Even if you receive one every month, you may still find yourself wondering what a bank statement is and why it matters. The numbers and terms can feel confusing, especially if you’re new to banking or managing finances in a new country.
Understanding how to read a bank statement is a simple, practical way to take charge of your money. By knowing what each section means, you can track your spending, spot errors, and use your statement as proof of income or address when needed.
This Remitly guide explains what a bank statement is, what information it includes, and how you can use it to make financial decisions with confidence.
What is a bank statement?
A bank statement is a summary of all the activity in your bank account over a specific period—usually a month. Your bank issues these financial statements which track all money coming in (credits) and going out (debits).
Think of it as a report of your account’s activity. Every deposit, withdrawal, payment, or fee is recorded so you have a clear picture of your finances.
Paper vs. digital statements
Bank statements are available in both paper and digital formats. Many banks still mail paper statements to your home, giving you a tangible record you can keep and reference any time. Some people prefer this traditional method because it feels more concrete and secure.
You can access digital statements through your bank’s website or mobile app. They are convenient, secure, and simple to store without creating clutter. Many banks allow you to download statements as PDFs, which you can either keep digitally or print if necessary.
Both formats contain the same information, so the choice comes down to your personal preference and how you like to manage your records.
What’s on a bank statement?
A bank statement may look complex at first, but it is organized in clear sections. Here’s a breakdown of what you’ll typically find:
1. Header information
The top of your statement contains basic but important details:
- Your personal information: Name, address, and account number of the account owner.
- Bank details: Name of the bank, branch information, and contact information.
- Statement period: The start and end dates for the transactions shown, for example, September 1 to September 30, 2025.
This section ensures the statement is tied to your account and tells you how to contact the bank if you have questions.
2. Account summary
This section provides a snapshot of your account over the statement period. Key items include:
- Beginning balance: The amount of money in your account at the start of the period.
- Total deposits/credits: All money added to your account, including paycheques, transfers, or refunds.
- Total withdrawals/debits: All money taken out of your account, such as bills, ATM withdrawals, or online purchases.
- Ending balance: The final amount in your account at the end of the period.
The account summary is your quick glance guide to understand how your account changed over the month.
3. Transaction details
This is the main part of your financial statement. It’s a line-by-line list of every transaction that occurred during the statement period. Although it can look overwhelming at first, reviewing the transaction history gives you the clearest view of your financial habits and helps spot any unusual activity.
In each transaction, you’ll see:
- Date: When the transaction happened.
- Description: Who or what the transaction was for, such as “Tim Hortons,” “Paycheque deposit,” or “E-transfer to John.”
- Amount: Shows whether money was taken out (debit) or added (credit).
Common transactions may include:
- Paycheque deposit: Money your employer deposits.
- Bill payment: Utility bills, rent, or subscriptions.
- E-transfers: Sending or receiving money from friends or family.
- Debit card purchases: Everyday spending, such as groceries or coffee.
- ATM withdrawals: Cash taken out of your account.
The other transaction you might see is fees. Most fees are recorded directly within the transaction list rather than in a separate section. Examples include:
- Monthly account maintenance fees
- ATM withdrawal fees
- Overdraft fees
- Foreign exchange fees for transactions in another currency
Some banks may also include a total of all fees for the statement period in the account summary, which provides a quick view of costs.
4. Notes or messages
Your bank may also include a section with messages for you, such as:
- Updates to account terms or policies
- Promotions or offers
- Important alerts about your account
Even though this section is brief, reading it will help you stay informed about changes that might affect you.
Why are bank statements important?
Bank statements are practical tools that help you understand, track, and manage your money. When you take the time to review your statements, you gain insight into how you spend, how much you save, and where you might need to adjust your habits.
Tracking your spending
For many people, particularly those navigating finances in a new country, a bank statement can serve as a roadmap for financial decision-making.
In fact, 62% of Canadians say they track their spending by reviewing their bank statements at least once a month, highlighting how valuable these documents are for staying on top of day-to-day finances.
By reviewing your spending each month, you can see patterns emerge, such as noticing subscriptions you no longer use, or small daily purchases that add up more quickly than expected. This awareness allows you to adjust your budget, prioritize your spending, and plan for future expenses with confidence.
Spotting errors or fraud
Bank statements are also essential for spotting mistakes or potential fraud. Banks occasionally make errors, and unauthorized transactions can occur. By examining your statement closely, you can identify double charges, payments you don’t recognize, or other discrepancies, and report them promptly. Catching these issues early helps protect your money and prevents more serious problems down the line.
