What Is a Bank Statement? Parts, Uses, and How to Read One
A bank statement is a document your bank issues for each statement period, usually once a month, that lists every transaction in an account and shows the balance at the start and end of the period. Checking, savings, and money market accounts all come with statements. Credit cards have a similar document, usually called a billing statement.
The statement is the bank’s official record of your account. When a landlord, lender, or accountant asks for “bank statements,” this is what they mean.
The parts of a bank statement
Layouts differ from bank to bank, but most statements have the same five parts.
1. Header and account information
The top of the first page identifies the account:
- The bank’s name, address, and customer service contact details
- Your name and mailing address
- The account type, such as checking or savings
- The account number, often shown only in part
- The statement period, for example September 1 through September 30
2. Account summary
The summary shows how your balance changed during the period. Here’s an example with made-up numbers:
| Summary line | Amount |
|---|---|
| Beginning balance | $2,140.00 |
| Deposits and other credits | +$3,600.00 |
| Withdrawals and other debits | -$3,215.40 |
| Fees | -$12.00 |
| Interest earned | +$0.35 |
| Ending balance | $2,512.95 |
The math always works the same way: the beginning balance, plus everything added, minus everything taken out, equals the ending balance. That ending balance becomes the beginning balance on your next statement.
3. Transaction list
The transaction list is the detailed record of everything that posted during the period. Each line usually shows:
- The date the transaction posted
- A description, such as a merchant name, a payer, or a check number
- The amount
- On many statements, the running balance after each transaction
Some banks show one list in date order. Others group transactions into sections such as deposits, checks paid, card purchases, and electronic withdrawals. Checks are usually listed by number, and some banks include images of paid checks.
Pending transactions aren’t included. A statement shows only what posted by the closing date, so a purchase made on the last day of the period may not appear until the next statement.
4. Fees and interest
Service charges, overdraft fees, ATM fees, and other charges appear either in the transaction list or in a section of their own. Interest-bearing accounts also show the interest earned and the annual percentage yield earned for the period. Federal rules also require banks to show your total overdraft and returned-item fees for the period and for the year to date.
5. Messages and notices
The end of the statement often carries notices: upcoming fee changes, updates to your account agreement, and instructions for reporting errors. Skim them each month, since changes to your account terms are sometimes announced here.
How often you get a bank statement
Most checking accounts get a statement every month. Federal rules (Regulation E) require a statement for each monthly cycle in which an electronic transfer occurred, such as a debit card purchase or a direct deposit, and at least a quarterly statement when none did. That’s why a quiet savings account may get a statement only every three months.
The statement period doesn’t have to match the calendar month. Yours might run from the 15th of one month to the 14th of the next. The dates are printed on each statement.
Paper vs electronic statements
Paper and electronic statements (often called e-statements) contain the same information. With e-statements, your bank emails you when a new one is ready, and you view or download it as a PDF in online banking or the bank’s app.
| Paper statement | Electronic statement | |
|---|---|---|
| Delivery | Mailed after the period closes | Posted online, usually with an email alert |
| Past statements | Only the ones you’ve kept | Usually several years online, depending on the bank |
| Cost | Some banks charge for paper | Usually free |
| Security | Can be stolen from the mail; shred old copies | Protected by your login |
You can usually switch between the two in your online banking settings.
What a bank statement is used for
- Budgeting. A statement shows exactly where your money went during the month.
- Catching errors and fraud. Under Regulation E, you generally have 60 days after a statement is sent to report an unauthorized electronic transfer that appears on it, so review each statement soon after it arrives.
- Taxes. Statements support the income and expenses on your return, especially if you’re self-employed. Your bank reports interest separately, typically on Form 1099-INT.
- Loans and mortgages. Lenders commonly ask for recent statements, often the last two months, to verify your income and the money you have for a down payment and closing costs. Requirements vary by lender and loan type.
- Renting. Many landlords ask for recent statements with a rental application. See what landlords look for in a bank statement.
- Proof of income or address. Many agencies and employers accept a recent statement as proof of address or regular income, but each one sets its own list of accepted documents.
- Bookkeeping. Businesses use statements to reconcile their books and to catch transactions their accounting software missed.
Whatever the use, share the statement exactly as your bank issued it. Changing any detail on a bank statement is fraud. If you’d rather not share some information, ask the recipient whether a redacted copy is acceptable.
Bank statement vs transaction history vs bank letter
| Bank statement | Transaction history | Bank letter | |
|---|---|---|---|
| What it covers | One closed statement period | Any dates you choose, up to today | Specific facts, such as your balance on one date |
| Who creates it | The bank, automatically each period | You, by viewing or downloading activity | The bank, on request |
| Lists transactions | Yes | Yes, often including pending ones | No |
| Official document | Yes | No | Yes |
| Typical uses | Loans, rentals, taxes, records | Checking recent activity, importing into software | Proof of funds, account verification |
A transaction history is handy day to day, but it changes as pending items post, and it isn’t an official record. If someone needs to confirm your balance between statements, ask your bank for a letter. Depending on its purpose, it may be called a proof of funds letter, a verification letter, or a bank certificate.
How to read the codes on a bank statement
Transaction descriptions are often shortened into codes. These are some of the most common:
| Code | Stands for | What it usually means |
|---|---|---|
| ACH | Automated Clearing House | An electronic payment or deposit through the ACH network |
| PPD | Prearranged Payment and Deposit | A direct deposit or a recurring bill you authorized in advance |
| CCD | Corporate Credit or Debit | A business-to-business ACH payment |
| WEB | Internet-initiated entry | An ACH payment you authorized online or in an app |
| POS | Point of Sale | A debit card purchase at a store or other merchant |
| EFT | Electronic Funds Transfer | A general label for an electronic payment |
| ATM | Automated Teller Machine | A cash withdrawal, a deposit, or an ATM fee |
| NSF | Non-Sufficient Funds | A payment returned because your balance was too low |
| DDA | Demand Deposit Account | Usually your checking account |
| POD | Payable on Death | A beneficiary designation in the account title |
If you can’t identify a transaction, look for a merchant or payment company name in the description. If it still doesn’t make sense, contact your bank.
How to get your statements and use the data
Statements are usually in a section called Statements or Statements & Documents in online banking and in your bank’s app. Our guide on how to get a bank statement covers every option, including older statements and closed accounts.
Because statements usually come as PDFs, they’re hard to sort or total. Our converter reads a PDF statement and exports the transactions to Excel or CSV. If you keep your books in QuickBooks, you can convert the PDF to a QBO file and import it instead.