Bank Statement – An Overview
All you need to know about your bank statement and its key features
- A bank statement is a detailed summary of all activity in your account across a particular period.
- It records both – deposits and withdrawals.
- Banks are mandated to keep records of your bank statements for a minimum of five years, even if you have closed your account.
- It is a great tool to help you keep track of your money.
- You can use bank statements as your income proof when you apply for a loan or mortgage.
A bank statement is a detailed summary of the income and expenditure related to your Current or Saving Account and is prepared by your bank every month. A bank statement allows you to track your spending and monitor any suspicious activity in your account. It also helps you analyse your spending patterns so that you can make prudent financial choices. Typically, banks send monthly statements to account holders on a particular date. But you can also generate your statement online via net banking or collect a physical copy from the bank.
Features & Benefits of Bank Statement
- A bank statement is also known as an account statement or transaction summary statement. Below are its features and benefits
- Bank statements are excellent tools to help you keep track of your money.
- It doubles as your proof of income when you apply for loans or mortgages.
- While filing IT returns, you can provide your bank statement as proof of your financial position.
What Does a Bank Statement Contain?
A bank statement usually contains the following details:
Account holder details
The statement includes the basic details of the individual or joint account holders – their names, residential address, registered mobile numbers and PAN Numbers.
It also includes specific details such as the bank name, customer number, account number and type of account.
The statement mainly comprises the transaction history – a record of all credits and debits with specific date and time stamps, amounts, payer, and payee descriptions, etc.
Steps to View the Bank Statement Online
- Login to your account through the net banking portal or mobile banking app of your bank.
- Look for the Account Statement.
- Select the period for which you would like to generate the statement.
- The bank will give you the option to either download the statement on your system or send it to your registered email address.
Bank Statement versus Mini Statement
Apart from a bank statement generated for a particular period, banks offer a compressed version of your account. This is called a mini statement. The mini statement gives you the details of the last five to ten transactions and your account balance. While a bank statement is more comprehensive, a mini statement gives you the more recent transaction details. Also, you cannot use a mini statement as income proof. You can get your mini statement through various modes like Mobile Banking, SMS Services, Quick Missed Call Banking facilities and Net Banking.
Most banks now allow you to choose how you wish to receive your monthly bank statements. You can either opt for a paper statement or apply online for an electronic bank statement sent to your registered email address. Updating your mobile number and email address is crucial so that you do not miss out on important alerts from your bank.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.