Bank Statement - A Comprehensive Guide


Bank Statement - Basic Definition

A bank statement shows the record of all the account holder’s transaction details within a particular period. It shows each and every transaction along with details like amount, reference number and corresponding payees. You can keep track of your expenditures and revenues by carefully analysing your bank statement.

An account statement contains information like the account holder's name, account number, branch name, and IFSC code. It also consists of information such as opening balance, time, total deposits, total withdrawals and closing balance. You can fetch your account statement either online through your bank’s internet banking or mobile banking portal or by physically visiting the bank branch.

KEY TAKEAWAYS

  • A bank statement lists deposits, withdrawals, charges, and interest earned along with the opening and closing balance for that period.
  • It is a record that shows all the transactions in a bank account during a certain time, which can be for a month, 3 months, 6 months, etc.
  • People usually check their bank statements every month to see what they've spent and monitor their expenditures to control them if required.
  • It can be used to figure out if false charges or fraudulent transactions.

How a Bank Statement Works?

A bank statement is a summary of all transactions of a particular account within a particular period in chronological order. It can be for the last 14 days, 1 month, 3 months, or 6 months. You can also customise the dates for a bank statement.

Usually, the bank sends account statements every month or quarterly basis. You can also log in to internet banking and get your account statement for a desired period instantly.

However, note that the bank might not send you a monthly account statement if you do not make at least a single transaction with that account. Transactions carried out electronically or through a branch visit are reflected in an account statement. Some of these include:

  • Debit or ATM card transactions
  • Payment of utility bills online
  • Direct deposit in the branch
  • Withdrawal from a branch or ATM
  • Any other automated payments like SIPs, EMIs, etc.

Types of Bank Statements

Bank account statements are mainly of two types. Let’s find out what they are:

  • Paper Bank Account Statement

    A paper bank account statement is a physical statement that you can obtain by visiting the bank branch or getting it delivered to your registered address. Please note that paper bank statements might have some additional charges because of their supply, labour, printing and logistics costs.

  • Electronic Bank Account Statement

    An electronic bank account statement is a statement in PDF format that you can obtain by logging into your bank's net banking portal or through mobile banking. You can download the e-statement and view it, or you can even take the printout of it.

    Some banks mail e-statements as PDF attachments on customers' registered mail IDs. Also, many banks allow their customers to print a summarised version of their bank account statement from ATMs.

    Usually, these e-statements come free of cost and have no additional charges. However, sometimes these charges may be included in the account maintenance charges.

Benefits of a Bank Statement

Here are some of the benefits of a bank account statement:

1. Expense Analysis and Financial Planning

A bank account statement is probably the best tool to analyse your expenditure and inflows. Having a list of all transactions helps you plan your future expenses beforehand. Moreover, it helps in budgeting and financial planning as keeps a track of the amount which is spent in various categories.

2. Credit History Check

A bank account statement is also useful in analysing the creditworthiness of an account. As it reflects each and every transaction details of the account holder. It helps the lending institution to assess the income-to-expenditure ratio of the individual along with the average monthly balance.

Therefore, many lenders often ask for the last six months or last year's bank account statements to assess the creditworthiness of an individual.

3. Detection of Inappropriate or Fraudulent charges

Any inappropriate name or irrelevant amount of transaction can help the account holder to detect inappropriate or fraudulent charges. In such a situation the account holder can raise a dispute against that transaction reference number from the bank's portal.

Final Words

A bank account statement is one of the most crucial documents that enables account holders to analyse the transaction history within a given period. You can get a bank statement through internet banking or mobile banking in a PDF format which is an e-statement. Alternatively, you can also sign up for a paper bank account statement.

Other Words

  • Balance Transfer
  • Bankruptcy
  • Borrower

Apply for A Loan

Business Loan Logo

Business
Loan

Business Loan Logo

Business
Loan

Professional Loan Logo

Professional
Loan

Professional Loan Logo

Professional
Loan

personal loan Logo

Personal
Loan

personal loan Logo

Personal
Loan

Car Loan Logo

Pre-Owned
Car Loan

Car Loan Logo

Pre-Owned
Car Loan

Medical Equipment Loan Logo

Medical Equipment Loan

Medical Equipment Loan Logo

Medical Equipment Loan

Machinery Loan Logo

Machinery Loan

Machinery Loan Logo

Machinery Loan

Loan Against Property Logo

Loan Against
Property

Loan Against Property Logo

Loan Against
Property

Apply for A Loan

Contact Us logo Quick Apply CIBIL Score logo Free CIBIL Whatsapp logo Connect on WhatsApp