What Is a Bank Statement? Fees, Purpose & Explanation

A bank statement is a detailed summary of your account’s financial activities, typically issued monthly by your bank. It shows deposits, withdrawals, transfers, and balances, helping you track your money and spot any errors or fraud. Whether you’re managing personal finances or preparing for a loan application, this document is essential for understanding your financial health.

Ever wondered how a bank statement can simplify budgeting and streamline financial planning? Let’s uncover its benefits, requirements, and why it’s a key tool for your financial success.

Table of Contents

What Is a Bank Statement?

A bank statement is a monthly record provided by your bank that shows all the transactions in your account. It includes details like deposits, withdrawals, purchases, and transfers, along with the starting and ending balances for the period. This document helps you monitor your spending, verify payments, and detect unauthorized transactions.

Bank statements are important for financial planning and are often required for loan applications, renting property, or proving income. Most banks offer both paper and digital statements, making it easy to access and store them. Regularly reviewing your bank statement ensures your finances stay on track and helps you identify areas where you can save.

What is the purpose of a bank statement?

A bank statement serves as a vital financial record, offering a detailed summary of all transactions in your account over a specific period. Its primary purpose is to help account holders monitor their spending, verify deposits and payments, and detect unauthorized transactions.

Whether you’re budgeting, applying for a loan, or preparing taxes, a bank statement provides the clarity needed to manage your finances effectively.

How a Bank Statement Works

A bank statement lists all activities, including deposits, withdrawals, transfers, and fees, along with the opening and closing account balances. It’s typically generated monthly and can be accessed via mail or online banking platforms. Each entry includes a date, description, and amount, making it easy to track financial trends and discrepancies.

By comparing your personal records with your bank statement, you can catch errors or fraudulent activity quickly. For businesses, these statements are essential for auditing and reconciling accounts. For individuals, they’re handy for understanding where your money goes and ensuring nothing is overlooked. Regularly reviewing your bank statement helps maintain financial health and avoid overdraft fees or missed payments.

Types of Bank Statements

Bank statements come in two main types: electronic bank statements and paper bank statements. Both serve the same purpose providing a detailed record of your financial transactions but differ in format and accessibility.

Electronic Bank Statements

An electronic bank statement is a digital version of your account summary, accessible through your bank’s online or mobile platform. They are eco-friendly, easy to store, and can be accessed anytime. Many banks send email notifications when a new statement is available, ensuring you never miss an update. Electronic statements also reduce clutter and offer quick search options to locate specific transactions.

Paper Bank Statements

Paper bank statements are mailed to your address and provide a physical copy of your account activity. These are useful if you prefer keeping hard copies for records or need them for official purposes like loan applications or legal documentation. However, they can take longer to arrive and may incur additional fees at some banks.

Choosing between electronic bank statements and paper statements depends on your preference for convenience or tangible records. Both formats ensure you stay informed about your financial activities.

Benefits of a Bank Statement

A bank statement is more than just a record; it’s a powerful tool for managing your finances. By reviewing your statement regularly, you can track your spending habits, budget effectively, and spot unauthorized transactions quickly. It also serves as proof of income or financial stability when applying for loans or renting property.

Key benefits include:

Tracking expenses: Understand where your money goes to improve budgeting.
Fraud detection: Identify unauthorized transactions or errors early.
Financial planning: Monitor savings and spending to set realistic financial goals.
Proof of income: Essential for loan applications, leasing agreements, or tax purposes.
Reconciliation: Compare your records with the bank’s to ensure accuracy.
Convenience: Digital statements are easily accessible and eco-friendly.

Using your bank statement wisely can lead to better financial health and smarter money management decisions.

How Can I Get a Bank Statement?

Getting a bank statement is easy and can be done in multiple ways. Most banks offer online access through their website or mobile app, where you can download or view electronic statements. If you prefer physical copies, you can request one by visiting your bank branch or contacting customer service. Some banks even offer the option to mail paper statements monthly for a fee.

