Bank Statement

A bank statement is an official document showing information about the movement of funds in a bank account. This document is sent to bank clients by post or email monthly or quarterly. The frequency of sending a bank statement depends on the bank’s policy and the client’s preferences.

What Information Should Be Included in a Bank Statement

A bank statement is a comprehensive tool that allows clients to assess the current state of their accounts. It includes the following information:

• All deposits, transfers, and withdrawals for the past month;
• Charges that the bank collects monthly. These may include fees for account maintenance, additional insurance, and other services;
• Account balance at the beginning and end of the month;
• Possible interest that you have earned during this period;
• Additional information: bank account number, personal details of the bank account holder and financial service provider.

What Are the Possibilities of Using a Bank Statement

A bank statement is a multi-purpose document that can be useful in the following cases:

• Analyzing income and expenses to develop and maintain financial discipline;
• Detecting possible fraudulent activities with a bank account, such as paying for purchases you did not make;
• Detecting errors in writing off funds or income shortfalls. For example, the same transaction can be made twice due to some technical failure;
• Searching for discrepancies in your bank account records and bank statements;
•  Providing proof of income when applying for a loan.

If you find any errors, discrepancies, fraudulent activity, etc., you must dispute them within 30 days following the procedure established by the bank.

Two Types of Bank Statements

Before the development of digital infrastructure, banks regularly sent bank statements to their customers by post. Now, they can be received in digital format by email or viewed in the bank’s online account. If you prefer mailed paper statements, the bank may charge a small fee for this service. The cost of sending this document will also be indicated on your bank statements.

Bank Statement Storage Periods

Bank statement storage periods vary for banks and their clients:

• Bank clients must keep them in paper or electronic form for approximately a year.
• If any transactions on the account are tax-related, bank statements should be stored for at least 3 years.
• If you run a business, it is preferable to store bank statements for at least 7 years.
• Banks keep these documents for 5 years.

Officially confirmed movement of funds on the account may be needed for reporting, preparation of tax returns, dispute resolution, etc. Therefore, do not neglect these storage rules and keep all bank statements in one place.

Conclusion

A bank statement provides a full overview of the movement of funds in a bank account. This financial document ensures transparency of all transactions. A bank statement may be needed by bank clients and third-party organizations. These may be creditors assessing the solvency of a client or government agencies.