You might think of a bank statement as a report on all the financial dealings that took place at a given financial institution over a given time frame. A typical bank statement may detail your monthly deposits and withdrawals. You may use your bank statement to monitor your accounts for any unusual or suspicious behavior and to double-check all of your previous transactions. When applying for a mortgage or loan, you can also be asked to provide a bank statement.
Incorporating the practice of checking your bank statements into your routine is a step toward improved fiscal wellness and more financial independence.
What Shows up on a Bank Statement?
Bank statements might contain different information depending on the bank that issued the statement. Both your checking and savings accounts at the same bank may appear on the same report.
This is the typical information seen on a bank statement:
- Account number
- Home address
- Statement period
- Bank’s customer service number
- How to report errors or fraudulent activity
- Beginning balance for the time period
- Deposits
- Checks
- Direct deposits
- Electronic transfers
- Canceled checks or payments
- Reimbursements or credits
- Withdrawals
- Purchases and payments
- Electronic transfers
- ATM withdrawals
- Auto payments
- Fees charged by the bank
- Interest or dividends earned
- Ending balance for the time period
A date and the name of the payer or payee will be displayed underneath each item.
Depending on the kind of statement, the period covered may not always begin on the first of the month or the fiscal quarter. Your billing cycle may span, say, September 6th to October 5th.
It is important to notify your bank immediately if you discover any errors on your statement. If you find an error on your account, you typically have 60 days from the statement date to file a dispute. Disputes are often settled in writing, so be prepared to submit any relevant evidence. In this case, the bank or other financial institution should assist you in fixing the mistakes and investigating the fraudulent behavior.
How Can I Get a Bank Statement?
Monthly bank statements are the norm, however quarterly statements are also available. Your bank may provide you with a paper statement, an electronic one, or both.
How to Access Your Bank Statements Online
Most financial institutions now let you examine your bank statements online for free. This is a general outline of the procedure, as it may differ somewhat from bank to bank.
- Log in to your account through the bank’s website or app.
- If you’ve never signed in online, you may have to create an account or call customer service.
- Find where your bank houses their electronic statements.
- Look under headings like “services,” “bank statements,” or “e-statements.”
- Select the statement period you want to view.
- Review the statement on your computer, tablet, or phone — or download your statement as a PDF.
- Save your bank statement in a secure location on your computer (if you wish), print it, or close out the screen.
- Log out of your bank account for security purposes.
While signed in, you’ll be able to make the necessary changes to your account to “become paperless.” As a result, you will no longer get paper copies of your statements in the mail but instead access them and make necessary edits in an easy-to-use online format. If you switch to electronic banking, several financial institutions may reward you with a one-time bonus credit.
How to Get Paper Statements by Mail
Some financial institutions may start sending you monthly account statements in the mail after you open an account with them. The statements you receive in the mail will be the same as the ones you may see online.
Even if you opt in to paperless banking and agree to receive your bank statements electronically, your financial institution must still provide you with a paper copy upon request. First, access your account using the bank’s website or mobile app. Seek out sections labeled “account settings” or “services” to submit a request for paper statements. There may be a charge from your bank if you choose to get paper copies of your statements.
You can usually find the customer support number for your bank on your debit card if you’re having trouble logging in online. Download your bank statement as a PDF and print it if you don’t have the option of having it addressed to you.
How Long Do Banks Keep Records of Statements?
Depending on their internal policies, financial institutions have up to five years to store customer statements in accordance with the Bank Secrecy Act. The financial institution will preserve your account information for at least five years after you’ve cancelled your account. Having a statement from your bank from years ago serves what purpose? Tax audits, lawsuits, divorces, and loan applications are just some of the many situations in which you’ll require access to your financial documents.
Typically, bank statements from the previous year or two may be retrieved online for free. If you need to see older bank statements than what is available online, you may incur fees. A bank may impose a fee of $5 per statement if you want a statement from more than four years ago. For this reason, some save their bank statements for as long as possible. Statements should be shredded after use to protect personal information.
What Can I Do with a Bank Statement?
There are several situations in which bank statements become useful. Bank statements are a simple tool for managing money, useful for everything from keeping tabs on spending to spotting mistakes.
The most common uses for a bank statement are as follows:
- Gauge your spending: Review your bank statement monthly to keep a tab on your expenses.
- Track your savings: Look at your beginning and ending balances over the course of a month or a quarter. Take note of how much you’re accumulating.
- See how much interest you’re earning: If your bank or credit union gives you interest, see how much money it’s making you every month. Depending on what interest you earn, you may want to put some of your money in an investment account or money market to earn more.
- Monitor your account balance: Reduce overdraft fees by ensuring you always have enough to pay for bills and ATM transactions.
- Identify fraud: Review your statements regularly to help spot fraudulent activity, like someone using your debit card. Promptly contact your bank should you find any fraudulent transactions.
- Catch banking errors: Banks sometimes make mistakes. Contact your bank if you suspect any errors, such as depositing in the wrong account or mischarging you.
- Watch for mistakes: Say a waiter accidentally typed in $52 on a restaurant credit card machine when your bill was only $25. Make sure your bank account is free of errors, duplicate charges, and discrepancies.
- Apply for a loan: Whether it’s a personal loan or mortgage, you may have to provide bank statements to your lender to prove your financial standing.
- Rent an apartment: A landlord or rental agency might request to see your bank statements before signing a lease.
- Refinance your home: Financial institutions may want to see several bank statements if you plan on refinancing your home.
- File your tax return: You may need to reference your bank statement when you file your taxes.
- Maintain records: Keep your statements in a safe place in case you need them in the future. You can download them on your computer or print them and place them in a secure file.