What is a bank statement?
A bank statement is a document (also called an account statement) that is usually sent by the bank to the account holder every month, summarizing all of the transactions in an account during the month. Bank statements contain information about the bank account, such as the account number and a detailed list of deposits and withdrawals.
Key points to remember
- A bank statement is a list of all transactions for a bank account over a given period, usually monthly.
- The statement includes deposits, fees, withdrawals, and the balance at the start and end of the period.
- Account holders typically review their bank statements monthly to help track spending and spending, as well as to monitor fees or fraudulent errors.
How a bank statement works
A bank issues a bank statement to an account holder that shows the activity detailed in the account. It allows the account holder to see all the transactions processed on his account. Banks usually send monthly statements to an account holder on a fixed date. In addition, transactions on a statement generally appear in chronological order.
Many banks offer account holders the option of receiving paper statements or using paperless electronic statements, which are typically delivered by email. An electronic version of a bank statement is known as an electronic statement or electronic statement and allows account holders to access their statements online where they can download or print them. Some banks send statements by email to customers as an attachment. Some automated banking machines (ATMs) offer the possibility of printing a summary version of a bank statement, called transaction history.
Some institutions charge paper statements, while many online banks only require digital delivery.
Even with the convenience, value and accessibility of electronic statements, paper statements are unlikely to disappear any time soon. In 2020, about a third of U.S. residents did not have access to the Internet, according to the Pew Research Center.
A 2020 survey by Two Sides North America found that almost 70% of consumers find it easier to track expenses and manage their finances with paper statements. Two-thirds prefer a combination of paper and electronic statements. Many recipients of electronic statements always print their statements at home, preferring to keep a permanent record.
Benefits of a bank statement
When reconciling their bank account with the bank statement, account holders must verify the discrepancies. Account holders should report discrepancies in writing as soon as possible. A bank statement is also called an account statement. It indicates whether the bank is responsible for the money of an account holder.
Bank statements are a great tool to help account holders keep track of their money. They can help account holders keep track of their finances, identify errors, and recognize their spending habits. An account holder must check their bank account regularly – daily, weekly or monthly – to ensure that their records match those of the bank. This helps reduce overdraft fees, errors and fraud.
If discrepancies are found, they must be reported to the bank in a timely manner. Account holders generally have 60 days from the date of their statement to dispute any errors. They must keep monthly statements for at least one year.
Requirements for a bank statement
Parts of a bank statement contain information about the bank, such as the name and address of the bank, as well as your information. The bank statement will also contain information about the account and date of the statement, as well as the start and end balance of the account. Details of each transaction – including amount, date, and payee – that took place in the bank account during the period will also be included, such as deposits, withdrawals, paid checks, and service charges.
For example, a bank statement may show an interest-free chequing account with a starting balance of $ 1,050, total deposits of $ 3,000, total withdrawals of $ 1,950, a final balance of $ 2,100 and zero service charges for the period from September 1 to September 30.