What Is A Bank Statement? 2023 [How To Get A Bank Statement?]

Updated On: 08/27/2023
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You have very likely heard the term "bank statement" many times. But do you know what it means?

Understanding your bank statement is critical to managing your money effectively. So, stick around as we tackle an essential question: What is a bank statement?

A bank statement may seem like a randomly generated document in your email or snail mail.

But it's more than just a piece of paper or a digital file. Your bank statement contains vital information about your financial profile and personal responsibility; it's like a monthly report card on finance.

Stripping away the financial jargon, let’s explore this together in straightforward terms any of us can grasp.

What is a Bank Statement?

A bank statement is a summary of financial transactions that have taken place over a specific period of time, typically monthly, on a particular bank account held by an individual or business with a financial institution.

It details deposits made, checks paid, debit card transactions, total account withdrawals and deposits, service charges, and any other relevant financial activity.

Bank statements are commonly used to track personal or business finances, identify potential frauds, and prove income or creditworthiness.

How a Bank Statement Works

Bank statements operate on a relatively straightforward principle. They deliver details of all transactions that have occurred within a predefined period. Here is a step-by-step rundown of how this process works:

How a Bank Statement Works

Step 1: At the beginning of the period (say, July 1), your banknotes your opening balance. This includes any money present in your account.

Step 2: The bank records all transactions made to or from your account throughout the stipulated period. This includes direct deposits from an employer, checks you've written, debit card purchases, ATM withdrawals, bank fees, or automatic bill payments.

Step 3: At the end of the statement term (July 31), the bank again notes down your closing balance. This figure is derived by deducting all outflows (payments) from the sum of inflows (deposits) and the opening credit.

When you receive your statement for July – either by mail or electronic delivery – it will contain these transaction details: opening balance, closing balance, and all transactions in between.

Types of Bank Statements

Bank statements primarily come in two formats: paper bank statements and electronic bank statements.

Let's delve into these types to help you better understand their structure, benefits, and functionality.

Paper Bank Statements

Paper bank statements were the norm for over a century before digital banking became widespread.

Despite vast technological advances in the financial world, many people still opt for this traditional format. Here's why:

  • Tactile Connection: Some individuals prefer having a physical document they can hold, fold, file away for future reference, or even shred when no longer needed.
  • Mail Delivery: Your bank will send your paper statement directly to your mailbox, ensuring you don’t miss it amid a flood of digital information.
  • Data Security: With no online data transmission, there is essentially zero risk of cyber theft or hacking related to your bank statement.

Receiving paper bank statements could involve additional fees from many banks and are certainly less environmentally friendly than their e-statement counterparts.

Electronic Bank Statements

Welcome to the future. This time-saving innovation gives you fast access - anywhere and anytime - to your statement:

  • Eco-friendly: E-statements reduce demand for paper, thereby contributing to conservation efforts.
  • Efficient Storage & Retrieval: Remember trying to locate that one specific paper statement from five years ago? With e-statements stored securely on your device or cloud-based services, such hassles are gone!
  • Access Convenience: You can usually access your e-statement using any web-enabled device – smartphone, tablet, laptop, or desktop computer – relegating trips to the mailbox into memory lane.
  • Instant Availability: Banks typically issue e-statements faster than printed ones since there's no need for delivery via snail mail.

As we evolve with technology and environmental consciousness grows stronger every day, electronic banking appears set to become ever more prevalent in our lives.

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How to Get a Bank Statement?

How to Get a Bank Statement?

Gone are the days when you had to visit the bank for every minor task. In today’s technology-driven world, getting a bank statement is as simple as pie. Here's how:

Traditional Way: For a paper statement:

  • Contact your bank via phone or by visiting in person.
  • Request for mailed bank statements.

Digital Path: A majority of banks, and all digital banks, now offer online statements:

  • Log into your account via your bank's website or mobile app.
  • Look for the "Statements" or "Documents" section in the menu.
  • Most banks will list your previous statements dating back several years.
  • Download or view these documents at your leisure.

