top of page
  • Writer's pictureSANJANA JEVRANI

What Is A Bank Statement: Types & Its Benefits


bank statement

A Bank statement is a critical financial document that provides a detailed summary of transactions, balances, and other pertinent information related to a bank account over a specific period.


What is a bank statement?


Bank statements comprehensively record all account activities, including deposits, withdrawals, transfers, checks cleared, and fees incurred. They offer valuable insights into spending habits, income sources, and overall account health. They enable account holders to track their financial activities, detect errors or fraudulent transactions, reconcile balances, and budget more effectively.


What are the types of bank statements?


  1. Paper Statements: Traditional printed statements mailed to account holders' addresses, providing a physical record of transactions and balances.

  2. Electronic Statements (e-Statements): Digital versions of bank statements accessible through online banking platforms, often viewed and downloaded as PDF files.

  3. ATM Statements: Summaries of recent transactions available through automated teller machines (ATMs), providing quick access to account balances and recent activity.

  4. Mobile Banking Statements: Statements are accessible via mobile banking apps, allowing account holders to view transaction details, transfer funds, and manage accounts using smartphones or tablets.

  5. Interim Statements: Statements issued outside of the regular monthly cycle, typically used to provide updates on account activity or to address specific customer requests or inquiries.


 

What are the benefits of a bank statement?


  1. Financial Monitoring: Bank statements provide a detailed record of all transactions, allowing individuals and businesses to monitor their spending, track income sources, and assess their overall financial health.

  2. Error Detection: Regularly reviewing bank statements enables account holders to identify any discrepancies, errors, or unauthorized transactions promptly. This helps in preventing financial losses and addressing issues with the bank promptly.

  3. Budgeting and Planning: By analyzing spending patterns and account balances presented in bank statements, individuals can create realistic budgets, set financial goals, and make informed decisions about saving and investing.

  4. Proof of Income and Expenses: Bank statements serve as official documentation of income sources, particularly for self-employed individuals or freelancers. They also provide evidence of expenses for tax purposes, loan applications, or other financial transactions.

  5. Financial Accountability: Bank statements promote accountability by encouraging individuals to review their financial activities regularly. This awareness can lead to better financial habits, such as reducing unnecessary expenses or increasing savings contributions.


 

What is the difference between a bank statement and a transaction history?


Aspect

Bank Statement

Transaction History

Content

Comprehensive record of account transactions

Detailed list of individual transactions

Presentation

Issued periodically (e.g., monthly)

Accessible online or through mobile banking

Purpose

Formal document for financial records

Reference for recent account activities

Accessibility

Often provided in PDF format

Available in real-time or with a slight delay

Legal validity

Official document accepted for verification.

Informative tools may not hold legal weight.


 

How does a bank statement work?


  1. Compilation of Transactions: The bank compiles all transactions made on the account during the statement period, including deposits, withdrawals, transfers, fees, and interest earned.

  2. Statement Period: Each bank statement covers a specific period, usually a month, detailing transactions that occurred during that time.

  3. Issuance: At the end of the statement period, the bank generates the statement and sends it to the account holder through mail or makes it available electronically through online banking platforms.

  4. Information Included: The statement typically includes details such as the beginning and ending balances, individual transaction amounts, dates, transaction descriptions, and any fees or charges incurred.

  5. Review: Account holders should carefully review their bank statements to verify the accuracy of the transactions and reconcile them with their records.

  6. Record Keeping: Bank statements serve as important financial records for account holders, providing a snapshot of their account activity for the specified period.

  7. Dispute Resolution: If there are any discrepancies or unauthorized transactions, account holders can use the bank statement as evidence to resolve issues with the bank.

  8. Legal Documentation: Bank statements can also be used as proof of income or financial status for various purposes, such as applying for loans or filing taxes.


 

How can I get a bank statement?


  1. Online Banking: Many banks offer online banking services where you can access your bank statements electronically. Log in to your online banking account, navigate to the statements section, and you should be able to view and download your statements.

  2. Mobile Banking App: If your bank has a mobile banking app, you may be able to access your statements directly from the app. Look for the statements or documents section within the app to find your bank statements.

  3. ATM: Some ATMs allow you to print your recent transactions or request a mini statement. This may not give you a full statement but can provide you with recent transaction information.

  4. Bank Branch: You can visit your bank's branch and request a printed copy of your bank statement. You may need to provide identification to verify your identity.

  5. Phone: Some banks offer automated phone services where you can request certain account information, including recent transactions or statements. You may also be able to speak with a customer service representative to request a statement.


 

Conclusion


Bank statements are not just numbers on a page; they're a snapshot of your financial health. Understanding them empowers you to make informed decisions and take control of your money. By demystifying the jargon and highlighting key insights, this blog aims to simplify the process, helping you navigate your financial journey with confidence and clarity.



start building your neo bank 10x faster

22 views1 comment

1 Comment

Rated 0 out of 5 stars.
No ratings yet

Add a rating
Guest
Apr 12
Rated 5 out of 5 stars.

🎯 Must read this piece

Like
bottom of page