Skip to content
SuperMoney logo
SuperMoney logo

Bank Statements: What They Are, Why They Matter & What You Need to Know

Last updated 04/09/2024 by

SuperMoney Team

Edited by

Fact checked by

Summary:
Bank statements are important documents that show the details of all the transactions in your bank account over a given period. Reviewing your bank statement regularly can help you identify errors and unauthorized transactions, track your spending and budgeting, and monitor your account balances and fees.

What is a Bank Statement?

A bank statement is a document that shows the details of all the transactions in your bank account over a given period. Typically, this period is one month, but it can vary depending on the bank. Bank statements are generated automatically by the bank and can be accessed online or mailed to you in paper form.
Bank statements typically include the following information:
  • Account summary: A summary of your account’s balance at the beginning and end of the statement period.
  • Transaction history: A list of all the deposits, withdrawals, and other transactions that occurred during the statement period.
  • Fees: Any fees charged by the bank during the statement period, such as monthly maintenance fees or ATM fees.
  • Interest earned: Any interest earned on your account balance during the statement period.

Benefits of Reviewing Bank Statements

Reviewing your bank statement regularly is important for several reasons. Here are some of the key benefits:
  • Identify errors and unauthorized transactions: By reviewing your bank statement, you can make sure that all the transactions are legitimate and accurate. If you notice any errors or unauthorized transactions, you can notify your bank immediately to have them corrected.
  • Track spending and budgeting: By reviewing your transaction history, you can see where your money is going and make adjustments to your budget as needed.
  • Monitor account balances and fees: By reviewing your account summary and fees, you can make sure that you’re not being charged any unnecessary fees and that you have enough money in your account to cover any upcoming expenses.

Requirements for Obtaining a Bank Statement

To obtain a bank statement, you can typically request one from your bank. Most banks provide statements online, but you can also request a paper statement to be mailed to you. The frequency of bank statements varies by bank, but they are typically generated on a monthly basis.

How to Read a Bank Statement

Reading a bank statement can seem overwhelming at first, but it’s actually quite simple once you know what to look for. Here are some tips for understanding the different sections of a bank statement:
  • Account summary: This section provides a summary of your account balance at the beginning and end of the statement period. It also includes any deposits or withdrawals made during the period.
  • Transaction history: This section lists all the transactions that occurred during the statement period, including deposits, withdrawals, and other transactions. Each transaction is typically labeled with a code or abbreviation, which may be confusing at first, but you can find a key or legend to help you understand the codes.
  • Fees: This section lists any fees charged by the bank during the statement period, such as monthly maintenance fees or ATM fees. Make sure to review these fees to ensure that they are accurate and reasonable.
  • Interest earned: This section shows any interest earned on your account balance during the statement period. If you have a savings account or other interest-bearing account, this section can help you track your earnings.

FAQs

How often are bank statements generated?

The frequency of bank statements varies by bank, but they are typically generated on a monthly basis.

Can I get a paper statement if I don’t have online access to my bank account?

Yes, you can request a paper statement to be mailed to you.

What should I do if I notice an error or unauthorized transaction on my bank statement?

If you notice any errors or unauthorized transactions, you should notify your bank immediately to have them corrected.

Key takeaways

  • A bank statement is a document that shows the details of all the transactions in your bank account over a given period.
  • Reviewing your bank statement regularly is important to identify errors and unauthorized transactions, track your spending and budgeting, and monitor your account balances and fees.
  • To obtain a bank statement, you can typically request one from your bank, and most banks provide statements online or through paper mail.
  • Reading a bank statement involves understanding the different sections, such as the account summary, transaction history, fees, and interest earned.

You might also like