Reading Bank Statements Like a Pro

All of us receive bank statements each month for our bank accounts. Do you struggle with reading and understanding these statements? If so, you are not alone. Millions of people have been in the same position as you. Within this brief article, you can take away some great tips on reading bank statements like a pro.

What is a Bank Statement

Before we analyze how to read your bank statements, we should have a clear idea of what a bank statement is. Simply put, a bank statement tracks your account activity of deposits and withdrawals within the month. You may have your bank statements digitally on your device or mailed to you as a hard copy. Bank statements are a beneficial tool for keeping track of your money and spending habits in each account. It also helps you to know if there have been any financial errors or disturbances, which can then be immediately taken care of.

Understanding All Aspects of a Bank Statement

The first step to reading a bank statement like a pro is knowing all aspects of it. You will most likely learn the basics of your statement, as mentioned above. Yet there are many other areas which you may not be familiar with. A bank statement consists of your account balance, fees, interest earned, and account summary. Most of these critical factors can easily be overlooked, especially if you need to learn how to read your bank statements. When you know where to find your fees, you will not need to be shocked by any unexpected payments. Knowing where all your banking information, along with your bank’s information, will assist you in verifying your account. All of these aspects will be explained more thoroughly as we dive into them one at a time.

Personal Information

Your personal information is the first thing you will see on your bank statement. This should be near the top, with your bank account number, full name, and mailing address. Verifying this will ensure that you have the correct bank statement for the corresponding account.

Bank Information

This should typically be in a smaller font near the top of your statement as well. If you notice discrepancies or have any questions or concerns about your account, you can contact the bank via the phone numbers and emails provided. By using this information, you can get someone to assist you with your account promptly.

Account Activity

As mentioned earlier, your account activity is the most pivotal aspect of your bank statement. This will be the main section on your bank statement, the more activity, the more pages you will have. Your account activity will be divided into your deposits and withdrawals. Your deposits can include any transaction of money going into your accounts, such as your income pay or e-transfers. A withdrawal will consist of any transaction with cash leaving your account.

Account Summary

You may be overlooking the account summary section, which is one of the most helpful areas for you to look at. This gives you a summary of your starting balance and ending balance. This area gives you a good preview before you take a more thorough look at your bank statement.

Bank statements are undoubtedly crucial when it comes to managing your finances. After examining all areas included in your bank statements, you are sure to be able to read them like a pro!

Sources

-Batdorf, Emily. Payne, Kevin (2022). What is a Bank Statement. Forbes. Retrieved from 

https://www.forbes.com/advisor/banking/what-is-a-bank-statement/

-Mann, Baruch (2022). How to Read (And Understand) Your Bank Statement. The Smart Investor. Retrieved from https://thesmartinvestor.com/banking/guides-banking/understand-bank-statement/