Bank Statement

What Is a Bank Statement?

A bank statement is a periodic summary, usually issued monthly, that lists all transactions and balance changes in a bank account over a set period. It shows money coming in, such as deposits, and money going out, such as withdrawals, card purchases, fees, and transfers. Banks and credit unions issue statements for checking accounts, savings accounts, and similar accounts, and they serve as an official record of account activity.

What a Statement Typically Includes

Layouts vary between institutions, but most statements contain a similar set of details:

• The statement period, plus the account holder's name and account number, often partly masked
• The opening balance at the start of the period and the closing balance at the end
• A list of transactions with dates, descriptions, and amounts
• Totals for deposits, withdrawals, and fees
• Any interest earned, if the account pays it

Many banks also show a running balance, which updates after each transaction so the account balance on any given day is visible.

Why It Matters

Bank statements help account holders confirm that each transaction is accurate and that no unauthorized activity has occurred. Comparing a statement against personal records is known as reconciliation, and it can catch duplicate charges, missed deposits, and bank errors. Statements also document income and spending for budgeting, tax preparation, and loan applications, since lenders often request several months of them.

A statement can also show when an account balance fell below zero and triggered an overdraft fee, which is useful information for tracking cash flow.

Paper and Electronic Statements

Statements were once mailed only on paper. Today most banks offer electronic statements viewable through online banking, and many customers choose this option. Electronic versions can usually be downloaded as PDF files for long-term storage. Whichever format is used, banks keep their own records for years, though retention periods depend on the institution, so account holders may wish to keep their own copies.