What is a Bank Statement?

Image Credit: Sergio Ortega

A:

A bank statement (pictured above) is a document that lists a bank account holder’s deposits and withdrawals. It commonly covers a specific period such as 30 days. A bank statement is typically mailed to the account holder monthly. Alternatively, many banks offer the account holder the ability to access their account transaction history online to view or print at any time.

In addition to the list of deposits and withdrawals, a bank statement will also commonly include the following:

  • Fees:  overdraft fees, service charges, ATM fees, etc.
  • Earned Interest: the amount the bank pays you to hold onto your money
  • Balances: opening and closing balances of the account for the transaction period

The account holder should not assume that the information on the bank statement is always accurate. People often keep separate records of their deposits and withdrawals. They compare their own records to the bank statements to see if there are any discrepancies. Any errors found on the bank statement should be addressed with the bank in a timely manner.