What is a bank statement?

what is a checking statement

Bank statements are a great tool to help account holders keep track of their money. They can help account holders track their finances, identify errors, and recognize spending habits. An account holder should verify their bank account on a regular basis—either daily, weekly, or monthly—to ensure their records match the bank’s records.

A bank statement serves as a snapshot of all the financial activities for an account within a given time period. This includes transaction history, account balances, fees and interest earned and personal information like, your account number. A bank statement can be a useful tool for catching accounting errors or fraud and tracking your spending habits.

  • Banks take great care to maintain the privacy and security of their customers’ personal information.
  • Understanding your bank statement can help you learn more about your money habits and make better financial choices.
  • For example, maybe your card was charged twice while you bought something online.
  • Your bank statement should never be shared with unknown parties without your consent, and nobody else should be able to access your statement history.
  • A bank statement shows the transactions made on a bank account during a certain period, detailing every activity or transaction.

Some banks may list a Year-To-Date (YTD) total of interest earned. Make purchases with your debit card, and bank from almost anywhere by phone, tablet or computer and more than 15,000 ATMs and more than 4,700 branches. You may call your bank if you cannot log in online or if you have questions about how to enable paper statements. This information can help avoid overdraft fees by keeping track of account balance and making sure there are sufficient funds to cover all transactions.

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If you’re a Huntington customer, you can also take advantage of The Hub to help you manage and keep track of your finances. You’ve heard of SEPA payments, but what does it stand for, and how does it actually work? This information can be useful in making future financial decisions, such as whether to increase savings contributions. Ever wondered what all those confusing banking acronyms actually mean?

what is a checking statement

Luckily, your bank is legally required to hold onto your statements for at least five years. Electronic statements allow customers to access, download and print their statements wherever they have internet access. You should see an option along the lines of “statements” or “statements and tax forms.” Click on this option, and you’ll see a list of statements by month or quarter. Bank statements do not necessarily mirror the days in a calendar month.

How To Get a Bank Statement Online

Statements will also show fees that your bank has charged, as well as rejected or cancelled payments. The majority of banks and credit unions allow bank account holders to view their bank statements online for free. An official bank statement is typically sent by the bank to the account holder every month, summarizing all the transactions of an account during the month. First, it helps you verify bank transactions, ensuring there are no mistakes.

Depending on the bank, you may have to pay a fee to access statements that are more than a year or two old. Most bank statements start by grouping all deposits together, giving you an idea of exactly what came into your account during the preceding month. Your summary will include your account balance at the beginning of the month, then show your ending account balance after all of the deposits are added and the withdrawals are made. Parts of a bank statement include information about the bank—such as bank name and address—as well as your information. The bank statement will also contain account information and the statement date, as well as the beginning and ending balance of the account.

what is a checking statement

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. Here’s everything you need to know about what a bank statement is and how to get one. Bank statements are useful for lenders, divorce attorneys, credit bureaus, and landlords, but they can also be helpful for you personally. Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice.

Adjust Your Records

All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This automatically sends you online statements instead of getting them in the mail. 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. If you encounter a mistake, take time to verify that it’s truly a mistake.

what is a checking statement

Emily Batdorf is finance writer and marketing strategist based in northern Michigan. She has a bachelor’s degree from the University of Michigan and enjoys writing for both personal finance platforms and financial professionals. With each line item on the statement, you’ll see the transaction date and the payer or payee. Your statement may include customer service contact information and actions to take if you find errors on your statement.

Filing for Tax Returns

See today’s mortgage rates, figure out what you can afford with our mortgage calculator before applying for a mortgage. Using an updated version will help protect your accounts and provide a better experience. Monitor your account activity regularly and know the fraud policies of your bank in case your account is compromised. 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. Bank statements can be used as proof of income when filing tax returns.

  • In some cases, your bank statement can also provide you with documentation that allows you to get a loan.
  • Bank statements can usually be accessed via your bank’s website by logging in to your online account or smartphone app.
  • Some banks still print these statements along with an accompanying set of images of all cleared checks.
  • In general, you see your transactions in the order they occurred.
  • Some banks automatically send out your monthly bank statements by mail when you sign up for an account.

If you need to save statements from the past, it’s possible to download them to your computer and store them in an encrypted folder or keep paper copies. In general, when you no longer need a bank statement, you should shred paper copies and delete electronic copies. Bank statements are used to track your account activity, check that the funds coming in and going out are correct, and flag any suspicious activity. By checking statements regularly, you can help keep your account safe and secure, while staying on top of your finances. It is also an ideal way to show proof of your earnings for loan applications or mortgage agreements.

If you wrote any checks, you’ll see the check number and the dollar amount. Bank statements can usually be accessed via your bank’s website by logging in to your online account or smartphone app. You can choose how you access your statements by contacting your bank and opting into postal or paperless options.

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That way, you can see whom you paid (or who paid you) and the date the transaction actually cleared the bank. With this information, you can manage your savings and make better financial choices. A bank statement is a document prepared by your financial institution each month.

Electronic funds transfers include ATM and debit card transactions, online bill payments, direct deposits and recurring payments made from your account. The person receiving a bank statement should compare the information in it with his or her own records of the same transactions. Any discrepancies may have arisen at the bank (such as a transposed number in a check payment or a deposit), for which the bank should be contacted at once to make an adjusting entry.

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. If you have more than one account at a single bank, such as multiple savings accounts or checking accounts, they’ll generally show up on one statement per cycle from the institution. A one-month statement period doesn’t necessarily last from the first to last day of a month. For example, your bank could track your account from the fifth day of a month to the fourth day of the following month.