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WalletPrep worksheet · Money basics

How do you read a bank statement?

Name ____________________ Date __________

Key ideas

  1. Start + deposits − withdrawals − fees = end. If the ending balance on your statement doesn't match that math, something is missing or wrong.
  2. Report errors within 60 days. For electronic transfers, you generally have 60 days after the statement is sent to dispute an error or unauthorized charge.
  3. Fees and interest appear on the statement. Savings statements must show the interest earned and the APY earned. Fees are listed by type and amount.

Vocabulary

Credit union
A not-for-profit financial cooperative owned by its members, offering checking, savings and loans much like a bank.
APY
Annual percentage yield: the yearly return on savings, including the effect of compounding. Use it to compare savings accounts.

Work it out

Riley works at a hotel and gets paid twice a month. Her March checking statement starts at $1,240 and ends at $1,398. She checks that it adds up.

  1. Beginning balance
  2. Paycheck, March 1
  3. Paycheck, March 15
  4. Card, checks and bills
  5. Monthly fee
  6. Ending balance
  7. Charge she didn't recognize

Check yourself

  1. Your statement starts at $800, shows $1,500 in deposits, $1,650 in withdrawals and a $5 fee. What should the ending balance be?

    • A. $645
    • B. $655
    • C. $650
    • D. $2,295

  2. How long do you generally have to report an electronic transfer error after the statement is sent?

    • A. 7 days
    • B. 60 days
    • C. 1 year
    • D. There is no deadline

  3. What does a savings account statement have to show?

    • A. Your credit score
    • B. The bank's profits
    • C. Interest earned and the APY earned
    • D. Your employer's name

Your turn

Open your latest checking statement. Check that start + deposits − withdrawals − fees equals the ending balance, then read every line and flag anything you don't recognize or any fee you could avoid.

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Answer key

How do you read a bank statement?

Work it out

  1. Beginning balance$1,240
  2. Paycheck, March 1$1,075
  3. Paycheck, March 15$1,075
  4. Card, checks and bills− $1,980
  5. Monthly fee− $12
  6. Ending balance= $1,398
  7. Charge she didn't recognize$15
  1. Riley adds her deposits: $1,075 + $1,075 = $2,150. Then $1,240 + $2,150 − $1,980 − $12 = $1,398, which matches the ending balance.
  2. Reading line by line, she finds a $15 charge she doesn't recognize, plus the $12 monthly fee.
  3. She searches her email, finds no receipt, and reports the $15 charge the same week, well inside 60 days. She also asks how to avoid the $12 fee.

Check yourself

  1. A. $645 $800 + $1,500 − $1,650 − $5 = $645.
  2. B. 60 days Federal rules give you 60 days after the bank sends the statement showing the error. Waiting longer can leave you liable for later unauthorized transfers.
  3. C. Interest earned and the APY earned Under the Truth in Savings rules, a periodic statement must show the dollar amount of interest earned and the annual percentage yield earned for the period.