What Is A Bank Statement? All You Need To Know

what is a bank statement
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Every month, banks and financial institutions generate bank statements to provide consumers with records of their overall financials. Individuals who have a checking or savings account with a bank can get these statements online by going to the bank’s website or logging into their net banking portal. There are various good reasons to monitor your bank statements weekly, but the most important reason clients check their bank accounts is to prevent fraudulent activity and avoid paying high banking costs for account maintenance. In this post, we will go over what bank statements contain, as well as their significance, benefits, and requirements:

What Is a Bank Statement?

A bank statement summarizes all of the account’s monthly transactions and is normally mailed or emailed to the account holder every month. Bank statements include information about checking and savings accounts, such as account numbers and a full summary of deposits and withdrawals. 

How a Bank Statement Works

A bank sends an account holder a bank statement that details the account’s activity. It enables the account holder to view all transactions processed, often in chronological order.

Most banks provide monthly or quarterly statements to account holders. Unless you completed at least one electronic financial transfer that month, banks and credit unions are not required to give you a monthly statement. Examples of electric fund transfers include:

  • ATM and debit card transactions.
  • Payments made through online bill payment
  • Direct deposits
  • Any recurring automatic withdrawal payments

Your bank can normally update the cycle date of your bank account statement at any time. Banks must maintain records of each deposit of $100 or more for at least five years.

How Do Bank Statements Get Made?

Your bank keeps a record of every transaction you make. These records are then assembled to form a bank statement. Statements typically cover a one-month period and include your incoming salaries or payments, any transfers or deposits, and cash withdrawals. They also show a starting and ending balance, so you can see where your money stands at the end of the month in comparison to the beginning.

What Information Can Be Found On a Bank Statement?

At the top of the statement, you’ll normally discover your account number, the bank branch provider, your full name and address, as well as the statement’s start and finish dates. Following that, you’ll see the complete list of transactions completed within the timeframe of the statement—basically, all incoming and outgoing payments. Each transaction will include the date it was processed as well as some information about who the payment was made to or from.

How to Obtain Access to Your Bank Statements

Historically, bank statements were mailed to customers, which occasionally resulted in a minor service cost. With most banks now having a digital presence, electronic statements are becoming more popular.

E-statements are a handy method to view your account activity without the hassle of paper statements, and your financial information is safely preserved. Some banks allow you to sign up for emails with your statements attached, or you may view them directly through your online account or smartphone app.

Types Of A Bank Statement

Many banks allow account users to receive paper or electronic statements, typically via email.

Electronic Bank Statements

Account holders can view statements online for downloading or printing using an electronic statement, often known as an e-statement. Many e-statement recipients still print their statements at home, preferring to preserve a permanent record.

Some banks provide customer statements as an attachment through email. Bank automated teller machines (ATMs) may be able to produce a transaction history, which is a summarized form of a bank statement. 

Receiving digital statements is usually free, and opting in can occasionally save you money on monthly account maintenance fees.

Paper Bank Statements

Even with electronic statements’ ease, value, and accessibility, paper statements aren’t going away anytime soon. Receiving paper bank statements, on the other hand, may incur a fee due to the work and supplies required to print and distribute the statement.

For this service, banks charge an average of $3 for every statement, which can add up to $36 per year if sent monthly. Credit unions may charge less, with fees as low as $1.50 on average.

For adults above a specific age, such as 65, or minors under a certain age, paper statement fees may be waived.

The Advantages of a Bank Statement 

Bank statements are an excellent tool for account holders to use in order to maintain track of their accounts, uncover problems, and identify spending trends.

You should check your bank accounts on a regular basis—daily, weekly, or monthly—to ensure that your records match those of the bank. Overdraft costs, mistakes, and fraud are all reduced as a result.

While reconciling their bank account with their bank statement, account holders might look for discrepancies. Discrepancies must be notified to the bank as soon as possible. Account holders may have as few as 30 days to challenge inaccuracies, but limits vary depending on the account and state. Monthly statements should be kept for at least a year.

Bank Statement Requirements 

A bank statement contains information about:

  • The address and phone number of the bank
  • Account specifics
  • The date of the statement
  • Total number of days in the statement period, or the beginning and end dates of the period
  • Account balances at the start and end

Details of each transaction that occurred in the bank account throughout the time, including the amount, date, and payee, will also be supplied, such as:

  • Deposits
  • Withdrawals
  • Cashed checks
  • Any fees or service charges that have been deducted from the account
  • Annual percentage yield (APY) on interest-earning accounts.
  • The amount of money earned in interest during the statement period

For example, a bank statement for the period September 1 through September 30 may show a non-interest-bearing checking account with:

  • A starting balance of $1,050
  • Deposits totaled $3,000
  • $1,950 in total withdrawals
  • $0 in service fees
  • A final balance of $2,100

What Is An Official Bank Statement?

