What Is a Bank Statement: Definition, Benefits, and Requirements

When you find one, quickly contact your bank or credit union to correct the error. Most financial institutions have a dispute-resolution process, including the ability to submit a dispute online or call an 800 number to speak with a banker. To keep your bank statements secure, shred them before throwing them away, and never respond to unsolicited requests for your personal or financial information. It is important to keep your bank statements secure to protect your personal and financial information from identity thieves and scammers.

What’s in a bank statement

Bank statements are useful for lenders, divorce attorneys, credit bureaus, and landlords, but they can also be helpful for personal financial planning. 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. Maintain a file with records of correspondence between you and the bank or third party.

How often should you check your bank statement?

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. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. 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. Most taxpayers receive a W-2 form from their employer, which shows the total amount of money earned over the course of a year.

In general, you see your transactions in the order they occurred. The detailed list of transactions will give you an idea of when the money comes into your account each month, and when the money goes out. At the top of a bank statement, you’ll generally see the statement period dates and bank information. The rest of the statement is your transaction history, which includes withdrawals, deposits, transfers, and common bank fees you paid. Contact your financial institution to inform them of the error and provide proof of the mistake. You may be able to do this by calling the bank’s customer service department, sending a secure message through your online bank account or by email.

Here’s everything you need to know about what a bank statement is and how to get one. Kevin has been writing and creating personal finance and travel content for over six years. He is the founder of the award-winning blog, Family Money Adventure, and host of the Family Money Adventure Show podcast.

What Is the Difference Between a Bank Statement and a Transaction History?

By reviewing bank statements on a regular basis, any unauthorized activity in the account can be immediately spotted. However, taxpayers who are self-employed or have other forms of income will need to provide additional documentation, such as bank statements, to show how much money was earned. By reviewing deposits and withdrawals, account holders can see how much they are saving on a monthly or yearly basis. It contains bank account information, such as the account holder’s name, account number, and a detailed list of deposits and withdrawals. Some banks charge a fee for a paper statement, so it might make sense to go paperless and get your statements electronically. If you notice any inaccuracies on your bank statement, you should report them to your financial institution right away.

Customers who have their paychecks, Social Security checks or other payments directly deposited should make sure they appear on their monthly bank statements. First, it helps you verify bank transactions, ensuring there are no mistakes. It lets you make sure you didn’t miss a payment or pay someone twice. And you can track any uncashed checks from the previous month.Reconciling your statement gives you insight into your finances and how you spend your money.

1. The goal is for the ending balance on your statement to match your monthly records.
2. If you’re using your bank statement to reconcile your accounts, check it every statement period.
3. Here’s a closer look at bank statements, how to read them and how to correct errors.
4. Some account information, such as a limited transaction history, might be available by calling the bank.
5. A bank statement is a monthly or quarterly document that summarizes your banking activity.

Banks are required by law to keep customer account records for at least five years. Once the error is corrected, make the necessary adjustments to your records. It’s a good idea to keep records of your correspondence with your bank or third party if any issues arise later. You can also automate total revenue formula reconciliation by using products such as Quicken or YNAB (You Need A Budget) software.

For example, a pending transaction – such as a check that has been written but not cashed – will not appear on the statement until it has been processed by the bank. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. You can use the following key terms to better understand your bank statement.

By understanding what a bank statement is, how it works, and how to keep it safe, you can make the most of this important document. Bank statements include information that identity thieves and scammers can use to commit fraud. The mailed statements will be the same as what can be viewed online. Bank statements can be used to calculate the amount of interest that has been earned on a deposit account. This information can be useful in making future financial decisions, such as whether to increase savings contributions.

This includes deposits, withdrawals, fees, and interest credited. You might receive a printed copy by mail or, more typically, online. Account statements provide a comprehensive overview of transactions, balances, and activities in a bank, financial, or other account. They include details such as deposits, withdrawals, interest earned, fees charged, and the current balance (if applicable). But most banks and credit unions tax considerations for college students 2020 now offer account holders the option of receiving paperless electronic statements through their online bank account.

Bank statements contain checking and savings account information, such as account numbers and a detailed list of deposits and withdrawals. Many banks have been urging customers to “go paperless” and receive their statements online. Some banks notify their customers by email when their statements are ready to be viewed electronically.

Your statement may include customer service contact information and actions to take if you find errors on your statement. Unless you give out your account number, banks do not release information regarding your bank statement to unknown third parties without your consent. The law mandates that banks keep customer account records for at least five years. If your bank keeps your records for seven years and you can access them, you may not want to keep copies yourself.