How to Do a Bank Statement and What to Look For

A bank statement provides a summary of all financial activities within an account over a specific period, typically a month. This document serves as an official record of money flowing into and out of your account, offering transparency into your transactions. Regularly reviewing a bank statement is a fundamental practice for financial management, allowing individuals to track spending, identify errors, and detect unauthorized activity.

Understanding the Components of a Bank Statement

A bank statement details the account holder’s name, address, and account number, sometimes partially obscured for security. It indicates the statement period, showing the start and end dates for transactions. The statement also presents the opening balance (the amount of money in the account at the beginning of the period) and the closing balance (the final amount at the end).

All completed transactions during the period are listed, usually in chronological order. This includes deposits (credits like paychecks or cash deposits) and withdrawals (debits such as ATM transactions, debit card purchases, cleared checks, and electronic fund transfers). Any fees incurred, like monthly service charges or overdraft fees, along with any interest earned, are also itemized. Debit signifies money leaving the account, credit means money entering, and balance refers to the current total funds.

Accessing Your Bank Statement

Accessing your bank statement can be done through several methods. Online banking portals are a common way; you can log in, navigate to a section typically labeled “Statements” or “Documents,” and then view or download your statements, often available for several years. Banks typically send paper statements via mail unless you opt for paperless delivery, a preference that can usually be managed within your online banking settings.

If you require a physical copy or need to access older statements not available online, you can request one in person at a bank branch. Some banks may charge a fee for printed copies, often ranging from $1 to $5 per statement, especially for older records. Many banks also offer the option to request a statement over the phone, with the document then mailed to your address.

Reviewing Your Bank Statement

Once you have accessed your bank statement, a thorough review is important for maintaining financial health and security. Begin by verifying your personal details and confirming that the statement period matches your expectations. Next, compare the opening balance to the closing balance of your previous statement, and cross-reference the current closing balance with your personal financial records, such as a checkbook register or budgeting application.

Systematically examine each transaction listed, matching deposits against expected income and withdrawals against your spending records, receipts, or online transaction history. It is important to identify any unfamiliar transactions, incorrect amounts, or unexpected fees immediately. If you discover unauthorized electronic fund transfers, federal law (Electronic Fund Transfer Act) requires you to report them to your bank within 60 days of the statement date to limit your liability. For other types of errors, such as unauthorized checks or alterations, the Uniform Commercial Code requires customers to promptly notify the bank. Prompt reporting is important for your protection, as delays can limit your ability to dispute errors or recover funds.