What is a bank statement and why is it important to review?

What does a bank statement look like?

Every bank creates its own statements, meaning each statement may look different depending on where the checking or savings account is. However, most bank statements share similar features, like:

• The physical address of the bank
• The bank’s contact information
• Account information, including routing numbers and account numbers
• The statement period
• The balance at the beginning of the statement period
• The balance at the end of the statement period
• Transaction details for deposits and withdrawals
• Interest earned over the statement period (if applicable)
• Any account management fees for the statement period

People can use this information to inform their money management plan and stay on top of their finances each month.

How to get a bank statement

People can get bank statements in several ways. Regardless of the method used, the statement should convey the same information, just in a slightly different format.

Ways to get an official bank statement include:

• By mail: Banks, credit unions, and other financial institutions often send monthly bank statements by mail to the account holder’s preferred mailing address. These statements should look the most similar to the example above.
• By email: If the account holder chooses to go paperless, the bank may email them their monthly statements. These statements should look similar or identical to the paper statements sent by mail. This can make it easier to monitor transactions by eliminating paper statements.
• By visiting the bank’s online banking portal: Account holders can also access their bank statements through their bank’s online banking portal. Most banks have a dedicated tab or link to the account’s statements page. Account holders can either view their statements online or download them to their computer or mobile device.
• Through the bank’s mobile app: Most banks and credit unions have mobile banking apps that account holders can use to access bank statements and transaction histories at a minimum. Every bank’s app is different, so the location of the statements may vary.

The statements should be available each month after opening a bank account. Keep in mind that some banks may delete older statements from their online portals. People can still access older or deleted statements by contacting the bank’s customer service line.

What is the purpose of a bank statement?

Bank statements give account holders a deeper understanding of their finances during each statement period. Most statement periods are typically one month long, beginning on the first and ending on the last day of the month.

The statements serve as proof of the transactions made through the account, money deposits made into the account, and other similar information.

Each transaction on the statement includes key details, such as the name of the business or individual the account holder paid or received money from. It will also show the date the transaction happened and the amount of money deposited or withdrawn from the account.

People can use this information to make sure bills are paid on time and in full each month and better stick to their monthly or bi-weekly budgets.

Why is it important to review bank statements?

It’s a good idea to review bank statements as soon as the bank generates them. Here’s why reviewing statements regularly is so beneficial:

• Identify errors: Checking statements often gives people the chance to look for and identify errors, like transactions that are higher than they should be or withdrawals the account holder didn’t approve.
• Monitor for fraud: Reviewing the transaction history for a given statement period lets account holders check for fraudulent transactions. If there is fraud, the person can report the transaction to the bank, which may be able to refund their money.
• Reviewing fees: Banks can charge fees for account maintenance, overdraft, and non-sufficient funds. Reviewing statements gives people the chance to review any fees charged and make sure they’re valid and accurate.
• Manage spending habits: Since bank statements give account holders access to their transaction history for the month, the statements can help people track their spending. This helps account holders adjust their budgets as needed to better align with their income and goals.
• Spotting unused subscriptions: By reviewing bank statements, people can more easily spot and cancel unused subscriptions so they can save money.link to nsf fee vs overdraft fee when live

These are just some of the things bank statements show. Reviewing statements at least once a month can help people better manage their money and stay on track to hit their financial goals.