An
account statement or a
bank statement is a summary of all
financial transactionA financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
s occurring over a given period of time on a
deposit accountA deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the...
, a
credit cardA credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
, or any other type of account offered by a
financial institutionIn financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
.
Bank statements are typically printed on one or several pieces of paper and either mailed directly to the account holder's address, or kept at the financial institution's local
branchA branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution offers a wide array of face-to-face and automated services to its customers....
for pick-up. Certain ATMs offer the possibility to print, at any time, a condensed version of a bank statement.
Historically, bank statements were produced quarterly or even
annuallyAn annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance...
. Since the introduction of computers in banks in the 1960s, bank statements are generally produced every month. Lesser frequencies are nowadays reserved for accounts with small transaction volumes, such as
investmentInvestment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
s or
savings accountSavings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...
s. Depending on the financial institution, bank statements may include certain features such as the cancelled
chequeA cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
s (or their images) that cleared through the account during the statement period, promotional
insertIn advertising, an insert or blow-in card is a separate advertisement put in a magazine, newspaper, or other publication. They are usually the main source of income for non-subscription local newspapers and other publications...
s or important notices about changes in fees or
interest rateAn interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
s. Thanks to
online bankingOnline banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
, financial institutions offer virtual statements, also known as paperless statements or e-statements. Due to
identity theftIdentity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...
concerns, a virtual statement may not be seen as a dangerous alternative against physical theft as it does not contain tangible personal information, and does not require extra safety measures of disposal such as
shreddingA paper shredder is a mechanical device used to cut paper into chad, typically either strips or fine particles. Government organizations, businesses, and private individuals use shredders to destroy private, confidential, or otherwise sensitive documents...
. However, a virtual statement can be easier to obtain than a physical through computer fraud, data interception and/or theft of storage media.
It should be noted, although popular for customers, paperless statements are a way for a bank to reduce their costs.