Having a bank account may have been considered a luxury at one time, but nowadays it has become a common need for everyone. At the same time, the work of updating the passbook has now turned into checking the bank statement or balance. The record of transactions from the bank account in a fixed period is called a bank statement in financial language. However, most account holders do not know after how much time interval one should check their bank statement. Also, why is it very important to do so? Let us tell you about it...
What is a bank statement? When and why is it necessary to use it?
People usually check the bank statement every month, which gives information about all the transactions done in the bank account. In this, with brief information about the transaction, deposit, charge, withdrawal, and detailed information of the balance of the beginning and last day of a period, we can control our income or expenditure of the deposited amount, etc.
Sometimes it becomes necessary at the time of changing jobs, taking a loan making a contract, etc. Most account holders check the bank statement only when needed. However, this is not considered the right way.
How many times in a year should the bank statement be checked and why?
According to finance experts, the account holder should regularly use the statement feature provided by the bank. By knowing every small and big transaction from the account, apart from controlling your expenses, any kind of loss like fraud can also be avoided. At the same time, it also has many special benefits. However, most account holders do not know how many times the bank statement should be checked in a year. Also, why should this be done?
Many benefits of checking the bank statement
According to financial experts, every account holder should check the bank statement every month. This means that checking the bank statement at least 12 times a year is a good financial habit. Checking the bank statement at regular intervals also gives information about the bank charges levied on different types of transactions. Because the bank automatically deducts many types of annual charges from the account, including new or duplicate passbooks, updated ATMs, and account details. By checking the statement regularly, any unnecessary charge can be avoided.
Using bank statements as evidence helps in investment planning
Apart from this, many times we can remain aware through bank statements if we are unable to see the SMS or email update received from the bank on every transaction. Bank statement is also legally recognized in any criminal case like bank fraud. This important document can be presented as evidence. At the same time, in this era of investment, knowing about your funds and balance through bank statements helps in planning investments with higher returns.
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