Bank statements are in-depth records of all the transactions that took place in your account during a specific time frame. Bank statements aren’t difficult to understand, but they do include a lot of information that might be perplexing at times. The transaction date and the payer or payee information may be found next to each amount on the statement. At a specified period, the majority of financial institutions, including the banks send statements to the customers by email, courier or postal services.
Generally, the banks send the statements for your accounts every month. It’s important to check your bank statement each month if you have a sizeable amount of transactions taking place from your bank account every month.
Let’s have a look at some of the more important points about your monthly bank statements.
To spot/avoid fraudulent transactions
Financial fraud has been on the rise in recent years all across the world. The most essential document that may be used as proof of such fraud is a bank account statement. By reviewing your account statement, you may readily identify fraudulent activities that must be reported to your bank as soon as possible.
To ensure flow of funds and to validate transactions
With the multiple transaction modes available these days like UPI, net banking and cheques, it is easy to lose track of money spent if one does not follow the practice of keeping all expenses in writing. Reviewing past statements at the end of each month might help you to validate the transactions and keep your monthly budget in check.
To monitor the fees collected by the banks
You might not be aware that banks impose fees for a variety of transactions. Only after carefully reading your bank statement you will be able to track any such charges. If the bank imposes a fee that you are not mandated to pay, you can urge the bank to reverse such charges at the earliest. For instance, some banks impose fees when you request a second passbook, exceed the transaction limit on your debit/ credit card or fail to maintain a minimum balance in your account.
To track your spending by reviewing the bank statement
If you are unable to save money while having a solid income, your bank account statement might help you figure out why. The statement may be used to calculate the total monthly recurring fixed expenses as well as the month’s excess spending. It will assist you in eliminating unnecessary expenses and altering your spending patterns.
To invest the idle fund proactively
Most people nowadays have their money spread across multiple bank accounts. You may utilise the idle capital to invest in a suitable investment instrument and earn a larger return over the years. By evaluating your bank statements and investing your cash reserves, you may eventually build up a sizeable portfolio that will help create more money.
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