Definition of a Bank Statement
A bank statement can seem like a fairly simple piece of paper at first glance. As BusinessDictionary.com puts it, a bank statement is a "report released by banks that lists deposits, withdrawals, checks paid, interest earned, and service charges or penalties incurred on an account." However, a definition like this barely scratches the surface of what is contained in the pages that your bank gives you on a periodic basis. A bank statement is defined not only by what is contained within it, but by the way you use it.
Other People Are Reading
-
Basic Account Information
-
Each statement you receive from your bank will contain basic information regarding your account. This is usually located at the top of the statement, and should be used as a general reference point for your account. Your account number can be found here, as well as the month-end balance of your account as calculated by the bank. Additionally, the contact phone number and address of your bank are likely located at the top of your statement with this information, so that you can contact the bank with any questions or concerns you may have about your statement.
Credits and Debits
-
Your bank statement will also contain an itemized list of the credits and debits to and from your account. These could be transactions that you initiated directly like deposits and withdrawals; or they may be transactions initiated by the bank, interest and fees. This information on your statement will allow you to check your personal records against those of the bank and determine whether or not there are any discrepancies that need to be resolved. The statement will give you a clear picture of whether you spent more or earned more during the period for which the statement was issued.
-
Special Notifications
-
While the most informative part of the bank statement is the part with a listing of your transactions, your bank may also use your statement to communicate other important information to you. The bank may use the statement to send you notification of a modification in the terms of your account or an important change that is taking place within the bank itself. These notifications sometimes do not require you to change anything about what you are doing, but it is also possible that they may contain pertinent information for you and your account.
Statement Period
-
Most bank statements are issued on a regular monthly basis, but this is not always the case. Depending on the type of account and the amount of activity that occurs on it, statements may be issued on a less frequent basis--such as quarterly. If there is no activity on the account, the bank is not required to issue a frequent statement, and usually they will conserve costs by avoiding unnecessary statements. The statement you receive will cover information from the most recent statement period, which means the period of time that has passed since your previous statement.
Delivery Method
-
It used to be that all bank statements were delivered in the mail to customers. However, with technological advances in recent years, banks now offer alternative delivery methods. You may choose to receive your statements online, where you would visit your online banking website to view the information after a statement has been issued. Some banks may offer statements sent directly by e-mail, or give you e-mail notifications of when your online statements will be available. Depending on your account type and business relationship with the bank, some financial institutions are also willing to provide their statements via fax. The information is available to you in many forms, and should be monitored to make sure that your records are accurate.
-
