What Is A Bank Statement?

what is a bank statement used for

You may call your bank if you cannot log in online or if you have questions about how to enable paper statements. Bank statements can be used to track your spending, see where you can cut back on expenses, and catch errors or unauthorized transactions. This information can help avoid overdraft fees by keeping track of account balance and making sure there are sufficient funds to cover all transactions. If any discrepancies are found, they must be reported to the bank in a timely manner. Account-holders usually have 60 days from their statement date to dispute any errors.

what is a bank statement used for

Bank statements do not necessarily mirror the days in a calendar month. Instead, customers may request that their bank statements cover a one-month period that ends on a different date (for example, the 25th day of the month). Regularly checking your bank statement may also help to keep tabs on any potential fees. Overdraft fees, minimum balance fees and maintenance fees can catch customers by surprise. Some banks may charge you a certain fee for mailing the paper statements since it costs them to print and mail them to you.

The Difference Between Paper and Online Bank Statements

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. If contacting your bank by phone, let them know you have evidence of the error and ask them the best way to send it. Some banks charge a small fee for paper statements, but often you have the option to opt out of paper statements and receive a fee-free online paperless statement (e-statement). Typically, you can select your preference within your online account settings. By laying out your account’s overall activities, a bank statement can help you monitor your spending and spot trends that may have gone unnoticed during day-to-day spending.

Banks take great care to maintain the privacy and security of their customers’ personal information. For any accounts surpassing $100 in transactions, banks — including those you’ve closed accounts with — keep records for a minimum of five years. Some institutions may choose to keep records longer, though they aren’t required to. Many financial institutions allow you to opt out of paper statements or set up e-statements through online portals. Some individuals prefer checking their bank statements once a month if everything is in order. However, to maintain a good awareness of your financials and spending habits, it is recommended to check your bank statements at least once a week.

With a checking account, a bank statement can be several pages long, depending on how many times you use your account to cover expenses. 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. 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. Bank statements can be delivered on paper or as electronic versions that customers can access on the bank website and download.

What Is an Official Bank Statement?

Your bank may message or email you when your statement is ready, usually on a monthly basis at the end of your statement period. Every banking portal is organized differently, but Huntington account holders will see a statements tab on their Online Banking profile. By clicking or tapping that, you’ll see two years of bank statements that you can view immediately. This could be either a paper statement in the mail or an e-statement sent through email.

  • Bank statements ensure that account holders are aware of their current balance.
  • 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.
  • Parts of a bank statement include information about the bank—such as bank name and address—as well as your information.
  • With a checking account, a bank statement can be several pages long, depending on how many times you use your account to cover expenses.
  • This could be either a paper statement in the mail or an e-statement sent through email.

By reviewing bank statements on a regular basis, any unauthorized activity in the account can be immediately spotted. A bank statement shows the transactions made on a bank account during a certain period, detailing every activity or transaction. A bank statement is designed to show you exactly what happened with your account during the past month, detailing your spending habits and any incurred expenses. 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 can compare the transactions recorded by the bank to your own personal records and use them to spot financial frauds. If there are no mismatches, then the records are accurate and validated. Bank statements are required by investors, creditors, lenders, business managers, and owners of financial institutions to assess the creditworthiness of individuals. These statements are requested by credit card companies and banks in order to verify borrower applications.

How long do banks keep records of bank accounts?

All our accounts provide you with detailed statements, so you can always see where your money is going. Making our customers’ data secure is our top priority, so rest assured your account history is securely logged and never shared with anyone. Using your bank statement to review your spending habits is a great way to help you identify possibilities for saving. Looking at a full overview of your spending gives you the chance to see where you could stand to cut back or tweak your spending habits.

Your bank’s contact information can most likely be found on your bank statement. In some cases, your bank statement can also provide you with documentation that allows you to get a loan. When you click on the time frame you want to view, your device will probably automatically download the statement. This way, it’s saved to your device and you can print the statement if need be. 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.

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. It’s always a good idea to keep records of your bank statements in case you ever need to reference your financial records. Luckily, your bank is legally required to hold onto your statements for at least five years.

what is a bank statement used for

Bank statements contain bank account information, such as account numbers and a detailed list of deposits and withdrawals. 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.

Even with the convenience, value, and accessibility of electronic statements, paper statements aren’t likely to go away anytime soon. In 2021, 7% of adults in the U.S. reported that they do not use the internet, according to the Pew Research Center. Some institutions charge for paper statements, while many online-only banks require digital delivery.

Reduces accounting errors

This is because bank statements can provide insight into a person’s financial history and ability to repay the loan. Bank statements are essential documents that provide a detailed record of income and expenses. This includes cash and check deposits, incoming wire transfers and fund transfers, and direct deposits from an employer. Dates, time stamps, and third party details are also shown in each transaction so that the account holder can see and review information about who the payment was to or from.

what is a bank statement used for

A transaction history differs from a bank statement in that it is a record of all transactions for that bank account for a set period that you have chosen. Typically, a bank statement only covers one month of transactions and may leave recent or pending transactions out. Your bank statement details all of the transactions made with your account in a month. By looking at your bank statement, you can see all of the money that has come into your account and out of your account in one place.

The opening balance is the balance of your account at the start of the time period covered by the statement. The closing balance is the balance of your account at the end of the time period covered by the statement. Bank statements contain all transactions that were completely processed during the time period covered by the statement. You should verify that your name, address, and additional contact information is accurate and up to date. Typically, this information can be found at the top of your bank statement. A bank statement is a document from the bank that covers a specific time period, usually a month, that shows all the activity on your account for a time period.

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. They may also use this information in deciding whether to change savings accounts or invest in other products that are more profitable. Bank statements can be used to calculate the amount of interest that has been earned on a deposit account. If any are found, the account holder should contact their bank immediately. Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money.

The only view someone can view your bank statements online is if they have access to your account details, credit/debit card number, net banking details, and PIN number. The top of your bank statement contains sensitive information such as the bank account number and branch name. All bank statements have a summary table in them that lists opening balances, withdrawals, deposits, time periods, and closing balances.

Aiming to review your bank statement at least once per statement period may help you spot accounting errors or fraudulent transactions early. The sooner you act to correct mistakes, the better your chances may be at recovering lost or stolen funds. A bank statement helps you review your account’s activities during a certain period. Doing so can help detect fraud, accounting errors and refresh your memory of the period’s activities. Banks never divulge your statements to unauthorized individuals or third parties.