Investing What Is an Account Statement? An Account Statement Explained in Less Than 4 Minutes By Cassidy Horton Updated on July 31, 2022 Reviewed by Charlene Rhinehart Fact checked by Rebecca McClay In This Article View All In This Article Definition and Examples of an Account Statement How an Account Statement Works Benefits of an Account Statement Photo: Oscar Wong / Getty Images Definition An account statement is a document that shows all the transactions you've made in a financial account for a given time period. An account statement is a document that shows all the transactions you've made in a financial account for a given time period. Understanding how an account statement works can help you better manage your money and spot potentially fraudulent activity. Learn what’s on an account statement and how you can use the information to make better financial decisions for your situation. Definition and Examples of an Account Statement An account statement is a document that summarizes all your account activity for a specific timeframe. Alternate name: Statement of account, bank statement, billing statement The “activity” listed on your account statement varies depending on the type of financial account. For example: Bank account statement: includes a list of deposits, withdrawals, transfers, fees, and interest earned for the month. Credit card account statement: summarizes your purchases, minimum payment, interest charges, balance transfers, cash advances, and your credit score. Brokerage account statement: typically includes a summary of your portfolio value, dividends, capital gains distributions, and earned interest, along with a breakdown of all the securities you hold. Most financial institutions send out account statements on a monthly basis. However, they may send them out quarterly if you haven’t had account activity in a while. How an Account Statement Works When you make a transaction in your financial account, it gets recorded on your account statement. This could be for a transaction like withdrawing cash from an ATM, making a purchase with your credit card, or paying your car loan. Note Your account statement will show the date of each transaction, what type of transaction it was, and how much money was involved. For example, let's say you have a checking account and you made the following transactions over the course of one month: Jan. 1: Deposited $1,500 into your accountJan. 5: Paid $75 for gas with your debit cardJan. 7: Paid your rent with a check for $1,000Jan. 10: Paid $50 for groceries with your debit cardJan. 12: Paid your credit card bill for $100Jan. 15: Transferred $200 to your savings accountJan. 30: Paid your auto loan bill for $285 Your account statement would show all of these transactions, along with the running balance in your account after each one. Note Most financial institutions send out electronic account statements by default. These usually go to the email address on file. However, you can usually opt to receive paper account statements if you prefer, often for an additional fee. Account Statement Example Say you have a checking account with Wells Fargo. Here’s an example of what your checking account statement may look like: ACCOUNT SUMMARY Account Number: 123456789 Statement Period: Jan. 1 to Jan. 31 Beginning Balance on Jan. 1: $1,000.00 Credits/Deposits: $3,000.00 Debits/Withdrawals: $2,500.00 Ending Balance: $1,500.00 The Balance Benefits of an Account Statement Account statements are beneficial for two reasons: they help you manage your finances and they help you spot fraudulent activity. Manage Your Finances First and foremost, account statements help you manage your finances. By detailing all of your transactions in one place, you can: Keep an eye on your spendingTrack how much interest you’ve earned or accruedKeep up with your total balance For example, say you're learning how to budget and are trying to decide how much you should allocate in your dining out category. You could look at previous account statements to see how much you spend each month on average. Spot Fraudulent Activity Account statements are also a great way to spot fraudulent activity on your account. For example, if you see an unauthorized transaction for $50, it could be a sign your account has been compromised. By catching it early, you can dispute it with your bank and work with them to resolve the issue. Key Takeaways An account statement is a document that shows all the transactions made in an account for a given time period. Account statements can be received either electronically or by mail. You should receive an account statement for all financial accounts you have, including bank accounts, brokerage accounts, credit cards, loans, peer-to-peer payment apps, and more.Account statements can be a helpful tool for managing your finances and spotting fraudulent activity. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning! Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. U.S. Office of the Comptroller. “Is the Bank Required to Send me a Monthly Statement on my Checking or Savings Account?” U.S. Securities and Exchange Commission. “Better Understanding Your Brokerage Account Statement.”