Debt Management

What Is A Bank Statement And How To Read It?

by Patrick

A bank statement is a collection of your important banking information and is a document that is issued to the account holder every month. In this invoice, one month of your account is specified and you need to check it every month. Many people do not pay attention to this important issue and only check it when they have a problem. You can control costs by checking your bill monthly.

What Does The Financial Statement Show?

  • Account number
  • Your transaction history and the impact of transactions on your account
  • A detailed list of deposits
  • Financial transactions and withdrawals
  • Accrued interest and credits received
  • Account balance
  • Start and end of the course

You Can Understand Many Of These Issues By Looking At A Bank Statement:

  • Know your financial habits and change them if necessary
  • Find your bank account problems
  • This bill can prove your eligibility for a loan
  • A financial statement is required to file for divorce and other problems that require proof of income
  • Using it, you can create an accurate budget for yourself
  • You can use it to check your financial records and find out about mistakes and scams.

Differences Between Online And Paper Bank Bills:

In the past, bank statements were sent on paper by post. This way, your bills could be lost and you could not access the old bills. But today most banks provide these bills online to bank account holders.

This way you can see your bill without any problems and wherever you have access to the internet.

Save on paper by using online invoices. Also, your information is stored in the banking system for several years. These invoices are safer and protect your personal information.

Bank statements are usually submitted online by banks. Also, many of them print invoices on a piece of paper and provide them to you for free, and some charge a fee for the print. A property bill is not necessarily a financial transaction from the beginning to the end of the month.

Your bank account may cover one month to the third of the following month from the 4th day. Most banks keep this statement for at least 5 months so that you can access older accounts if necessary.

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How Is A Bank Statement Read?

If you do not have information about reading the bill, it may seem difficult to read at first, but by reading the guide below, you can easily read it. Understanding how to read your bank statement correctly can help you better manage your finances and avoid mistakes such as overdrafts and extra costs. You should check your bank statement every month because only then can you be aware of your spending records with the bank.

First, we will introduce the main sections of the bank statement and then we will review the other sections:

  • Personal Information:

In this part of your bill the full name and permanent address and usually the information that you gave when setting up the account. If your account has changed after opening an account, let your bank know so they can apply the changes.

  • Account Information:

This section contains information such as account type, your account number as well as the billing period.

  • Billing Summary:

In this part of the bank statement, the following information is shown briefly:

  • Account balance at the end of the period
  • Total impressions
  • Total deposits
  • Service fee
  • Remaining at the end of the course
  • Account balance at the beginning of the period
  • Transaction Summary:

In this section, you will find details of all your expenses by date. The oldest payments are usually at the top and the newest ones are at the bottom.

Description: Where / with whom the transaction was made

Date: Date of transaction

Withdrawal: Indicates that money has been withdrawn or spent

Deposit: Indicates whether money has been credited

  • Starting balance:

This section shows the amount you had in your account at the beginning of the period. That is, it shows your total balance without any deposit or withdrawal.

  • Ending balance:

The ending balance is the amount that is in your account after the end of your monthly billing period. If you save more than you spend, the ending balance will be more than the starting balance.

  • Deposits:

This section shows the installments of personal funds to your account. Deposits include direct deposits from your employer, cash checks, money transfers, and the money you transfer from PayPal or Venmo, and other credits.

  • Withdrawals:

In this section you can see the number of withdrawals you have from your account; both online transfers and cash card transactions

  • Interest:

Some banks pay interest on their accounts. The bank statement also shows the interest rate on your account. If you have several savings accounts, the interest of each one will be displayed separately as well as the total interest in this section.

  • Fees:

In this part of the bank statement, the expenses paid are displayed accurately. These costs can include overdrafts, return checks, ATM withdrawals, and monthly maintenance fees. Also, if you have used your credit card when traveling abroad, the cost of foreign transactions can be seen in this section.

  • Daily balance detail:

This section shows your account details every day. This section can be useful for reviewing financial habits.

  • Overdraft protection:

Your bank account can show it if you have an overdraft from your account.

  • Statement period:

This section displays the transaction history.

Conclusion

Banks issue bank statements to maintain and use their records. A bank statement is an overview of your financial activities and is a document provided by the bank to account holders. You can get this invoice on paper or online. With this invoice, you can access deposits, transfers, and withdrawals.

Bank statements are not complicated, but they do contain a lot of information that can help you. Although the accounts of different banks may be different, most of them contain the following information:

  • Starting balance
  • Ending balance
  • Deposits
  • Withdrawals
  • Interest
  • Fees
  • Daily balance detail
  • Overdraft protection
  • Statement period

In this article, we talked about bank statements and the information contained in them. We hope you find this article useful.

“If you have any feedback about what is a bank statement and how to it that you have tried out or any questions about the ones that I have recommended, please leave your comments below!”

NB: The purpose of this website is to provide a general understanding of personal finance, basic financial concepts, and information. It’s not intended to advise on tax, insurance, investment, or any product and service. Since each of us has our own unique situation, you should have all the appropriate information to understand and make the right decision to fit with your needs and your financial goals. I hope that you will succeed in building your financial future.