too. This has their name and the bank’s code most of the time.

Bank transfers are safe and quick. A lot of the time, the money will get to the other account fast. Sometimes, it can take more time. This can happen if the money has to move on a weekend or if the banks need longer. You should read the rules from your bank first. Ask your bank if you do not feel sure. When you send money, check the account number and account details again. This is to help make sure you do not send it to the wrong person.

After you have done a few, you will feel good about using bank transfers. Using an app or online banking can help you send or get money at any time. A lot of people and businesses use this way to move money.

Sending or getting money to another country can feel hard. If you do international payments, use direct debit from your current account, or get a credit transfer from outside the country, you will see the words IBAN and SWIFT. These are very important. Financial institutions use these formats to find accounts and banks. They help you send money fast and keep it safe.

What Does IBAN Mean?

IBAN means International Bank Account Number. It is a special way to show a bank account number. You can see IBANs used in Europe and in other parts of the world too. It puts a country code and some check digits before your own bank account number. Sometimes, it adds a few location codes as well. This helps banks know exactly which bank account to use when money is sent from one place to another. Using the international bank account number, or IBAN, cuts down on mistakes when people send or get money between countries.

Format of an IBAN

An IBAN can be up to 34 letters or numbers. It usually has:

• Country code (2 letters, like GB for the UK)
• Check digits (2 numbers)
• Bank code
• Sort code (UK)
• Account number

Example (UK IBAN): GB29NWBK60161331926819

You can find your IBAN by going into your online banking app. It is also in your PDF bank statement. If you do not see it there, you can call your bank to get the IBAN.

What Is a SWIFT Code?

A SWIFT code is the same as a BIC code. It helps you find out which bank is in which country. The full name is Society for Worldwide Interbank Financial Telecommunication. You use a swift code or bic code when you want to send money to a bank in another country. This lets the money go to the right bank and the right place.

Format of a SWIFT/BIC Code

A swift code is made up of 8 or 11 letters and numbers. A swift code uses this format:

• Bank code is 4 letters.
• Country code uses 2 letters.
• Location code has 2 letters or numbers.
• Branch code may add 3 more characters, but you do not have to use them.

Example: HSBCGB2LXXX (HSBC London Main Branch)

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Why Are IBAN and SWIFT Important?

They make sure your money goes to the right person without delay, especially when you do SEPA payments or send money to banks in other countries. If you use the wrong details, your payment might not go through or it can take more time to get there.

Where Can You Find Your IBAN and SWIFT Code?

You’ll usually find them:

• You can see it on your bank statements, both if you get them on paper and in the PDF you get online.
• You will find this in your online banking or in your mobile banking app.
• You can also get it when you log in to your account and look under ‘Account Information’.

How Do IBAN and SWIFT Work Together?

When sending money:

• IBAN helps the bank find the right account the money should land in.
• SWIFT/BIC tells the system the bank that will get the funds.

Together, they make sure that international payments are safe. They also help these payments be quick and right every time.

IBAN and SWIFT by Country

Are IBAN and SWIFT Codes Secure?

Yes. These things are part of a safe worldwide payment set-up. Every bank and group in the swift system uses strong safety rules. This means the swift system sends locked messages and there are only a few people who can use it.

What Happens If You Use the Wrong IBAN or SWIFT Code?

• The payment might take some time to reach you.
• It can be returned to the sender, and there may be a small fee for doing this.
• You may need to talk to your bank if you want more details or help.

Always be sure to look over the other person’s information two times. Ask them if they can send you a message, so you can be sure it’s really them.

Are There Fees Involved in Using IBAN and SWIFT?

Yes. SEPA payments in euros usually cost very little or sometimes they are free. But if you send money outside of SEPA, there can be more fees for these international transfers.

Fee Comparison Example (Sending £1,000 internationally):

Key Takeaways

• The IBAN shows the account of the person or company.
• A SWIFT code is for the bank or place where you send money.
• You should always check both the SWIFT code and IBAN before you send money.
• Find out if the country uses an IBAN or only a SWIFT code.
• Use trusted places for sending money so your transfer will be quick and safe.

Correct as of 05 June 2025

FAQs – About IBAN and SWIFT Codes

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