What Is a Bank Statement Definition, Benefits, and Requirements

A bank statement summarizes all the account’s monthly transactions and is typically sent by the bank to the account holder every month in paper or digital form. Bank statements contain checking and savings account information, such as account numbers and a detailed list of deposits and withdrawals. 

What Is a Bank Statement?

A bank statement summarizes all the account’s monthly transactions and is typically sent by the bank to the account holder every month in paper or digital form. Bank statements contain checking and savings account information, such as account numbers and a detailed list of deposits and withdrawals. 

Key Takeaways

 

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.Account holders generally review their bank statements every month to help keep track of expenses and spending, as well as monitor for any fraudulent charges or mistakes.On average, paper statements cost about $3 per statement, which can add up over the year.

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How a Bank Statement Works

A bank issues a bank statement to an account holder that shows the detailed activity in the account. It allows the account holder to see all the transactions processed, typically chronologically.

 

Most banks send statements to the account holder either monthly or quarterly. Banks and credit unions aren't required to send you a monthly statement unless you made at least one electronic fund transfer that month. Electronic fund transfers include:1

 ATM and debit card transactionsPayments using online bill paymentDirect depositsAny recurring automatic deduction payments 

Your bank can usually change the bank account statement cycle date at any time.

Differences between Bank Statements and Pay Stubs

While bank statements and pay stubs are financial documents, they differ significantly.

Focus on transactions vs. focus on income

Banking records primarily focus on recording the transactions that occur within your bank account. They provide a comprehensive overview of your financial activities, including deposits, withdrawals, and transfers.

On the other hand, pay stubs concentrate on your income and deductions related to your employment. They detail your earnings and provide a breakdown of the various deductions made from your paycheck.

What is the Importance of Bank Statements?

Tracking income and expenses for budgeting purposes: Bank statements offer a detailed record of your financial activities, making tracking your income and expenses easier. By analyzing your banking records, you can identify areas where you may overspend or allocate more funds toward savings or other financial goals.

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Benefits

Through our paycheck stub calculator, you will be able to efficiently keep track of your finances, secure bank loans, obtain credit cards and use the stub as proof of income and a strong work reference.