What Is a Bank Statement?

Not sure what a bank statement is or why it matters? It’s your financial report card—showing every deposit, swipe, fee, and transfer in your account.

You can use it to track spending, spot fraud, or prepare for a loan. A bank statement puts your financial activity in one place, so you can make smarter money decisions.

What You’ll Find on a Bank Statement

A bank statement typically contains the following information related to a checking account:

• Account summary: The statement displays your name and address, the account number, and balance at the top.
• Transaction history: Detailed list of all transactions during the statement period, including deposits, withdrawals, transfers, etc. However, your bank statement may not include pending transactions.
• Fees incurred: A list of bank fees charged, including ATM fees, overdraft fees, and monthly maintenance charges.
• Interest accrued: Interest earned on the account during the statement period if it’s an interest-bearing account.
• Statement period: Start and end date of the statement period are specified.

Why Bank Statements Matter for Budgeting

A bank statement gives you the raw data you need to build a working budget. It shows exactly how much you spent, where it went, and how often it happens.

Use it to:

• Group your expenses – Sort transactions into categories like groceries, utilities, and entertainment. This makes it easier to see where your money goes.
• Spot spending patterns – Watch for recurring charges, seasonal spikes, or impulse purchases that throw off your goals.
• Set realistic limits – Once you see what’s typical, decide how much to spend in each category—and stick to it.
• Measure your progress – Compare your actual spending to your plan and adjust as needed to stay on track.

A bank statement takes the guesswork out of budgeting. You get real numbers, not rough estimates.

How to Use a Bank Statement to Track Spending

A bank statement gives you a clear view of your account activity. You can check every transaction, confirm balances, and spot errors before they cause bigger problems.

Use it to:

• Verify charges – Make sure every debit card purchase, withdrawal, and transfer looks correct. Report anything you don’t recognize right away.
• Watch for fees – Scan for ATM charges, overdraft fees, or monthly maintenance costs that you may be able to avoid.
• Track account balance – Review your deposits and spending to see if your balance lines up with your expectations.
• Stay organized – Use your statements to keep personal finance records up to date for budgeting, taxes, or loan applications.

Checking your statement monthly helps you stay in control and avoid surprises.

How to Review a Bank Statement for Errors or Fraud

To effectively review your bank statement, consider the following expert tips:

• Reconcile with records: Before diving into your statement, gather any relevant records such as checkbook registers or online transactions. Cross-reference these with the transactions listed on the statement for accuracy.
• Investigate unusual transactions: Reviewing your bank statements regularly will allow you to identify transactions you don’t recognize. These should be investigated. Contact your bank immediately to report any suspicious activity and protect your account.
• Verify fees & charges: Ensure all fees and charges on the statement are accurate and not duplicated. Report any discrepancies to your bank to resolve.
• Match balances: Ensure that your opening and closing balances match your records. Investigate any differences.
• Check for missing transactions: Ensure all transactions you remember making are listed on the statement. Inquire with your bank about any missing transactions.
• Review date range: Confirm the statement covers the correct time period and all transactions are included.
• Be mindful of small transactions: Scammers often use small transactions to test if a card is active, so watch out for these.

Where to Get a Copy of Your Bank Statement

Here are some ways to get a bank statement from your financial institution:

• Online banking: Ditch the paper bank statement and go digital. Most banks offer electronic statements that can be viewed and downloaded through your online banking account. Simply log in and head to the “Statements” or “Account History” section to get your bank statement online.
• Mobile app: The convenience of mobile banking extends to accessing your bank statement. Log in to your mobile app, find the “Statements” or “Account History” section, and download.
• In-person: If you prefer paper bank statements, visit your bank branch and request a statement from a customer service representative. You may need to provide ID and there may be a fee for this service.
• By mail: Some banks send regular paper statements to their customers. Contact your bank to sign up and make sure your mailing address is up-to-date.
• Telephone banking: Request a statement through your bank’s customer service line. Follow the prompts to have it mailed or sent via email.
• Email request: Some banks accept statement requests via email. Simply send a request to the customer service department.

How often should you check your bank statements?

We recommend reviewing your bank account statement at least once a month. This habit ensures the accuracy of transactions and helps detect any potential fraud quickly. Regular monitoring of your bank statements is essential for securing and maintaining your financial well-being.

Keeping track of your spending and financial status is made easier through monthly statement reviews. Before making significant financial moves such as taking out a loan or making a big purchase, it’s smart to double-check your statement for sufficient funds and any errors. And don’t forget to report any unauthorized transactions to your bank promptly.

How long do banks keep statements?

Banks must keep records of bank statements for up to five years under the Bank Security Act. Even if you’ve closed your account, the bank will retain your records. Statements may be needed for tax audits, loans, legal proceedings, or other purposes.

You can usually access recent bank statements online for free. However, banks may charge for older statements. Keep your account information safe by shredding any bank statements that are no longer needed.

Tips for Storing and Organizing Your Bank Statements

To keep track of your financial records and maintain a well-organized system, consider the following tips for storing your bank statements:

• Digital storage: Save electronic copies of your bank statements in a designated folder on your computer or a secure cloud storage service. Regularly back up your digital files to prevent data loss.
• Physical storage: If you prefer paper statements, organize them in a filing cabinet or a dedicated binder, sorted by date or account type. Store them in a secure location, such as a locked cabinet or a safe.
• Shred old statements: As mentioned earlier, shred any old bank statements you no longer need. This helps protect your personal information from identity theft or fraud.

How to Use Bank Statements for Long-Term Financial Planning

Bank statements are a practical tool for long-term financial planning. They show your income, expenses, and patterns over time. This information helps you set goals, adjust your budget, and make informed decisions about saving, investing, and paying down debt.

Here are some ways to use your bank statements for financial planning:

• Establishing an emergency fund: Analyze your monthly expenses to determine how much money you need to set aside in an emergency fund. Aim to save enough to cover at least three to six months’ worth of living expenses.
• Retirement planning: Review your bank statements to assess your current savings rate and identify ways to increase your contributions to retirement accounts, such as 401(k)s or IRAs.
• Debt reduction: Use your bank statements to evaluate your current debt levels and develop a plan to pay off high-interest debt first. This can save you money on interest payments and improve your overall financial health.
• Saving for major purchases: Analyze your statements to determine how much you can realistically save each month towards a major purchase, such as a new car or a down payment on a house. Set a savings goal and track your progress over time.
• Investing: Evaluate your financial situation using your bank statements to determine how much you can afford to invest in stocks, bonds, or other assets. This can help you build wealth and achieve long-term financial goals.

Why Reviewing Bank Statements Regularly Pays Off

Checking your bank statements every month keeps you one step ahead. Here’s what you gain:

• More control over your money – You’ll catch mistakes, forgotten charges, or surprise fees before they spiral.
• Smarter budgeting – Regular reviews show where your money actually goes, which helps you set better spending limits.
• Early fraud detection – Spotting an unfamiliar charge early can stop bigger losses and protect your account.
• Fewer unnecessary fees – You’ll notice recurring charges or avoidable penalties that might otherwise slip by.
• Stronger financial habits – When you track your activity consistently, you make better decisions—and stay focused on your goals.

Final Thoughts

A bank statement gives you a complete snapshot of your money—what came in, what went out, and where it all went. When you review it each month, you stay in control of your finances.

Use it to catch mistakes, avoid fees, and make smarter decisions. Small habits like this can lead to better budgeting, stronger savings, and less stress.