Last Update: February 15, 2023, 08:38 IST
Let’s take a look at some of the more important points about your monthly bank statement.
Let’s take a look at some of the more important points about your monthly bank statement.
A bank statement is an in-depth record of all transactions that have taken place in your account during a specific time frame. Bank statements are not difficult to understand, but they contain a lot of information which can be confusing at times. The transaction date and payee or payee information can be found next to each amount in the details. In a specified period, most of the financial institutions including banks send the statement to the customers by email, courier or postal services.
Generally, banks send statements for your accounts every month. If your bank account is having a large amount of transactions every month, then it is important to check your bank statement every month.
Let’s take a look at some of the more important points about your monthly bank statement.
To detect/avoid fraudulent transactions
Financial fraud has been on the rise in recent years around the world. The most important document that can be used as proof of such fraud is the bank account statement. By reviewing your account statement, you can easily identify fraudulent activities, which should be reported to your bank as soon as possible.
To ensure the flow of funds and validate transactions
With so many transaction modes available these days like UPI, net banking and cheques, it is easy to trace the money spent if one does not follow the practice of keeping all expenses in writing. Reviewing past statements at the end of each month can help you validate transactions and keep your monthly budget in check.
To monitor the charges levied by the banks
You might not be aware that banks levy charges for various types of transactions. You will be able to track any such charges only after reading your bank statement carefully. If the bank levies any charges which are not mandatory for you to pay, you may request the bank to refund such charges at the earliest. For example, some banks levy charges when you request for a second passbook, exceed the transaction limit on your debit/credit card or fail to maintain minimum balance in your account.
To track your spending by reviewing bank statements
If you are unable to save money despite having a solid income, your bank account statement can help you figure it out. The statement can be used to calculate total monthly recurring fixed expenses as well as additional expenses for the month. This will help you eliminate unnecessary expenses and change your spending pattern.
To actively invest idle funds
Most people nowadays have their money spread across multiple bank accounts. You can use idle capital to invest in a suitable investment vehicle and earn huge profits over the years. By evaluating your bank statements and investing your cash reserves, you can eventually build a bigger portfolio that will help you make more money.
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