Bank Statement

What is a Bank Statement?

A Bank statement, also called as an Account Statement, is a document that a bank sends to the account owner towards the end of every month. This document summarizes all of the transactions that took place during that month.

Generally, if you want the statement for a specific period of time, you can request the same from the bank as well. A typical bank statement comprises bank account information like account number, withdrawals, deposits, and more.

Types of Statement

Several banks provide two different options in terms of receiving bank statement – paper and paperless. The former gets delivered to the home via post; the latter is sent via email. Apart from that, there are some such banks that provide statements as an attachment. And then, some also offer an option to print bank statement through ATMs.

Content of a Bank Statement

Basically, this statement provides an overall view of the account. It summarizes the following pointers:

• The balance in the account
• History of deposits in the form of Income, online transfers, cash deposits, and more
• History of withdrawals from the account
• Interest earned (if any)
• Penalties and fees charged against the account
• The Format of Bank Statement:
• Usually, this statement is made of three parts:
• Details of the account holder
• Details of the account
• History of transaction

The top of the account statement covers the details of the account holder, including name, residential address, and registered contact number. Below this section, details of the account get covered that summarize the account number, type of account, and other relevant details.

In the end, the statement shows the transaction details along with the date, specific amount and the details of the payer or the payee.

Advantages of a Bank Statement

• During the settlement of the account with the statement, it becomes easier to look out for discrepancies. Upon noticing any, you must report the same as soon as possible.
• It is one great tool to help keep track of money. Right from finances to recognizing spending habits becomes extremely easier.
• Comparing the bank account with the statement gives a clear picture of mismatches that may occur from the bank’s side, whether in the form of errors or overdraft fees.