Bank Statement | Meaning and Definition

What is a bank statement?

A bank statement is a document that shows all of the financial activity in your account over a certain period, typically one month. This includes deposits, withdrawals, fees, and interest earned. 

Bank statements can be delivered to you electronically or by mail. If you opt for paperless statements, you can usually access your statement online through your bank’s website or mobile app. 

Most banks will send out monthly statements automatically unless you specifically request otherwise. You can typically find options to have your statements sent more or less often under the “settings” or “statements” tab within your online banking account profile. Whether you choose electronic or paper statements, it’s important to keep tabs on your account activity and reconcile your statement. 

What is banking?

Banking, by definition, is the business of receiving deposits and channeling those funds into lending activities. In a broader sense, banking also includes other financial services like investing, foreign exchange, and money management. 

When you deposit money into a bank account, you are essentially entrusting that bank with your hard-earned cash. 

Benefits of a bank statement

  •     A bank statement can provide you with an overview of your account activity, including deposits and withdrawals.
  •     It also shows your account balance and typically includes a history of past transactions. This information may be helpful when reconciling your account or preparing your taxes.
  •     Additionally, if you have questions about a specific transaction, your bank statement may provide the answer.

Some banks also offer additional features on their bank statements, such as images of canceled checks and detailed information on each transaction. You should review your bank’s policy to see what is included in your statement.