If you are looking for essential tools for reaching your financial goals, a Bank Statement can help you do that. It is a document showing details about account activity and account balances over the last month or quarter. Using this information, you can balance your account, review spending, and spot errors or fraud before they become problems.
You should look at these reports regularly in order to make the most of your money and protect your savings from any unnecessary issues. We have thoroughly described what a bank statement is and provided steps on how to use it. If you wish to learn more, continue reading on below because we’ve got the information that you need!
Table of Contents
What Is a Bank Statement?
How To Use a Bank Statement
- Balance your account: You should balance your bank accounts every month. You must review every transaction on your bank statement and compare to your own records of what’s happening in your account. This helps ensure that you and your bank are on the same page as to how much you have in your account, how much was added, and how much was removed. Occasionally, you’ll find differences that can clear themselves up but sometimes you’ll see serious problems that might need immediate attention.
- Identify fraud and errors: If you see anything unexpected on your bank statement, find out if the transaction to see if it’s a result of theft or a bank error. Do not worry because in most cases, the federal law protects you from losses. The sooner you notify your bank, the more protection you have so do not wait. However if you wait more than 60 days to report the problem, you might become responsible for losses in your account.
- Understand spending and income: If you want to know where your money goes, your transaction history tells a detailed story that can help you track your spending. If you need to make changes to your budget, your statement can show you what the impact will be and it will hold you accountable for the upcoming month.
- Know how much you have: You should make it a habit to check your bank account every now and then or sign up for account alerts. Monthly statements provide a regular opportunity for you to check in and see where you stand. You might not know how much money you have in your checking and savings account which could cause overspending. You’ll reduce the chances of missing payments and having to pay penalty fees due to insufficient funds if you keep tabs on your account.
- Document your finances: Bank statements are useful when applying for loans, and in other situations where you need to document your assets and income. Places often require two or more bank statements when you apply for large loans such as house loans or car loans.
What To Do With a Bank Statement
You may think that your bank statement seems like a unnecessary piece of paper or electronic document, but it can be very useful. It can help you make sure your transactions are all accurate and there is no fraud. This document can serve as a way of proving how much money you make and to track your spending.
Bottom Line
In general, a bank statement is a document that shows details about your account activity and balances over the last month or quarter. As a precaution to prevent fraud or other errors, you should make it a habit to check your bank statement regularly.
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