Bank statement

Bank statement is a periodic summary provided by a bank to its customers. It details the transactions that have occurred in a specific bank account over a set period, typically monthly.

Overview

A bank statement is a record of all transactions for a bank account over a specified period, typically a month. The statement includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period.

Components of a Bank Statement

A bank statement typically includes the following components:

• Account Information: This includes the account number, the name of the account holder, and the statement period.

• Beginning Balance: This is the amount of money in the account at the start of the statement period.

• Deposits and Credits: These are all the money added to the account during the statement period.

• Withdrawals and Debits: These are all the money taken out of the account during the statement period, including checks written, ATM withdrawals, and debit card transactions.

• Ending Balance: This is the amount of money in the account at the end of the statement period.

Importance of Bank Statements

Bank statements are important for several reasons:

• Record Keeping: They provide a record of all transactions, making it easier to track income and expenses.

• Reconciliation: They can be used to reconcile the account holder's records with the bank's records.

• Fraud Detection: They can help detect any unauthorized transactions or fraud.

• Tax Preparation: They can be used to prepare tax returns.

Electronic Statements

Many banks now offer electronic statements, or e-statements, which are essentially the same as paper statements but are delivered electronically via email or through the bank's website.

See Also

• Bank
• Bank account
• E-statement
• Reconciliation (accounting)