A bank statement is a document that summarises all the transactions in your account over a given period. This can be anything from a couple of days to a month. It’s an important document because it shows you what money has come into and gone out of your account, and can help you keep track of your spending.
It can also help you spot any fraudulent activity on your account. In this blog post, we’ll take a closer look at bank statements and how to read them.
We’ll also discuss some of the things you should look out for so that you can better protect your finances.
What is a bank statement?
A bank statement is a document that shows all of the activity in a person’s bank account over a period of time. This includes deposits, withdrawals, fees, and interest earned.
The statement also shows the ending balance for the period. Bank statements are usually sent out monthly, but some banks will send them more or less often upon request.
A bank statement is a summary of all the transactions that have taken place in your account over a given period e been applied to your account.
How to read a bank statement
Assuming you receive your bank statements electronically, open up the PDF or image of the statement. If you have a physical copy, find a quiet spot to sit down and go through it.
The first page usually contains information about your account, like your account number, routing number, and current balance. This is followed by a breakdown of transactions that occurred during the statement period.
Each transaction will have the date, description, amount, and running balance listed. Deposits will be denoted with a plus sign (+) while withdrawals will have a minus sign (-). Be sure to scan through each transaction to make sure everything looks correct.
If there are any fees charged to your account, they will be itemized on the statement as well. At the bottom of the first page (or sometimes the second), you’ll find a summary of deposits, withdrawals, and any fees incurred during the statement period.
How Does a Bank Statement Work?
Most people receive a bank statement every month, but few know how it is generated. In this article, we will explain how a bank statement works.
A bank statement is a record of all the transactions that have taken place in an account over a given period of time. This includes both deposits and withdrawals. The statement will also show any fees that have been charged to the account and any interest that has been earned.
The first thing you will see on your bank statement is the date range for which it covers. This is followed by a list of all the transactions that took place during that time period. Each transaction will be listed with the date, amount, and type (deposit or withdrawal).
At the end of the statement, you will see a running total of all deposits and withdrawals for the month. This will give you an idea of your current balance. If there are any fees or interest charges, they will be itemized at the bottom of the statement as well.
What to do if there are errors on your bank statement
If there are errors on your bank statement, the first thing you should do is contact your bank. They will be able to help you resolve the issue and get your statement corrected.
It’s important to keep an eye on your bank statements so that you can catch any errors as soon as possible. This way, you can avoid any potential fees or penalties that could be associated with the mistake.
If you find an error on your bank statement, don’t hesitate to reach out to your bank for help. They will be able to resolve the issue and get your statement corrected.
Tips for managing your finances with a bank statement
A bank statement is a record of all transactions made through a checking account, savings account, or money market account during a specified period of time. The statement shows the account’s beginning and ending balance for the period as well as any deposits, withdrawals, checks, fees, interest earned, or service charges incurred during that time.
Most banks mail out paper statements monthly, but some offer electronic statements that can be accessed online. Many also offer the option to receive text or email alerts whenever a transaction is made.
Here are some tips for managing your finances with a bank statement:
– Always review your bank statement carefully as soon as you receive it. This will help you catch any errors or fraudulent activity immediately.
– Make note of any automatic payments that are being deducted from your account so you can keep track of them and ensure they are going through as planned.
– If you see any unexpected charges on your statement, research them right away to determine if they are legitimate. If not, contact your bank immediately to report the fraud.
– Use your bank statement to reconcile your checkbook each month. This will help you make sure you haven’t missed any transactions and that all of your records are up-to-date.
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How Long Should I Keep My Bank Statements?
Most people don’t give much thought to how long they should keep bank statements. After all, once you’ve reviewed your statement and balanced your checkbook, what’s the point of hanging on to it?
But hang on to those bank statements you must. How long? At least a year. Why? Because you never know when you might need to refer back to them.
There are all sorts of reasons why keeping old bank statements is a good idea:
- To reconcile your records with your bank’s records in case of errors
- To document income for tax purposes
- To help track expenses and spot trends over time
- To prove ownership of assets in case of theft or lossSo how long should you keep bank statements? A year is a good starting point. But if you have space and resources, keeping them for several years is even better.
Paper Bank Statements vs. Electronic Bank Statements
There are two types of bank statements: paper and electronic. Paper statements are the traditional way that banks have always provided account information to their customers. Electronic statements, or e-statements, are a relatively new option that banks offer for customers who want to receive their account information electronically.
Paper bank statements are mailed to the customer’s home address each month. They include all of the same information as an e-statement, including account balance, deposits, withdrawals, and transactions. The main advantage of paper statements is that they provide a physical record that can be filed away or kept for records.
The advantages of electronic bank statements include convenience and environmental friendliness. Customers can view their e-statements anytime, anywhere they have internet access. And because there is no paper involved, e-statements are more environmentally friendly than paper statements.