What is a bank statement? Your ultimate guide (2024)

More than 95% of Americans have a bank account. But how many of us are consistent about checking monthly bank statements?

Recent data shows that 2.4 million people are victims of fraud in the United States each year, and all too often experts see cases where fraud could have been identified sooner if the victim had simply checked their statement.

Whether you get a paper statement in your mailbox or a notification on your banking app every month, it’s time to get in the habit of reviewing your bank statement regularly. Here’s an easy guide to follow.

What is a bank statement?

A bank statement is a summary of your account activities over a specific period, often monthly, from your financial institution. Its primary purpose is to update you on the status of your account, and communicate important information such as deposits, withdrawals or interest earnings.

Bank statements are usually delivered electronically or through the mail, with many institutions shifting toward digital statements in recent years.

How to get a bank statement

Banks are required to provide monthly bank statements for most checking, savings and credit card accounts. That means you probably don’t have to do anything to get a bank statement: You should be receiving a paper or electronic statement automatically at the end of each billing cycle.

However, if you aren’t getting statements or aren’t sure how to use online banking to view electronic statements, contact your bank. If you need a replacement paper copy, just ask.

Financial institutions are required to keep copies of your account records for five years, so you shouldn’t have any problems getting one. Just keep in mind that some banks may charge a nominal fee to print extra copies of paper statements.

Different types of bank statements

Depending on how you organize your finances, you may receive several different statements each month. Making a habit of reviewing all of them is a good idea.

Here are a few examples of statements you might get:

• Checking account statement
• Savings account statement
• Credit card statement
• Investment account statement
• Business account statement
• Mortgage statement
• Loan statement

Digital vs. paper bank statements

It wasn’t too long ago that most people received all of their monthly bank statements by mail. These days it’s much more common for banks to deliver statements electronically, often by posting them to a secure, password-protected portal.

The vast majority of banks not only offer e-statements but also incentivize customers to enroll in online banking with bonus rates and discounted fees. Online banks may charge a fee for paper statements or not provide them at all.

“Banks are promoting e-statements because it’s arguably safer,” said Wenni Wu, chief growth officer at Piermont Bank. “Most logins for online banking will require either a multifactor authenticator or some security questions, and online banking and mobile banking apps are often updated with the most recent security patches. Banks in recent years have spent a lot of money on cybersecurity.”

How to read a bank statement

You probably noticed that your bank statement contains a lot of information. The contents of your statement can vary depending on your bank, but here’s a closer look at what your statement might include.

Statement period: Your statement will cover a date range, with statement dates marked. Statement periods can differ by bank and account type, which means that date ranges can vary between accounts.

Bank information: You should see the name of your bank, its mailing address and a phone number for questions or concerns.

Personal information: Your statement should include your name, address and phone number. Check to be sure this information is accurate.

Account number: That’s the unique identifying number associated with your account, usually between eight and 12 digits.

Starting and ending balance: This shows you how much money you had coming in and out during the statement period. You can use it to identify spending trends and adjust your budget, if necessary. Some banks will also provide an average daily balance for the statement period.

Transaction history: This is a detailed record of every transaction posted to your account during the statement period. Transactions are often listed in chronological order.

Fees and interest earnings: If applicable, your statement will show any interest earned or fees charged by your bank during the statement period. A variety of fees may be deducted from your account, and those should always be reflected on your statement. Fees you might see on your bank statement include monthly maintenance, ATM, overdraft, returned check, stop payment and paper statement fees.

To ask questions or dispute a fee, call the phone number listed on your bank statement as soon as possible.

The importance of regularly checking your bank statement

The top reason to check your bank statement every month is simple: The sooner you spot fraudulent charges and errors, the sooner you can address them.

According to U.S. law, you only have 60 calendar days from when your bank sends you a statement to report any unauthorized activity. If you fall behind on checking your statements, you could end up being liable for any funds lost before this period.

Let’s say you cancel a monthly subscription, but the merchant continues to charge your account anyway. If you take four months to notice the erroneous charge, you may only be entitled to a partial refund.

When you get your statement each month, review the following:

• Account balance: Make sure it lines up with your current account standing.
• Transaction history: Confirm that all dates, merchants and transaction amounts are correct.
• Bank fees: Be sure you understand any fees your bank is charging you. If you have a question about a fee or think you were charged in error, call your bank.

Bank statements and identity theft

Identity theft is a major issue in the United States, with 9% of people over the age of 16 reporting some form of identity theft every year. Checking your bank statement every month is of the utmost importance when it comes to preventing losses due to identity theft.

In addition to checking your statements monthly, the CFPB recommends requesting a free credit report from each of the three credit bureaus once per year. You should review your credit report for other unauthorized activity such as unfamiliar accounts or discrepancies in balances.

While bank statements are an important tool in catching identity theft early, keep in mind that thieves can also use the information they contain to commit fraud. If you receive paper statements, be mindful of how you dispose of them; it’s not unheard of for thieves to rummage through garbage in search of useful personal details.

If you don’t own a paper shredder, look around for community shredding days in your area. Many local governments organize regular events allowing residents to shred sensitive documents for free.

How long should you keep bank statements?

The advent of online banking means your full history of electronic banking statements is always a click of a button away. But if you’re the type of person who prefers to keep everything in a filing cabinet, how long should you hang on to the hard copies?

Keep your bank statements for one year. When it’s time to get rid of paper statements, just remember to shred them securely instead of tossing them in the trash.