What a Bank Statement Is and How to Read One
A bank statement is an official document your bank provides. It's typically issued monthly and summarizes all your account transactions for that period. We detail what you need to know to read one and avoid bank errors.
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By Alvin Yam, CFP
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Founder, Paraiba Wealth Management
Alvin Yam is a certified financial planner (CFP) with over 15 years of experience working with individuals and corporations. Before founding Paraiba Wealth Management, he was a director at HSBC and a financial consultant at Charles Schwab. Yam is MoneyGeek's expert consultant on wealth management and personal banking. Yam earned his bachelor's degree in political science from the University of California, San Diego and his Master of Business Administration from Loyola Marymount University.
Edited by Lukas VeluntaLukas Velunta is a MoneyGeek content editor with over 12 years of experience in economics, finance, management and consumer science content. He also works as a researcher and academic editor, preparing articles from non-native English speakers for peer review in Q1 journals.
AC
By Alvin Yam, CFP
AC
Founder, Paraiba Wealth Management
Alvin Yam is a certified financial planner (CFP) with over 15 years of experience working with individuals and corporations. Before founding Paraiba Wealth Management, he was a director at HSBC and a financial consultant at Charles Schwab. Yam is MoneyGeek's expert consultant on wealth management and personal banking. Yam earned his bachelor's degree in political science from the University of California, San Diego and his Master of Business Administration from Loyola Marymount University.
Edited by Lukas VeluntaLukas Velunta is a MoneyGeek content editor with over 12 years of experience in economics, finance, management and consumer science content. He also works as a researcher and academic editor, preparing articles from non-native English speakers for peer review in Q1 journals.
Updated: June 4, 2024
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Reading a bank statement allows you to track your spending, catch errors and make sure your records match what the bank has on file. Bank statements detail your transactions, balances and fees over a set period.
Understanding how to read a bank statement is part of financial awareness and security. Review your bank statements regularly — make it a habit so you make more informed financial decisions, boost your savings and take ownership of your overall financial health.
A bank statement is a detailed record of all transactions in a bank account over a specific interval, typically monthly.
A bank statement includes information including statement or cycle period, personal information, interest earned and all incoming and outgoing account activity.
Understanding how to read a bank statement helps you track expenses, monitor spending and identify potential fraudulent charges or errors.
A bank statement, also known as an account statement, is an official document provided by your bank that summarizes your account activity over a specific period. It serves as a record of all transactions, including deposits, withdrawals and fees.
Bank statements are usually issued by your bank on a regular basis, such as monthly or quarterly, depending on the type of account and the bank's policies. Most types of bank accounts — including checking, savings and credit card accounts — generate bank statements.
Paper statements are physical documents mailed to your address, whereas electronic bank statements are digital versions. Both options are safe ways to store details of your account history. But if you’re applying for a mortgage or loan, for example, having digital versions available can expedite the application process.
Some financial institutions offer electronic statements for free but may charge a fee for paper copies to discourage using extra resources.
SHOULD YOU GO PAPERLESS?Electronic bank statements have a number of advantages, including instant access and reduced clutter. They’re also more environmentally friendly.
If you're tech-savvy and don’t like clutter, electronic statements can be a better format for you. But if you require hard copy records or have limited internet access, paper statements may be more suitable.
With many of the best banks, getting your bank statement digitally is a straightforward process:
