The Definition of Bank Statement

2019/02/25

An individual may perform numerous deposit and withdrawal transactions using his/her bank account. It becomes difficult for an individual to remember and keep  track of each and every transaction in terms of the amount and date on which a particular transaction was performed.

For Instance, an individual may have made multiple withdrawals of an amount of $ 500 during a particular month. It will be practically impossible for this individual to remember the date of each such withdrawal at the end of the month.

Banks provide bank statements to its account holders at regular intervals in order to ensure that account holders are aware of various transactions in their bank accounts.

What Is The Frequency On Which A Bank Statement Is Generated?

Generally a bank should provide bank statements on a monthly basis to its account holders.Bank statement can also be provided on a quarterly or biannual basis.

However, it is important for the individual to obtain bank statements on a monthly basis as it is much easier to verify the transactions for a single month in comparison to verification of a statement that covers transactions for a period of three or six months.

How To Obtain A Bank Statement?

Hard copy of bank statement is generally couriered by the bank to its account holders. An account holder can also obtain hard copy of a bank statement from any branch of the bank. However, it is important to note that some banks may levy financial charges for providing additional bank statement.

However, bank statements can also be obtained through email. For obtaining banks statements through email, account holders may have to place a special request with the bank for providing statements through email. Bank statements can also be downloaded by using online banking facility provided by most of the banks.

Here, an individual will have to specify the period for which bank statement is required. For Instance, an individual may have to enter a start date and an end date in the “Account Statement” option available in the online account to obtain bank statement for the specific period.

What Are The Components of A Bank Statement?

A bank statement will contain information on the inflow and outflow of funds from a bank account. Debits in a bank statement would indicate withdrawals, transfers or payments made by the account holder. On the other hand,credits in a bank statement would indicate deposits, transfers and payments received by the account holder.

In addition to this, bank statement will contain the opening balance at the beginning of the month (or other specific period such as opening balance at the beginning of the quarter) and closing balance at the end of the month (or other specific period such closing balance at the end of the quarter).

Bank statement is an important source of information for an account holder.It is must for every account holder to go through the bank statement in detail in order to verify the accuracy of bank balance and also to identify any possible errors or discrepancies that are appearing on the bank statement.

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