Bank Statement | Reading the Bank Statement

You would have been cognizant to the term that what a bank statement is. So, let’s proceed forward so that we can know about how to read the bank statement. The next step is that you should know that what are the components of the bank statement and what do the parts of bank statement means.

Components of Bank Statement

The bank statements include very important details that you should focus on. Following are the parts of bank statement and how you should read them.

Starting and ending balances:

The very first thing that you see on your bank statement is starting and ending balances. This displays the amount that you had in your account at the beginning of the billing period and the amount left in the account by the end of the billing period. In case, if you want to check that what the progress of your account is, then, this is the part to be focused on.

Transactions:

The part of transactions include every transaction that you made last month. This will help you to know that from where the money comes and where the money goes. The transactions include Deposits, Withdrawals, and Fees, Interest or any other charges.

• Deposits: Here comes the deposits part that encompass the amount added to your account. So that includes the direct deposits, any cash or checks that you deposited on your account. And other credits that have added to your account. What information it can provide is about your monthly income. And how much money left in your account after all the deductions and tax.
• Withdrawals: You will be notified about the withdrawal after every withdrawal. You will be keep informed about every transfer for the reason that be very careful while reading this part and check this part thoroughly. By analyzing this part, you can check your spending and can be careful about this in future. The withdrawals can be of the money that you spend with your debit card, ATM withdrawals and bill payments at ATM.

• Fees: Woah, here comes the fees that can act as predator to your savings thus eating them. Do check carefully that whether you have any fee of overdraft or any other charges.
• Interest earnings: If you have been earning interest from savings account, then, you should check this part to see the earnings on your statement.
• Other transactions:This part includes other transactions history that can be returned deposits, outstanding checks or any other transaction. Read this par very carefully as you can be informed about the significant activities performed to your accounts.

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