Bank Statement

Detailed Explanation

Bank statements are official summaries provided by financial institutions, detailing the activity in a customer’s bank account over a set period, usually monthly. These statements list withdrawals, fees charged, and interest earned, along with account balances. This allows account holders to monitor their finances, identify any discrepancies, and manage their budgets more effectively.

Bank statements can be helpful for financial planning and are often required when applying for loans or mortgages as proof of income and financial stability. They can be delivered in paper form through the mail,  electronically via email, or via online banking platforms. Modern banking practices encourage electronic statements as part of efforts to reduce paper use and increase convenience for customers.

By reviewing your bank statements regularly, you can detect unauthorized transactions or errors early, giving you an opportunity to address them with your bank.

Example

Maria receives her monthly bank statement for her checking account, which shows her starting balance, total deposits of $2,000 from her paycheck, a withdrawal of $500 for rent, various small transactions for groceries and utilities, and an ending balance reflecting these activities.

Key Articles Related To Bank Statements

• Bank Account Number: What It Is And Where To Find It
• How To Write A Check (And Free Check-Writing Alternatives)

Related Terms

• Deposit: An amount of money placed or kept in a bank account.
• Interest: The cost of borrowing money, typically expressed as a percentage of the principal amount.
• Transaction: Any movement of money into or out of a bank account.
• Withdrawal: A sum of money removed from a bank account.

FAQs