Accounting Concepts and Practices

What Information Do Bank Statements Include?

Understand the essential details on your bank statement for effective financial tracking and comprehensive account oversight.

Bank statements serve as records of financial activities within a bank account over a specific period, typically a month. They offer individuals a clear overview to track transactions, reconcile accounts, and identify errors or unauthorized activities.

Account and Statement Identification

At the top of a bank statement, identifying information links the document to a specific account and timeframe. This includes the account holder’s full name and mailing address. The bank’s name, logo, and contact information, such as a customer service phone number, are also prominently displayed.

The statement specifies the unique account number(s) for the transactions. The statement period, indicating the precise start and end dates (e.g., “January 1 to January 31”), is also present. This period helps understanding the timeframe covered and reconciling records.

Summary of Account Activity

A bank statement begins with a summary section, providing a concise overview of the account’s financial flow. This section details the opening balance, the amount of money in the account at the beginning of the period. It also shows the total deposits made into the account during that time.

The summary includes total withdrawals or debits, encompassing money taken out through various means like checks, ATM withdrawals, debit card transactions, and electronic payments. The closing balance, representing the account’s balance after all transactions, is also provided.

Detailed Transaction History

The detailed transaction history lists every financial movement in and out of the account in chronological order. Each entry includes the date of the transaction, a description of the activity, and the amount, clearly indicating whether it was a debit (money out) or a credit (money in).

Deposits can appear in various forms, such as direct deposits from employers or government benefits, cash deposits made at a bank branch or ATM, or check deposits. Incoming electronic transfers, identified with abbreviations like “ACH Credit” or service names like Zelle or Venmo, are also itemized. These entries help verify income and other credits.

Withdrawals and debits encompass a wide range of outgoing transactions. These include cash withdrawals from ATMs, purchases made with a debit card, and checks that have cleared the bank. Electronic payments, such as automated bill payments (ACH debits) for utilities or subscriptions, and transfers to other accounts, are also detailed. Each debit entry provides a record of money spent or moved, assisting in expense tracking and budgeting.

Bank fees are itemized on statements, detailing charges incurred during the period. Common fees include monthly maintenance fees. Overdraft fees are incurred when a transaction exceeds the available balance. ATM fees and foreign transaction fees for international purchases are also listed.

For accounts that earn interest, such as savings accounts or certain checking accounts, the statement shows the interest earned. This entry appears as a credit, indicating the amount of money added to the account due to accrued interest.

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