Additional pro-tip: Should you require official statements for application processes such as mortgages and visas, you might need an official copy stamped by the bank. Make sure to clarify this detail with your respective institutions in advance.

What is a Bank Statement Used For?

Your bank statement is an exhaustive record of your financial activities, with multiple utilities ranging from mundane day-to-day chores to significant life events. Let's explore these further:

  • Account Monitoring: Regularly reviewing your bank statement helps you actively supervise all transactions, ensuring no discrepancies or incidences of fraud fly under the radar.
  • Balancing Your Checkbook: If you're old school and maintain a check register, your bank statement is pivotal in helping reconcile it with actual account balances.
  • Verification: Need to prove your creditworthiness? Or show proof of income for that dream rental apartment? Bank statements can validate your financial status to various parties, including lenders, landlords, or government agencies.
  • Budgeting & Financial Planning: Detailed examination of deposited income and expenditures helps you map out a more accurate budget and plan future spending habits.
  • Filing Taxes: Come tax season, those statements are invaluable in corroborating income amounts and tracking deductible expenses.
  • Dispute Resolution: Should any disagreements arise over payments with individuals or institutions, your bank statement provides a solid documentary trail to settle such issues.

Can Anyone Check My Bank Statement?

Your privacy is paramount; thankfully, it is also a priority for financial institutions. The truth is that apart from you, no one can access your bank statement without your explicit permission.

There are stringent laws for this reason, including acts like the Gramm-Leach-Bliley Act (GLBA) in the U.S.

This legislation protects consumers’ private financial information and mandates that banks securely store and guard your data against unauthorized access.

Banks cannot disclose any information to third parties unless required by government agencies or court orders. Only authorized personnel can access your records within the bank within specified limits.

Still, as an additional layer of security, it’s always wise to keep your physical bank statements safe and secure while ensuring you know who's accessing your online banking and electronic statements.

Why do I need to review my bank statement?

Reviewing your bank statement is like taking regular health check-ups; it's preventative care - but for your financial health.

  • Track Spending: Your bank statement provides a snapshot of where your money is going. Had too many take-outs last month? Subscriptions draining your account? Deconstruct this data to plan your future budget more wisely.
  • Identify Errors: Banks are machines, and machines could err too. Routinely checking your banking activities could help you identify and immediately rectify errors like unauthorized transactions, wrong transactions, or even double charges, ensuring a seamless financial journey.
  • Spot Fraud: Financial fraud isn't uncommon these days. A sudden small withdrawal could be as alarming as a significantly large one, indicating potential cyber theft.
  • Meet legal requirements: Some legal proceedings might demand detailed financial analysis over periods even extending several years past.

FAQs About What is a bank statement?

What does "YTD" on my bank statement mean?

YTD" stands for Year-to-Date. It represents the total transactions in your account from the start of the calendar year to the present.

Is it safe to throw away my old bank statements?

No, it's essential to dispose of them properly, ideally shredded, as they contain confidential financial information susceptible to identity theft.

How long do banks keep account statements?

Generally, banks retain copies of your bank statements for at least five years.

Does my bank statement show all transactions?

Yes, your bank statement includes all transactions – deposits, withdrawals, fees charged by the bank, and interest earned during the statement period.

Can I use a bank statement as proof of address?

A bank statement is widely accepted as proof of address and other details like your name and account number.


Your bank statement is an insightful snapshot of your financial activity. Understanding your bank statement lets you track spending, detect errors, deter fraud, and accurately file your taxes.

As you continue your financial journey, remember these monthly or quarterly reports' vital role in maintaining a robust and healthy economic profile.

Savvy and efficient money management begins with knowing how to read this invaluable tool. So the next time you glance at your account’s transaction history, remember - it's not just data; it's the story of your money.

Michael Restiano

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

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