Steps to get a bank statement:

Online access: Log in to your account and download the statement.
Bank branch: Visit your bank to request a printed copy.
Customer service: Call your bank and ask for the statement to be mailed.

What Is the Difference Between a Bank Statement and a Transaction History?

While both a bank statement and transaction history provide financial details, they serve different purposes.

Bank statement: A formal document issued monthly that summarizes all transactions and balances for a specific period. It’s used for official purposes like loan applications.
Transaction history: A real-time, detailed list of account activities without a specific format or official approval. It’s useful for quickly checking recent activity but may lack the summary and polish of a bank statement.

Can Anyone Check My Bank Statement?

Your bank statement is private and cannot be accessed by anyone without your consent. Banks are bound by strict privacy laws, ensuring your financial information remains secure.

Who can access it?

You, as the account holder.
Authorized individuals, if you grant permission.
Financial institutions or entities you share it with, such as for loan applications.

Never share your banking details with unverified parties to avoid fraud or identity theft. By safeguarding your bank statement, you maintain control over your financial data and protect your privacy.

Bank Statement vs Bank Certificate

A bank statement is a detailed record of transactions over a period, while a bank certificate is an official document summarizing account details like balance and ownership for specific purposes.

Aspect	Bank Statement	Bank Certificate
Purpose	Tracks transactions and balances	Verifies account ownership or balance
Format	Detailed with dates and descriptions	Brief and official summary
Issued for	Financial management, loan applications	Visa, audit, or legal requirements
Frequency	Monthly or upon request	On-demand
Details Included	Transactions, deposits, withdrawals	Account holder’s name, balance
Cost	Often free (digital); fee for paper copy	Usually incurs a fee

Why is MBI SETL Charge on Your Bank Statement?

The MBI SETL charge appears on your bank statement when you’ve made a purchase through a service or platform that processes payments via MyBankInfo (MBI). It is commonly linked to subscriptions, online services, or third-party billing providers. The description “SETL” refers to “settlement,” indicating the completion of a payment transaction.

If you see an MBI SETL charge, it’s crucial to review your recent transactions or subscription services. This ensures the charge matches a payment you authorized. If you’re unsure about its origin, checking with the merchant or contacting your bank can clarify the situation.

Is MBI SETL Charge a Scam or Fraud?

The MBI SETL charge isn’t necessarily a scam or fraud. In most cases, it’s a legitimate transaction linked to an authorized service. However, unauthorized charges can occur due to mistakes or fraudulent activity.

What to do if unsure:

Review your recent payments and subscriptions.
Contact the merchant for details.
Notify your bank immediately if the charge is unfamiliar or suspicious.

By monitoring your bank statement regularly, you can identify unauthorized charges early and protect your account from fraud.

Read: What Are the Fenix Internet LLC Charges on Your Bank Statement?

What to Do if You Find an MBI SETL Charge on Your Financial Statement or Credit Card?

If you find an MBI SETL charge on your financial statement or credit card that you don’t recognize, follow these steps:

Review recent transactions: Check your recent purchases, subscriptions, or services to see if the charge matches any of them.
Contact the merchant: If the charge is linked to a service or subscription, reach out to the merchant for clarification.
Check for recurring payments: If it’s a subscription or recurring payment, make sure you haven’t forgotten about it.
Notify your bank or card issuer: If the charge still seems unfamiliar, report it to your bank or credit card provider. They can help investigate and may issue a refund if it’s a mistake or fraudulent.
Dispute the charge: If you believe it’s a fraud or error, file a dispute with your bank or card issuer immediately to protect your finances.

Regularly monitoring your financial statement helps catch unauthorized charges early and prevents further issues.

CONCLUSION:

Spotting an MBI SETL charge on your financial statement or credit card can be concerning, but it’s often linked to legitimate transactions. By reviewing your purchases, contacting the merchant, and notifying your bank if needed, you can quickly resolve any confusion. Staying vigilant and regularly monitoring your bank statement helps protect you from unauthorized charges and fraud. Always act swiftly to ensure your financial security and keep your accounts in check.