What is a Bank Statement

A bank statement is an official record of a customer’s banking activities such as deposit, interest fees, withdrawals, transfers, and other payments. Bank account statement act as an essential document for serving a multitude of purposes as well. This document contains information such as user’s details, bank detail’s, balance information, transaction records, and so on. Customers can make use of this data to monitor their spendings, authenticating their account, and various other reasons. In this guide, read about how to read bank statement, how to get a bank statement, and other related information. 

How are Bank Statements Created?

Bank statements are an official summary of your banking transactions and activity. As they are used for a wide variety of purposes, you can benefit from understanding how a bank statement is created. Bank statements are essentially transactions records that occured in a specific range of time. So, in order to create a bank statement, banks record all the particulars such as deposit made, payments done, withdrawals, etc. with the exact amount. Moreover, the sender or receivers details are also mentioned for more transparency. Additionally, the bank also shows the account balance as of the opening date and closing date. Finally, banks can use a few softwares and banking applications to automate all the transaction records as well.   

What Information is on a Bank Statement?

A bank statement has the following information on them. 

• Bank details 
• Dates of the statement
• Account summary
• Transaction history

How to Access your Bank Statements?

You can access your bank statement either online or offline. The online method allows you to conveniently view your document from anywhere and anytime. On the other hand, you can go to the nearest branch of your bank and request the bank personnels to retrieve a bank statement on your behalf. 

Access Bank Statement Online?

Accessing a bank statement online is easier than you might think. Although steps may vary slightly from bank to bank, here are some general guidelines. 

• Go to the official website of your bank. 
• Login to your netbanking dashboard. 
• Locate bank statement option on your dashboard.
• You would need to authenticate your identity either by OTP or by entering your access PIN. 
• Once the authentication is complete, the bank statement will be visible to you. 
• You can download it or use it as per your perusal.

 

Other than that, you can also request the bank to send you your bank statement via Email ID periodically. You will receive a password protected document. 

Access Bank Statement Offline?

You can visit your nearest bank branch and request a physical or digital copy of your bank statement. You may need to fill out a form and pay a fee for this service. The bank staff will assist you in the process and provide you with your statement. Other than that, you can also choose to go to a nearby ATM to retrieve your bank statement from therein. 

Which Access Should You Prefer?

If you ask which is better, there is no fixed answer for that. Online methods such as netbanking and email setup is easy and convenient. However, many customers still do not feel comfortable with the technology and prefer to take bank’s assistance in person. For those customers, visiting a bank branch in person can be beneficial. Moreover, needing bank statement for visa requirements may require bank officer’s attestment. In those scenarios, one should prefer offline means of procurement. 

How to Read a Bank Statement?

Reading a bank statement does not need to be complicated. Once you understand what is all included in a bank statement, things are pretty straightforward from there:

• The particulars you can find on a bank statement include bank details, account holder details, dates of the summary, opening and closing balance within that date range, and transaction details. 
• You may want to check the opening and closing balance from a certain date range, or you may want to review transactions in that date range, or may be you want this to use as a verification document. Check each transactions carefully and report any unauthorised entries. 
• Find a pattern of your spending habits and make personal amends.   

What is the Format of a Bank Statement?

A Bank Statement can include the following details. 

• Bank details: The document contains name, logo, address, and other details of the bank. 
• Information of the account holder: The statement gives details such as name, address, and account number of the account holder. 
• Dates of the statement: The statement shows the dates of the transactions that are showing. Moreover, the date of issue of the statement also shows. 
• Account summary: This section shows the opening and closing balances of the account, as well as the total deposits, withdrawals, interest earned, fees charged, and other adjustments made during the statement period.
• Transaction history: This section shows the details of each transaction that occurred in the account during the statement period, such as the date, amount, description, and balance after each transaction.

Why is it Important to have a Bank Statement?

Having a bank statement can be crucial on various fronts. It is a document that provides a comprehensive summary of your financial transactions and banking activities within a specific period of time. With that information available, an individual can utilise it for various purposes like: 

• Monitoring financials – With a bank statement, one can check their banking activities to gain an understanding of their payments and receipts. These transactions can be deposits, withdrawals, transfers, and expenses.

• Planning – Analyse your spendings and savings and create a financial plan for yourself. You may want to spend efficiently or save more. With the bank statement, you can see patterns of your expenses and eliminate your unnecessary spendings more seamlessly.

• Verification – Bank statements are used as a means of account verification for various reasons including loan applications, credit card purchase, etc. Any financial institution can use your bank statement as a proof of your income and account.

• Tax – Bank statements can be a crucial document while filing tax returns. They provide evidence of your income, deductions, and other financial activities, helping you accurately report your financial information.
  

Checking for errors and frauds: Many a time, you will come across unauthorised transactions. With bank statements, you can review your transactions and report any fraud.