Definition
Bank Statement is an official document provided by a bank summarizing all activity in a bank account over a specific period, including deposits, withdrawals, fees, interest earned, and the account balance.
Why It Matters
Bank statements provide account holders with transparency, help track spending and income, reconcile transactions, and are often required for audits, loan applications, or financial planning.
Example
A customer receives a monthly bank statement showing a starting balance of $2,000, deposits totaling $1,500, withdrawals totaling $1,200, fees of $20, and an ending balance of $2,280. This summary helps the account holder verify that all transactions are accurate.