What Is an Account Statement and How Do I Read It?
An account statement is a document that contains details of all the transactions made with your account during a period of time. Looking at your statement, you will be able to see all the transactions that come in and out of your account in one place. For each transaction, you will see the date, description, and amount of the transaction, as well as an ending balance. With this information, you can manage your finances and make better financial decisions.
A typical statement includes:
Personal identifying information, such as your name, bank account number, and address
The period of time covered by your statement, usually one month or a one quarter
Information about the financial institution initiating the statement, member service phone numbers and instructions for reporting fraud and mistakes
The balances for both beginning and ending of the statement period
All the deposits and withdrawals on your account
How do I read my statement?
A statement is designed to show you exactly what happened with your account during the previous month, showing details of all expenses. Most statements begin by grouping all your ending account balances for the month at the top, giving you an idea of each balance before looking at the activity.
Next, you’ll see all accounts separated (savings, checking, money market, etc.), and the activity below. Each individual transaction will be listed along with corresponding dates, amounts and payees. This detailed list will give you an idea of when money comes into your account each month, and when the money goes out.
Your transaction activity includes information about where the deposit came from and where the expense went. It is important to carefully review all transactions, especially expenses, to make sure they are accurate. If you notice any odd transactions that you are not sure you initiated, you should report them to your financial institution right away.
Paper statements or electronic statements?
Most financial institutions allow you to choose how you want to receive your statements. You have the choice of receiving a paper statement in the mail, or you can have an electronic statement posted on your account online.
To access your electronic statements, you will need to log into your account online using your personal login. Once you are logged in, you should search for “Online Statements”, this might be located under a heading like, “Services” or “Account Information”. After you locate your statements, you can choose which month to view. Usually, it’s possible to save your statement as a PDF on your computer or print it out.
Whether you choose to receive your statement electronically or by paper, it is important you understand reading your statement. Reviewing your statement each month can help you catch fraudulent charges, mistakes and simply helping you become aware of your finances!