Bank Statements Law and Legal Definition
A bank statement is a record explaining financial conditions of a bank account during a particular period of time. A bank statement evidences all financial transactions offered by a bank in a given period of time in an account. The transactions recorded in a bank statement include deposit, withdrawal, ATM withdrawal, checks, deduction from account and bank charges or fines.
Different financial institutions adopt different methods to record financial statements. Most of the banks provide a monthly statement. A bank statement contains a beginning and ending balance i.e., balance at the beginning of a month and balance at the end of a month. The statement reveals all the transactions within the specific period with accurate date of transaction. Some banks include in the statement the interest earned in an account. In modern world, most of the banks provide online bank statements.
The advantages of securing a bank statement are:
- A consumer can easily find out mistakes committed by a bank in his/her account;
- A consumer can trace out if any illegal operation occured in his/her account;
- A consumer can determine his/her expense and balance; and
- A consumer can check his/her personal records.