Every month, the bank sends an official bank statement to the account holder, detailing all of the account’s transactions for the month. Bank statements include information about bank accounts, such as account numbers and a full summary of deposits and withdrawals. 

How Do I Obtain a Bank Statement?

You may usually find your most recent bank statements on the website of your financial institution. Alternatively, you can have a monthly paper statement delivered to your home.

What Is the Difference Between a Bank Statement and a Transaction Record?

A transaction history displays all bank account transactions over a specified time period. A bank statement typically only covers one month of transactions and may exclude current or pending transactions.

Can Someone Look at My Bank Statement?

No one can check your bank statement unless you give them permission. Banks do not distribute information about your bank statement to unknown third parties without your agreement unless you provide your account number.

How to Download A Bank Statement PDF

It makes no difference who you bank with; if you use online banking, you can get PDF statements. While each bank employs somewhat different terminology, the procedure is essentially the same.

You must ensure that you have the correct account, the correct date range, and all transactions included. Here’s what you should do:

  • Go to your bank’s website.
  • Log in to your Online Banking/Digital Banking/Internet Banking/eBanking, etc. account.
  • Select’statements,’ ‘e-documents,’ or ‘download.’
  • Check that you’ve picked the correct account.
  • Select a statement (or a time range).
  • Select the.pdf file format.
  • *Repeat these steps to download multiple statements * Instead of a ‘download’ option, some banks need you to select ‘print’ and then ‘Save as.PDF’.

Are Bank Statements For Debit Cards?

If you made at least one electronic funds transfer during the statement period, your bank or credit union must give you a statement. ATM and debit card transactions, online bill payments, direct deposits, and recurring payments from your account are all examples of electronic funds transfers.

How Does a Bank Account Debit Work?

When you utilize funds from your bank account to buy something or pay someone, you incur a debit. When you debit your bank account, money is taken out of it. A credit is the inverse of a debit, in which money is added to your account.

A debit is when money is automatically taken out of your account to pay a bill, when you write a check and it is cashed, or when you use a debit card, which allows you to take money from your bank account and use it to purchase goods and services, similar to an electronic check. Learn more about what happens when a bank account is debited.

How A Debit Card Works

When you use your debit card to make a purchase, your bank is electronically notified of the transaction. When you swipe your card or enter it on a webpage to make an online transaction, this happens instantly.

Data is also transferred to the card-processing network, such as Visa or Mastercard, which verifies the transaction data and ensures that the debit card has not been reported stolen or lost.

The processor also confirms whether or not funds are accessible in the cardholder’s account and whether or not the transaction was accepted. The card number, transaction amount, and date are all included in the transferred data. The information will also include the seller’s name and merchant category code, or MCC, as well as any rewards program details.

Because a transaction usually takes at least 24 hours to complete, the bank places a hold on your account for the transaction amount. This action keeps you from spending the money. The hold should ideally stay long enough to earmark the funds until the transaction is completed.

Following that, the store from which you made your purchase sends the transaction details to your bank over the network. If everything checks out, your bank electronically transfers the purchase price to the retailer, thereby withdrawing the funds from your account. Essentially, the bank debits your account for the purchase amount.

Is a Bank Statement Proof of a Bank Account?

A proof of funds document is one that demonstrates an individual’s or entity’s ability to pay for a certain transaction. Proof of funds is typically provided by a bank statement, security statement, or custody statement. A big transaction, such as the purchase of a home, usually necessitates the production of proof of money.

Can a Bank Give me a Bank Statement?

Regardless, most banks have the opportunity to request a hardcopy statement via their online banking account. This request is most likely located in the same location as your digital statements. It may be a different option under the same “Statement” title, or a button on the page that displays your statements.

Does Everyone Have A Bank Statement?

Your bank is required to furnish you with a bank statement if your account has made at least one electronic fund transfer (ETF), such as an ATM transaction, debit card usage, or direct deposit, within a given month. This could be a paper statement mailed to you or an e-statement issued via email.

How Long Does A Bank Statement Take?

If you purchase your current eStatement online before 3:30 pm on a working day, it will be prepared overnight and available for download on the Upgraded Bank of Ireland App or 365 online the following day. Paper statements will be mailed to the statement address within 3-5 business days.

In Conclusion,

Bank statements enable you to confirm that transactions and deposits correspond to your expectations and record-keeping. When you review your bank statements, you may discover that you’re paying for subscriptions you don’t need or want, or that you’ve been charged twice for the same transaction.

You can also look at how much interest you’re generating in your bank account as a percentage and dollar amount to see whether you should switch to a higher-earning checking or savings account. However, keep in mind that expenses for sent paper statements can pile up over the course of the year.

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