How to Check a Bank Statement

Understanding how to read your bank statement will enable you to detect errors made by you or the bank — such as an unrecorded check or a missing deposits — as well as what might be otherwise unrecognizable fees. Bank statements provide a wealth of information. Knowing how to conduct a thorough examination of your bank statement will help to ensure that you remain firmly in control of your finances and are able to communicate with your bank when a discrepancy arises.

Instructions

1. Open your bank statement as soon as possible. The bank often has a set time limit for reporting errors. For discrepancies involving a debit card, an online transaction, or any other electronic bank transaction, the time limit typically is 60 days. Such limits normally do not apply to handwritten checks, but early reporting of any issue is advised.

2. Check the date on the statement. The bank statement will outline the period of time it covers. Compare the entries in your check register to those on the bank statement.

3. Read the summary, typically located at the top of page 1 of the statement, to obtain a quick overview of the statement period's activity. Note the opening balance, total deposits, withdraws, fees and checks.

4. Review the section detailing interest accrued. Banks offer both interest-bearing checking accounts and those that bear no interest. If you opened an interest-bearing account but your statement indicates otherwise, you are more likely to catch the error.

5. Examine the record of daily transactions, which will be listed chronologically. Note that the date of each transaction is based on when it cleared. If you wrote a check near the last day of the month, it likely will not show until the following month.

6. Pay close attention to debit card transactions, which sometimes are entered incorrectly by merchants. Ensure that each such transaction appears only once. Check the figures in each transaction against the amount recorded in your check register and on the receipt for purchase

7. Circle any unauthorized charges against your account and dispute them.

8. Note all fees charged by the bank and ensure they are consistent with the conditions under which you opened the account or your understanding of changes reported by the bank..

9. Identify and resolve any indication of a non-sufficient fund charge — a fee assessed against your account when you write a check that creates an overdraft.

10. Call your bank during normal business hours to discuss discrepancies. Follow up in writing to create a paper record of the issue

References

• MoneyRate.com; 5 ways to make balancing your checkbook easier; Barbara Marquand; Nov. 24, 2010