Understanding Your Bank Statement: A Comprehensive Overview

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What is a bank statement?
Components of a bank statement
How to read a bank statement
Role in financial management
How to use bank statements effectively
How to get a bank statement
FAQs

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A bank statement is a document that shows your transactions over a period of time.
Most banks provide free bank statements online or mail paper statements to your home.
You'll need to provide a bank statement when you apply for a loan, file taxes, or file for divorce.

Bank statements are useful for lenders, divorce attorneys, credit bureaus, and landlords, but they can also be helpful for personal financial planning.

Here's everything you need to know about what a bank statement is and how to get one.

What is a bank statement?

A bank statement is a document that summarizes your account activity. It often only has information for a specific period of time, called a "statement period." Typically a statement is one month long, but sometimes it could be once per quarter.

A one-month statement period doesn't necessarily last from the first to last day of a month. For example, your bank could track your account from the fifth day of a month to the fourth day of the following month.

Components of a bank statement

You may have a bank statement for a single account. But if you have more than one checking or savings account with a bank, it may include information for all your accounts in one statement.

At the top of a bank statement, you'll generally see the statement period dates and bank information. The rest of the statement is your transaction history, which includes withdrawals, deposits, transfers, and common bank fees you paid.

How to read a bank statement

You can use the following key terms to better understand your bank statement.

Account name. This could simply be "savings" or "checking." If you bank with an institution that lets you assign nicknames to your accounts, like "emergency fund" or "travel account," you'll see those names here.
Account number. For security reasons, each number will probably show up as an X, except for the last four digits. This way no one can steal your account information, but seeing the last four digits helps you know which account you're looking at.
Beginning balance. This is how much was in an account the day your statement period began. For example, if the bank statement is for financial activity from January 5 to February 4, the beginning balance is how much was in your account on January 5.
Ending balance. This is the amount in an account on the last day of your statement balance.
Total account balances. If you receive one statement for multiple bank accounts, you'll see the total amount in all of your accounts combined. There will be one number for the balance at the beginning of your statement period and one for the balance at the end of your statement period.

Individual account information

Next, you can see the details for each individual account:

Bank account number.
Product. You'll see if this is a checking, savings, or another type of account.
Open date. This is the date you opened the account.
Account ownership. You'll see whether this is an individual bank account or joint account you share with someone else.
Summary of deposits and withdrawals. Here you'll see the beginning balance in the statement period, the amount you received in deposits, and the amount you spent. You'll also see any interest you earned and any ATM fees you paid. Finally, you'll see the ending statement balance.
Other account information. You'll likely see the number of days in the statement period, the interest rate earned (if any), the amount of interest you've earned so far this calendar year, and your average daily balance for the statement period.
Overdraft information. If you paid any overdraft fees during the statement period, you'll see those fees here. If your bank charges a fee each time you tap into its overdraft protection program, then you'll see that charge here, too.

Statement activity

You can see each deposit and withdrawal you made during the statement period, probably starting with the first day of the statement period and moving forward. Here's the information you'll see for each transaction:

Date of transaction.
Description. You might see the name of a restaurant or gas station where you swipe your debit card, or the name of your employer if you have direct deposit. This will give you some context for the transaction.
Credits. This is the amount added to your account in a single transaction.
Debits. This is the amount withdrawn from your account in a single transaction.
Balance. This is how much was left in your account after an individual deposit or withdrawal.

Additional information at the end of the bank statement

If you look at the last page of your bank statement, you'll likely see some or all of the following information:

Regulatory requirement. The bank explains how to take action if you see mistakes on your bank statement.
Section for balancing your checkbook. Use this space if you balance your checkbook every month. If you receive a bank statement for a period ending February 4, but you don't look at the document until February 6, you may have spent or received money in the two days since the period ended. Add or withdraw that amount from your ending balance to make sure it aligns with your balanced checkbook.

The role of bank statements in financial management

You may choose to use your bank statements to take some of the following actions:

Track your spending and savings habits. By looking at your statement balances and the itemized list of deposits and withdrawals, you can see how much you're spending versus saving. This may help you create a budget or adjust your savings contributions. You may even see you're enrolled in automatic payments for something you had forgotten about, like a streaming service or gym membership.
Keep an eye out for mistakes or fraud. Checking your monthly statements to make sure every withdrawal is above board can be a good safety measure. You may see the bank has made a mistake, or you could even realize someone else has been using your debit card information to make purchases, and report errors found in bank statements.
Keep records. You may choose to save all your bank statements digitally or receive paper copies. You can hold onto these statements so that if you need access to one from years ago, you have it on file even if a bank no longer does.

How to use bank statements effectively

It's likely you'll need to access your bank statement every so often — mainly if you're applying for a service that requires proof of income. Here are some of the most common times you'll need to show a bank statement:

Applying for a loan. Your approval and interest rate for a loan — including a mortgage, car loan, personal loan, or private student loan — partially depend on your income. Providing a bank statement is an easy way to verify employment and income.
Refinancing your home. Even though you've already taken out a mortgage, you'll still need to show a bank statement when you refinance the home.
Renting a place to live. Most landlords want evidence you earn a multiple of the amount of rent before they accept your application.
Filing your taxes. You may need a bank statement when you file your taxes if you plan to write off certain expenses.
Disputing a credit report. If you check your credit score and see you've been incorrectly penalized for something like a missed payment, you can call to dispute an error. You may need to show a bank statement to back up your claim that you made a payment.
Qualifying for Medicaid. Medicaid is an income-based program, so you need proof income to be eligible.
Filing for divorce. You'll need to provide documentation of individual and shared assets when you get divorced, including bank accounts.

How to get a bank statement

Log into your account online

Most banks will let you see your bank statement online for free. Log into your account on a computer or phone.

Click on your bank account name, then look at the menu. You should see an option along the lines of "statements" or "statements and tax forms." Click on this option, and you'll see a list of statements by month or quarter.

When you click on the time frame you want to view, your device will probably automatically download the statement. You can view the PDF or print the statement if needed.

Receive statements in the mail

Some banks automatically mail paper bank statements to your home, while others give you the option to sign up for paper statements or will send one upon request. This can be a good option if you don't have a computer, smartphone, printer, or reliable internet access.

Certain institutions will charge a few dollars for sending you a paper statement, so you may want to confirm any fees before signing up for paper statements.

Note: Most banks will keep your statements on file for at least five years, sometimes longer.

Bank statement FAQs

What exactly is a bank statement? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

A bank statement is a log of your bank account activity for a certain timeframe, usually 30 days. It also lets you know what bank fees have been paid and your interest rate, if any.

Why is it important to review my bank statement regularly? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Reviewing your bank statement can help you track your spending, identify potential fraud, and keep your financial records up to date.

What's the difference between digital and paper bank statements? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Digital bank statements can be accessed via your online account and downloaded as a PDF. One of the benefits of digital banking statements is that they are free. Paper statements are mailed to your home address and often cost an additional fee.

How can I use my bank statement for budgeting? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

By viewing your monthly deposits and withdrawals, you can analyze transaction history for budgeting. You can identify spending patterns and ensure your balance stays in the positive.

What should I do if I find an error on my bank statement? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Your bank should be notified immediately if you find an error on your bank statement, per the instructions provided at the end of your statement.

Laura Grace Tarpley_headshot

Laura Grace Tarpley, CEPF Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors. She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.