If you're looking at a bank statement for the first time, you're probably wondering what everything means. If you're a newbie, the information can be a bit confusing to decipher. Understanding how to read a bank statement correctly can help you learn better money management and avoid careless mistakes, like overdrawing your account.
Your statement details your account activity for a specific period of time, and depending on the type of account (usually checking or saving), this length may vary. You should carefully review your statement each time you receive one as it is the most opportune way to reconcile your own spending records with the banks. If you see any errors or
discrepancies, you have 60 days to report it to the bank; once those 60 days expire, the bank is no longer obligated to investigate.
Here are the essential parts of the bank statement so that you can better understand how to interpret where your money goes:
1.) Personal Info
This is your full name and permanent address, most typically the information you gave when you set up the account. Make sure that this is accurate and if you have plans to move, make sure to let your bank know so that they can send your statements accordingly.
2.) Account Information
3.) Statement Summary
4.) Transaction Summary