How to Decipher Bank Statement Information

When you open up your monthly bank statement, it may appear confusing with a jumble of numbers and subheadings. However, if you break down the bank statement into smaller sections and know exactly how the statement is setup, you can read it easier. Additionally, you will be able to know how much money you have, and you will even be able to target any bad spending habits.

1. Determine which account is which. As more and more banks are choosing eco-friendly options of banking, you will begin to notice if you choose to have paper statements, all account information will be sent in one envelope and oftentimes on the same sheet of paper. Although every bank formats these notices differently, your checking account usually appears first, while money market accounts and other types of savings show up as secondary accounts after your main checking account.


2. Look at your withdrawals. Withdrawals are amounts of money that are taken away from your bank account. These transactions include when you swipe your card as debit or credit at a store, gas station or other location. Taking money out from the MAC machine, going to the bank to receive funds, transferring money to another account and any wire transfers fall under this category.


3. Analyze your credits to ensure you have earned and deposited all the money you are entitled to or have put into the account. When you deposit any money whether it is cash or check, it is considered a credit. Additionally, if you transfer money from one account to another, you will notice it on your statement as a credit. Interest accrued from checking, savings and money market accounts are categorized as a credit as well.


4. Calculate your interest earnings. Interest can be found on your statement under credits. This particular "deposit" amount comes from money the bank gives you as a reward for keeping money in their bank. Depending on your bank's specific practices, you may receive this money on both checking and savings, but not every bank offers interest checking. The amount you collect, is determined by your banks policies, but is always a percentage of the money you have. Therefore, you obtain more money if you have more money in your accounts. Additionally, certain times of accounts accumulate more than others.