What Is A Bank Statement?

You should receive an account statement for any deposit account you have with a bank, including a savings account, checking account, money market account or certificate of deposit (CD). A bank statement is a detailed record of all transactions that occurred on a bank account over a period of time, or “statement cycle,” which is usually a month. Typically, the only parties that can check your bank statements or your account information are the account owner(s), authorized account managers and bank professionals. Banks take great care to maintain the privacy and security of their customers’ personal information. In addition to providing you with a bird’s-eye view of your cash flow, reconciling your bank statements can help you catch errors in your accounts.

Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. Account holders can use this information to compare the interest rates of different banks and make sure they are getting the best return on their investment. If any are found, the account holder should contact their bank immediately. Banking reviewer and writer Emily Batdorf contributed to this article.

Many recipients of e-statements still print out their statements at home, preferring to keep a permanent record. A bank deposit account is at the same time an asset of the depositor and debt of the bank. A statement typically presents the bank’s view of the account, with credit entries increasing the bank’s debit and debit entries reducing it.

General guidelines for keeping bank statements?

Bank statements contain checking and savings account information, such as account numbers and a detailed list of deposits and withdrawals. Since the late 1990s, banks have encouraged customers to receive statements electronically. The switch normally requires express customer consent, which is typically obtained through an online banking system. Producing electronic statements saves financial institutions the significant cost of printing statements, folding them into envelopes and postage.

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3. A bank statement is a detailed record of all transactions that occurred on a bank account over a period of time, or “statement cycle,” which is usually a month.
4. A statement can help you track finances, catch account mistakes and understand your spending habits.
5. This includes point-of-sale (POS) transactions, ATM withdrawals, checks that are written and cashed, and debit card purchases.

Historically, the production of statements was regarded as part of the banking function, the cost of which was part of providing the service. More recently, however, to encourage customers to opt to receive electronic statements, some financial institutions charge a fee for paper statements. A bank statement is a detailed summary of all the financial activities for an account over a specific time period, highlighting the comings and goings of your finances. It provides a record of your money and regular reviews of your bank statements can be helpful for tracking expenses, spotting potential accounting errors and identifying fraudulent activity. Let’s learn more about how to make the most of your bank statement.

How often should you check your bank statements?

These valuable financial tools may arrive via mail, email or your online bank account. If you have a checking or savings account, you likely receive a monthly bank statement from your financial institution. Keeping tabs on your checking or savings account activity is an important part of any money management strategy. And reviewing your monthly bank statements is a great way to stay on top of your finances. But most banks and credit unions now offer account holders the option of receiving paperless electronic statements through their online bank account. A bank statement gives you a comprehensive look at all of the activity happening in your checking, savings or other financial accounts within a given period of time.

It is important to note that not all transactions may appear on a bank statement. Dates, time stamps, and third party details are also shown in each transaction so that the account holder can see and review information about who the payment was to or from. If you opt into receiving e-statements, you’ll usually get an email notifying you when a new statement is available. You can follow the prompts in the email to view and download your new statement, or you can access recent statements at any time by following the steps below.

In addition, customers could receive statements more promptly, and not be dependent on the postal delivery service. The customer could print the statement at their premises[3] if they needed one, or have access to historic statements on the institution’s website as needed. Other parties may be authorized to have access to the customer’s filing and payment deadlines questions and answers financial information on the institution’s website.

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However, receiving paper bank statements may lead to a fee due to the labor and supplies cost of printing and mailing the statement. Bank statements are typically mailed to the account holder’s address on file. However, many financial institutions encourage customers to go paperless to receive electronic statements.

Bank statements are documents that show all the transactions in your bank account for a specific period of time. By reviewing bank statements on a regular basis, any unauthorized activity in the account can be immediately spotted. By reviewing deposits and withdrawals, account holders can see how much they are saving on a monthly or yearly basis.

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It gives a starting and ending balance record so that the account holder will have a clear idea of the amount of money at the close of the month compared to its beginning figure. For example, maybe your card was charged twice while you bought something online. Reconciling can help you catch these errors early so you can make the necessary corrections.

The reports are a great tool to track your money and stay on the same page as your bank or credit union. It could be that you made a purchase you forgot about, or you recorded the wrong purchase amount in your budgeting app or spreadsheet. Review recent paper receipts or online confirmations to verify transactions. If you believe a transaction on your statement is in error, report it to your bank or credit union.

A bank statement helps you review your account’s activities during a certain period. Doing so can help detect fraud, accounting errors and refresh your memory of the period’s activities. If you receive electronic statements only, consider downloading them. Some banks might limit access hedging definition to statements after a few years, or you might choose to switch to another financial institution in the future.

Bank statements are also extremely helpful for budgeting, as they allow account holders to decipher how much they are spending on different categories. Bank statements are a great tool to help account holders keep track of their finances, identify errors, and recognize spending habits. Bank automatic teller machines (ATMs) may be able to print a summarized version of a bank statement, called a transaction history. How long you should keep your bank statements largely depends on how you’re using them.

This means matching your own record of deposits, withdrawals, interest and fees with the information on your bank statement. Reconciling can help you catch errors or even account fraud if there are unauthorized expenses. It can also help you keep track of your balance, which is key to avoiding overdraft fees. Some banks automatically send out your monthly bank statements by mail when you sign up for an account.