A bank statement or billing statement is an invaluable tool for anyone managing an active account — whether it’s a credit card, debit card, or savings account.
To keep track of your financial health, you should set aside time each month to review your accounts. It’ll give an overview of how much income your household brings in, and you can compare that to outgoing expenses to set a practical budget and make sure you’re living within your means.
So, what is a bank statement? Where do you get one, and how do you read it? Let’s dig a little deeper.
A bank statement, billing statement, or account statement — all the same thing — is a report that summarizes account activities during the current billing cycle. It shows your deposits, check or debit card payments, direct deposits, and automated bill pay actions.
Bank statements are records of your checking and savings accounts with a financial institution, like a bank or credit union. Account numbers, deposits, charges, cash withdrawals, current balance, beginning balance, and ending balance are all included in these statements.
These days, banking statements are often handled electronically or online. They’re typically sent to your email or accessible through your bank’s website and mobile app. Paper-based bank statements are rare today, but you can still receive them via mail.
A credit card statement shows all activities related to your credit card account, including purchases and payments.
The difference between the statement balance and the current balance on a credit card statement is relatively simple. The statement balance refers to the total at the close of the billing cycle. The current balance is the real-time balance of the account, which may include purchases, transactions, or deposits that aren't on the statement.
Bank statements are designed to be easily readable, but they can contain a ton of information. It’s still possible to find yourself confused after looking over one.
Unfortunately, we can’t provide a single bank statement example since they vary across financial institutions and accounts. Instead, we’ll explain what you’ll likely find in a statement from any institution.
Here are some of the most essential elements of a bank statement:
You’ll often find legalese, disclosures, and disclaimers included on statements in the footnotes or the document's footer.
What is the purpose of a bank statement? Many people throw out their paper bank statements and neglect to check them online. You should avoid this because it’s best to have a paper trail.
Here's what bank statements can help you with:
Many banks and financial institutions automatically send you a paper statement monthly. You can also opt to go paperless and receive statements electronically instead — just another benefit of online and mobile banking. You can usually find them under a “statements” or “e-statements” section within your banking portal.
Your bank or credit union may also automatically send you emails and notifications when a new electronic statement is posted. Both formats offer the same detailed breakdown of your financial activities.
It makes sense to review your bank statements, billing statements, and credit statements regularly. But how often?
It’s best to review traditional banking statements when they become available — around once a month. The exact times and dates depend on when your bank posts the documents.
You should also check online accounts weekly to review transactions and look for unauthorized purchases or charges. This allows you to course correct if you learn you have a negative bank balance.
Reconciling is a way to compare and balance your bank statement with your personal records to ensure everything aligns. This is critical for tracking your expenses and maintaining healthy money management practices.
You should compare transactions, balances, and withdrawal amounts to your records and receipts, making sure it’s all correct. It’s also a good idea to double-check fees and taxes for errors or mathematical inconsistencies.
You can contact your bank or financial provider if you discover a discrepancy. That’s why it’s essential to review your bank statements regularly; if something’s wrong, you’ll have plenty of time to correct it and keep your budget on track.
Reviewing your bank statements and accounts helps you maintain control of your finances. With the proper tools, you can take your financial security to the next level.
The EarnIn app offers powerful tools to give you new opportunities and options with your money, like our free Credit Monitoring service. And our Cash Out tool lets you access your pay as you work — up to $100 a day and up to $750 every pay period — so you have what you need to keep moving forward.
Download the EarnIn app today and get your money moving at the speed of you.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
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