Proof of income or address
Beyond tracking spending and ensuring accuracy, financial statements often serve as proof of income or address. Landlords and lenders often request them when you rent an apartment, apply for a mortgage or loan, or need to provide verification for visas and other official processes. Because they show a reliable record of your financial activity, they are trusted by landlords, lenders, and government agencies alike.
Taxes
Finally, statements are valuable for tax purposes. They provide a record of income, expenses, and deductions, helping self-employed individuals, freelancers, or anyone with business-related transactions to ensure their tax filings are accurate. Keeping these records organized can save time and help you avoid mistakes when tax season arrives.
How to get your bank statement
Getting a copy of your bank statement is simple and there are a few ways to access it. Most banks let you access between 12 and 24 months of bank statements online, depending on the institution.
If you need older statements, you can usually request them directly from your bank, though a small fee may apply. Having access to past statements can be especially important for legal, immigration, or tax purposes.
Online banking
Most banks offer digital statements that you can view or download. Steps usually include:
- Log in to your bank’s website or mobile app.
- Find the section labeled “Statements,” “Document,” or “eStatements.”
- Select the month you need and download the PDF.
Digital statements are convenient, easy to store, and environmentally friendly.
In-person at a bank branch
If you prefer a physical copy, you can request one at your local branch:
- Bring your ID and bank card.
- Ask the teller for a printed copy of your statement.
- Keep in mind that some banks may charge a small fee for printed statements.
By mail
Many banks automatically mail paper statements unless you opt for digital delivery. Make sure your address is up to date to receive them reliably.
How to read and use your bank statement
Understanding your statement can feel overwhelming at first, but following these steps makes it simpler:
Step 1: start with the account summary
Reading your bank statement may feel overwhelming at first, but a simple approach can make it manageable. Start with your account summary to check that your beginning and ending balances align with your own records.
Then review each transaction to confirm deposits are accurate and withdrawals, payments, and transfers are familiar. Take a close look at any fees and make sure you understand what they are for.
Finally, be vigilant for anything unusual, such as duplicate charges or transactions you don’t recognize, and contact your bank if you notice anything suspicious.
Making this a regular habit can help you stay on top of your finances, detect errors early, and gain confidence in managing your money.
Common mistakes when reading bank statements
While reviewing your statement is straightforward, some common pitfalls can cause confusion or financial slips.
- Ignoring small charges: Small amounts can add up over time, especially subscription fees or service charges.
Overlooking recurring subscriptions: Many people forget about old memberships or apps that still bill monthly. - Not reconciling with budgeting apps or personal records: If you only glance at your statement, you may miss mismatches with your own budget or tracking system.
Avoiding these mistakes ensures you make the most of your bank statement as a financial tool.
Tips for managing your bank statement
Going paperless can help reduce clutter and make your statements easier to organize. At the same time, keeping copies of important statements for taxes, loan applications, or personal tracking is a smart practice.
Many people also find it helpful to review each new statement as soon as it arrives, so they can spot issues quickly and maintain a clear understanding of their financial situation.
By using these strategies, you can feel more confident about your finances and avoid surprises.
Take control of your financial future
A bank statement is much more than a record of transactions; it’s a tool that helps you make informed decisions about your money. By understanding key parts like the account summary, transaction details, and fees, you gain a clearer view of your finances and can manage them more confidently.
If you’re managing finances in a new country, reviewing your statement each month can help you feel more secure and confident as you track spending, spot errors, and make informed decisions about your money.
FAQs
How often are bank statements issued?
Most banks issue monthly statements, though digital statements can often be accessed more frequently via your app or online account.
Are digital statements secure?
Yes, banks use encryption to protect digital statements, but it’s a good idea to access them over a secure internet connection and avoid shared devices.
What should I do if I find an error?
Report it to your bank immediately. Most banks allow a window to dispute incorrect charges.
How long should I keep my bank statements?
Keep statements for at least one year. If you need them for taxes, loans, or other legal purposes, retaining them for longer is wise.
What information is on a bank statement?
A bank statement shows a record of all activity in your bank account during a specific period. It typically includes your personal and bank details, the statement period, your beginning and ending balances, and a summary of deposits and withdrawals.
How do I get a bank statement?
You can access your bank statement in several ways. The most common is through your bank’s website or mobile app. Navigate to the “statements” section and download the PDF for the month you need. You can also request a physical copy at your local bank branch by showing your ID and bank card.