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You bank personal financial statement is an official document presented to you by your bank, which gives you a clear picture of all the activity in your account for the term covered by the statement. Depending on the type of account you have, most banks will provide a monthly statement, while others will generate one quarterly, or even semi-annually. You can usually request your bank for customized statement if required. However, the bank may charge a small fee for processing this request.
There is a lot of information on these statements that you need to fully understand:
Expenditure and Withdrawals
On your personal statement you will see all the withdrawals made from your account in the form of cash, check or transfers. This will help you organize your monthly expenses as you would know exactly how much money you pulled from your account in a given month. It will cover everything you paid for such as groceries, gas, bills, etc. Some banks offer to categorize your expenditure within the major categories free of cost.
Deposits
On your statement you will also see all the deposits that you have made to your account over the relevant period. These deposits can be in the form of cash, checks or even transfers incase your employer is paying your salary directly by transferring the amount to your bank account. You can again organize your expenditures based on the deposits that you have received.
Consolidated Account Information
Normally people have multiple accounts in their banks. Most common are checking accounts that they primarily used to make daily expenses, and payment of utility bills, credit cards, etc. Individuals usually also have a savings account in which people will store their excess cash and earn some interest on it. Your personal financial statement will have information of all the different types of accounts that you might be running with your bank. Other information you may see on your statement are details related to any credit lines, mortgages and bank credit card you may have with the same bank.
The main purpose of these statements is to show you the total activity related to your accounts with the bank as well as and the starting and ending balance of all these accounts for the given period of time. It is very important that people fully understand all the information on these statements, as it is essential in not only managing your expenditures but also planning for future expenditures. Make sure you scan your statements to verify all transactions and charges to your account to prevent from being liable for any unauthorized charges on your accounts.
Understand Your Bank Personal Financial Statement
