Financial literacy: What is a bank statement?
Key takeaways
A bank statement provides a clear overview of your financial transactions, better helping you monitor your financial status and track spending.
The purpose of a bank statement is to track income and expenses, spot unauthorized transactions, reconcile accounts, and assist in tax preparation.
You can access your bank statements through online banking, mobile apps, ATMs, or by visiting your bank branch.
In personal finance, making informed decisions is key to maintaining financial health. A bank statement plays a vital role in this process by providing a clear record of your transactions. But what is a bank statement exactly, and how can understanding it help you make better financial choices?
In this article, we'll break down the structure, importance, and practical uses of bank statements. Whether you're an experienced investor or just starting out, let's explore how bank statements can guide you toward financial success.
What is a bank statement?
A bank statement is a summary of all the financial transactions tied to a specific bank account over a set period, usually a month. It offers a clear overview of the account's activity, helping individuals and businesses monitor their financial status, track spending, and reconcile their accounts.
How to read a bank statement
Understanding the layout and components of a bank statement is essential for effectively interpreting its information and utilizing it for financial management. Though the specific format may vary slightly between banks, most statements share common elements:
- Account holder information: This section typically appears at the top of the statement and includes the account holder's name, address, account number, and type of account.
- Statement period: This indicates the specific timeframe covered by the statement, typically a month. It is crucial to verify that the statement period aligns with your expectations to ensure you are reviewing the correct information.
- Opening account balance: This reflects the amount of money in the account at the start of the statement period.
- Closing account balance: This represents the amount of money in the account at the end of the statement period, after all transactions have been accounted for.
- Deposits and credits: This section lists all incoming funds to the account during the statement period. This can include salary deposits, transfers from other accounts, interest earned, or any other credits.
- Withdrawals and debits: This section details all outgoing funds from the account during the statement period. This can include ATM withdrawals, debit card purchases, bill payments, bank fees, or any other debits.
- Interest earned: If applicable, this section will display the amount of interest earned on the account during the statement period.
- Fees: This section outlines any fees charged by the bank during the statement period. These fees can include monthly maintenance fees, overdraft fees, or fees for specific services.
What is the purpose of a bank statement?
A bank statement is more than just a transaction record; it’s a vital tool for managing personal and business finances. It offers key insights that help individuals and organizations make informed decisions and maintain financial health.
Key purposes of a bank statement include:
- Track income and expenses: Detailed records of all incoming and outgoing funds help with budgeting, identifying spending patterns, and ensuring your income covers your financial obligations.
- Spot unauthorized transactions: Regularly reviewing your statement helps catch fraudulent charges, errors, or forgotten subscriptions, allowing you to quickly address any issues.
- Reconcile accounts: Comparing your personal records with your bank statement ensures accuracy and helps resolve any discrepancies.
- Tax preparation: Bank statements provide essential documentation for income, expenses, and deductions when preparing your tax return.
In short, a bank statement is a valuable tool for understanding your financial habits, spotting potential issues, and making decisions that promote financial stability.
Bank statement example
Here is an example of a bank statement to illustrate the concepts we've discussed:
Bank Name
Account Holder: John Doe
Account Number: 123456789
Statement Period: January 1, 2024 - January 31, 2024
Date | Description | Withdrawals | Deposits | Balance |
Jan 1 | Opening balance | $1,000.00 | ||
Jan 5 | Direct deposit | $2,500.00 | $3,500.00 | |
Jan 10 | Rent payment | $1,200.00 | $2,300.00 | |
Jan 15 | Groceries | $200.00 | $2,100.00 | |
Jan 20 | ATM withdrawal | $100.00 | $2,000.00 | |
Jan 25 | Interest earned | $5.00 | $2,005.00 | |
Jan 31 | Monthly fee | $10.00 | $1,995.00 | |
Jan 31 | Closing balance | $1,995.00 |
This simplified example demonstrates how a bank statement tracks the flow of money in and out of an account, providing a clear picture of financial activity over a given period.
How to get a bank statement
Accessing your bank statement is typically a straightforward process, with banks offering several convenient options to suit different preferences:
- Online banking: Most banks have secure online platforms where you can log in and view or download statements anytime, anywhere with internet access.
- Mobile banking app: Many banks offer mobile apps that allow you to view and download statements directly from your smartphone or tablet, providing even more flexibility on the go.
- ATM: While ATMs are primarily used for cash withdrawals and deposits, some also offer the option to print out a concise version of your latest bank statement. This can be a useful option if you need a physical copy of your statement urgently.
- Bank branch: If you prefer in-person service or need assistance, you can visit your local branch and request a copy from a representative.
Keep in mind that available methods may vary depending on your bank and account type. We advise checking with your bank for detailed instructions on how to access your statements.
Raisin's account statements
At Raisin, we offer a platform for managing savings accounts across various banks. This can simplify financial tracking and management for users who hold multiple savings accounts.
Here's a summary of what you can expect from our account statements:
A single digital statement each month with all of your current account information, no matter how many of our partner banks and credit unions are in your portfolio
All transactions, including deposits and withdrawals made during the month
Interest earned, both for the month and for the year
Our customer service phone number (844-994-EARN) is always at the top in case you need assistance
Your unique Raisin Customer ID, which is how your deposits are tracked and remain distinct from other customers. This is also how your funds are protected by pass-through deposit insurance
Ready to take control of your finances?
Explore Raisin's banking guides filled with valuable insights to help you make informed financial decisions. From understanding different account types to maximizing your savings, our guides provide the knowledge you need to navigate the complex world of banking with confidence.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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*APY means Annual Percentage Yield. APY is accurate as of April 10, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.