A monthly financial document that provides a summary of the account holder’s activity
What is a Bank Statement?
A bank statement is a monthly financial document that provides a summary of the account holder’s activity. Bank statements are generally prepared by the bank for the account holder at the end of each month.
Bank statements can be found online via online banking or be obtained from a branch of the bank. They are also commonly known as account statements or transaction summary statements.
Breaking Down a Bank Statement
The top of a bank statement generally shows the name of the account holder along with sensitive information such as bank account number and branch number. It also contains a summary table that shows the time period, opening balance, deposits, withdrawals, and closing balance.
The closing balance is calculated as Opening Balance + Deposits – Withdrawals.
Below the account summary, the bank statement shows every transaction the account holder engaged in, along with the corresponding payees, dates, and amounts of the transactions. Most bank statements show transactions in chronological order.
By looking at a bank statement, one can see exactly how much, where, and when the account holder spent money. Account holders can get a good estimate of monthly revenues and expenses by analyzing their bank statements for the last few months. It can help with financial planning and budgeting.
What is an e-Statement?
An e-statement is the electronic equivalent of a bank statement. As mentioned above, account holders are given several options to access bank statements. Bank statements can be accessed in print form at a physical branch location or via the bank’s online banking system/email.
Due to their ease of accessibility and storage, e-statements are more common than print statements.
Why are Bank Statements Important?
Budgeting and Financial Planning
A bank statement is like a personal P&L statement. It allows account holders to keep track of their finances and plan for future expenditures. Bank statements are also extremely helpful for budgeting, as they allow account holders to decipher how much they are spending on different categories.
For example, an account holder can calculate their monthly expenditure on food by adding up individual transactions.
Reconciliation and Identification of Fraudulent Activities
Once the bank prepares a bank statement or e-statement at the end of the month, account holders are usually given 30-60 days to analyze the charges and reconcile their cash balance.
Since the bank statement contains all charges, along with the corresponding dates and payees, it can help account holders identify any fraudulent activity. For example, if the bank statement shows a charge for a transaction that the account holder did not engage in, they can contact the bank and request that they look at the fraudulent transaction.
Credit Verification
Bank statements can also be useful to analyze the creditworthiness of the account holder. Most banks and financial institutions require verification of bank statements for the last 2-5 years before giving loans to individual clients.
Banks use the individual’s bank statements and other credit documents to analyze the creditworthiness of the borrower. It applies to most types of loans, including residential mortgages, student loans, and loans for small businesses.
Additional Resources
CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep learning and advancing your career, the additional CFI resources below will be useful:
FAQs
A bank statement is a list of all transactions for a bank account over a set period, usually monthly. The statement includes deposits, charges, withdrawals, as well as the beginning and ending balance for the period, along with any interest earned.
How do I get a bank statement? ›
You will either receive a a paper statement in the mail or get access to it electronically via your bank's website or app. Financial institutions typically let you choose whether to receive paper or electronic statements. In some cases a paper statement is an additional monthly cost.
How do I get my own bank statement? ›
If you do not have access to online banking, you can call your bank's customer service line. They can help you receive a paper copy of your statement. You can find the number for customer service on the back of your debit card or in the contact section of the bank's website.
What is bank statement proof? ›
A bank statement is an official document that summarizes your account activity over a certain period of time—typically one month. You'll find records of all transactions—both incoming and outgoing—so you know exactly what was going on with your funds during that period.
Who can see my bank statement? ›
Typically, the only parties that can check your bank statements or your account information are the account owner(s), authorized account managers and bank professionals. Banks take great care to maintain the privacy and security of their customers' personal information.
Is it hard 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.
How long does it take to get a bank statement? ›
Typically, banks generate statements at the end of each monthly cycle, so it can take approximately 30 days to receive a new statement. If you're requesting an older statement, it might be available immediately online, or it could take a few days to a week if the bank needs to mail it to you.
Can a bank give me a bank statement? ›
You can order a copy of an up-to-date statement in Online Banking or at one of our cash machines. You can also order your previous statements by calling Telephone Banking or visiting a branch.
Who sends the bank statement? ›
An official bank statement is typically sent by the bank to the account holder every month, summarizing all the account's transactions during the month.
Can the bank print me a bank statement? ›
A bank statement contains all of an account's transactions from a given statement period — usually a month. Many banks and credit unions allow you to view and download bank statements online or request a physical copy by mail or at a bank branch.
Regardless of what bank they're from, most bank statements look fairly similar. They typically include an overview of the account and bank, followed by an account summary and a detailed breakdown of activity over a specific period. The bank statement usually covers a period of one month, but it can also be quarterly.
How to get a certified copy of a bank statement? ›
How to Get a Certified Bank Statement
- Step 1: Email Your Bank on the Process. ...
- Step 2: Gather Necessary Documents. ...
- Step 3: Visit Your Bank's Local Branch. ...
- Step 4: Request a Certified Bank Statement. ...
- Step 5: Verification Process. ...
- Step 6: Pay Any Applicable Fees. ...
- Step 7: Receive Your Certified Bank Statement.
Originally Answered: Can we get a bank statement from any branch? Typically Bank Statements are generated from one designated source, however you can visit any branch office of your bank and request they send you one or better yet go online, access your bank account, and print it right off your own computer.
Can a bank refuse to give you a statement? ›
Is the bank required to send me a monthly statement on my checking or savings account? Yes, in many cases. If electronic fund transfers (EFTs) can be made to or from your account, banks must provide statements at least monthly summarizing any EFTs that occurred each month.
Is it safe to show bank statement? ›
Bank statements contain information that nobody wants to share willingly. But if you have to share one, share a redacted bank statement. Using reliable tools and double-checking everything before sharing them with anyone is essential. You will never regret using Redactable in this case.
Is it safe to provide bank statement? ›
Yes, it is generally safe to submit your statement for credit and other financial purposes. However, keep these points in mind: Check if the lender or financial institution is legitimate. Submit the statements only for loan, rental and legal purposes.
How do I request a bank statement by email? ›
Respected Sir/Madam, I would like to bring to your kind notice that, I am (Mention your name) maintaining a savings account. I have an account with your bank with the account number XXXXXXXXXXX5673, and I need a bank statement for the last six months (1/12/2021 to 1/05/2022).
Do banks charge for bank statements? ›
Yes. If you have a bank account with a brick-and-mortar financial institution, you may request a copy of a bank statement at a branch. The bank may charge a fee, though.
