Finance

How To Understand Your Bank Statement [6 Tips- 2021]

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If you have just created your bank account just a few months ago and watching the bank statement for the first time then it might be confusing and wondering how to understand your bank statement. Even some people know a little bit about how to read the bank statement they don’t care, they delete the statement because they are not interested in the bank statement. If you are one or want to know some tips to read the bank statement, then let me ensure you that it is not that difficult as you think.

If you have a habit of watching all the bank statements then it is a good habit. You should read your bank statement because this will help you to understand all the monetary transactions made on your bank account and you will be alert about your transaction. Even you will find out small errors and unauthorized transactions from the bank statement so that your account will be exact. Just because you don’t understand a bank statement that’s why you don’t read it then don’t worry.

Today in this article we will guide you with 6 important tips on how to understand your bank statement, it is not difficult as you think. So, stay with us and read the full article mentioned below.

What is Bank Statement?

A bank statement is simply a detailed record of all the transactions made from your bank account. You can watch all the small to the big transactions made on your account and control your saving and spending, basically within the month.

Many years ago banks use to provide us a bank statement at the end of each month but now we can get all the bank statements from our mobile banking. Analyzing the bank statement, you can know where you spend and how much you saved on which particular date. And if you have a remark then you can clearly understand how you spend and when you saved (Date, Amount, Medium, and Remarks) so that you will be clear.

Even if you find something wrong with your bank account then you have to read your bank statement first so that you can know where and how.

But, before that, you have to know how to read the bank transaction and if you don’t know then below we have mentioned 6 tips to read and understand your bank statement, you can have a look if you don’t know.

Understanding Your Bank Statement [6 tips]

If you don’t know how to understand your bank statement or watching for the first time then this will be helpful for you to read your account statement.

Account Information

First of all, check your personal information so that you don’t watch other statements and get hyper. Check your full name, permanent address, and other information you have provided while opening your account. If you go to the bank then you should submit all the information related to your bank account to get a bank statement.

After your personal information, since we are seeing your account statement we need your bank account number and the date you want to check the statement.

If you navigate it through your mobile banking then you can easily go to the history and set the date from start to end to check the statement.

Read the all statement summary

Once you have the statement of your bank account on your hand. The first thing is just to look at the all detailed information you can see in the statement. And according to your set date, you will see all the statements.

You will see the balance you had on your account on the first date you have set, the total amount you have saved and deposited on your account, total amount withdrawal in the month, bank service fees (Deduction and added) to your account, and the total balance at the end of the date you have set.

Read all the statement summary properly.

Identify what you want to find on the Statement

Once you find all the information, now identify what you want to find on the statement. If you try to see all statement data at once then you might get confused and it will be hard to understand.

So first of all, check how much amount you have deposited and saved amount on different time. After that, check all the amount you have paid and withdraw from your account. And finally, check all the deducted and added amounts from your bank.

Transaction Summary

In the bank statement, you will find all the information detailed. You can see the description and date when you deposit and withdrawal amount.

First of all, check the description and see the amount is send or received and from where you made a transaction. If sent, check whom you sent the amount, and if received, check who sent you the amount and from where the transaction is made.

After that, check how much money you have sent or received, and check the date on what date how much amount has been transacted.

Finally, see all the transactions you have made on your account, either withdrawal or deposited.

Check for Errors

While reading the transaction summary, you might have noticed some errors in the total balance.

The first thing to identify errors on your bank account is to read all the statements properly and notice every amount either you have deposited, withdrawn, or deducted and included in your account by the bank.

After that, tally with the main total balance, if the transaction made and the total balance doesn’t matched then think there is some error in your bank account.

Trace spending patterns

If you find any error in the statement then your should trace everything like how the amount is deducted/added, whom/who sent or received it, how much amount, sent/received date, and other information you can see in the statement detailed.

And if you find yes there is an error in your bank account then you can contact the bank and talk with the bank about the transaction made. They will try to solve your problem.

So, that’s it these are the six things you should do while reading the bank statement and you will understand the statement but if you want to see a yearly statement then this is not the way because there are many transaction histories so it’s quite difficult to read it.

How to Find and Correct Mistakes on Bank Statement

If you want to find mistakes and correct them on the bank statement then here are the step to find out and correct mistakes on the bank statement.

  • First of all, read the information, check personal and account information to make sure that’s your account statement.
  • After that, read the transaction summary. First, check all expenditures and deposits.
  • Tally your calculation with the total balance.
  • If you see any error recheck the statement summary, check the date, place, and amount you sent or received.
  • Sometimes some amount is deducted by the bank for its services.
  • So, if you find any error in the bank statement then you can contact the bank, your agent, or auditor. They will make you understand and help to solve the error.

In Conclusion

Here in this article, you will find six tips to read your bank statement and understand your bank transection and with that, you will also be able to find out errors on your account and solve them. Even you are old or new who dont know how to read the bank statement then this article is for you you will find everything you should know about bank statements.

Besides if you have any queries or suggestions regarding this article then you can leave us a comment in the comment section below.

And for more articles and helpful guides on finances, you can go to the Finance Tips from our official website Online Help Guide.

Thank You.

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