Understanding a bank statement

When you open some bank accounts, your bank regularly sends you a record of how much has been paid into your account and how much you have spent. When you open some other accounts, you will be able to view and print similar records online. These records are called bank statements, and they help you to keep track of your finances.

You can also get up-to-date mini-statements from ATMs, these usually provide details of the last six transactions on your account.

Here’s an example of the sort of information you might find on a bank statement:

Mr Kyle Lawrence
12 Bank Court
North Walton
Norfolk
NR78 2RS
Account Number: 87654321
1 September 2009

Date	Details	Withdrawn	Paid in	Balance
2009	BROUGHT FORWARD			150.32
08 Aug	Right sounds Point of Sale (POS) Card Transaction	15.99		134.33
12 Aug	Wide-eyed cinema Point of Sale (POS) Card Transaction	6.50		127.83
15 Aug	Green Mobiles Direct Debit	20.78		107.05
20 Aug	Branch pay-in (cheque)		40.00	147.05
25 Aug	2Can Travel Point of Sale (POS) Card Transaction	23.99		123.06
27 Aug	Cash Withdrawal ATM	50.00		73.06
28 Aug	Cheque no. 342897	20.00		53.06
30 Aug	Green Cross Chemist Point of Sale (POS) Card Transaction	10.31		42.75
31 Aug	Branch pay-in (cheque)		22.50	65.25

Have a go at answering these questions about Kyle Lawrence’s bank statement: You might want to print out the statement above to refer to.

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How much did he have in his account on 9 August?
£

During the period shown on the bank statement, how much money has been paid into Kyle’s account?
£

What is the largest amount of money he withdrew from his account in a single transaction?
£

How much money did he take out of his account from the ATM?
£

How much has he got left in his account by 31 August?
£

He has written a cheque for £30.00 which is still to be debited from his account. What does he have available to spend?
£

Cheque numbers are printed in numerical order. What was the number of the cheque before the one that appears on the statement?

How much did Kyle spend in shops using his debit card?
£

What is the difference between the amount Kyle spent and the amount that was put into his bank account during the period of this statement?
£

How do you think Kyle’s statement helps him to manage his personal finances?

Please discuss!

If you get stuck go to the Glossary.

Your bank statement is a snapshot of your account when the statement was prepared. You may have signed cheques or spent other money after the statement has been sent out. Get into the habit of viewing a mini-statement or balance when you visit the ATM.
Remember if your account is overdrawn you may have to pay bank charges. However, the amount that the bank might charge you for being overdrawn is less if you have asked permission from the bank first.
If you think you will go overdrawn beyond any agreed limits, it is important that you contact the bank immediately to discuss this with them. This could help minimise any unauthorised borrowing fees and other charges.
You should always keep all bank and financial information in a safe and secure place, such as a locked drawer at home. This also applies to other valuable documents passports and share certificates.
Always effectively destroy any financial information that you no longer need, such as bank, credit card and finance statements and unwanted junk mail by shredding them. Do not place any of these items into household rubbish. This also applies to old credit or debit cards.