Do you know what a bank statement is? How to compose it? In this post, we explain what this important document consists of, its main elements and function.
Bank Statement education
It issues free of charge and maintains control of all the operations that are carried out. That represents variations whether positive or negative in the account balance. For a selected period of time, all operations will be performed regardless of size.
Being able to consult the bank statement of each bank.
Data Available in Bank Statement
The data that the bank statement must contain are the following:
- Date of issue.
- Account holder.
- Previous balance.
- Account number.
- Movements (detailing date and amount).
- Final balance.
Weight of Dates in Bank Statement
The dates shown on the bank statement is very important and three types are handled specially.
- The issue date of the extract.
- Date of the movement or movements – That is when each operation is performed.
- Value date – Day from which interest begins to be credit into the account. Or, conversely, when a debt ceases to generate interest.
Read the Bank Statement Correctly
The bank statements reflect the reports of movements of the bank accounts of each person, since a savings account or a current account, investment or credit card have a summary of the handling of said products.
It is usually a document/voucher, that is not given the importance it has when it comes to managing personal finances. They do not usually review it and they do not even know that this piece of paper can save them from over-indebtedness.
As mentioned by the Organization for Economic Cooperation and Development ( OECD) , highlights that two out of every three young people in the world do not know how to manage their bank account or know how to read their bank statements, which can generate a risk of over-indebtedness.
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Understanding the Right Way
To understand how to read the bank statement, they must know which statement reaches their account each period, since it depends on whether it is a savings account, a checking account, a credit card or another product, billing varies. The bank statement can vary between different entities, so it is not always the same between MyCCPay official Site.
- Payment deadline: if they do not pay the value established before that date, they will default, generating surcharges.
- Total quota: it is the approved amount to make purchases or another type of transaction. The quota varies between each bank according to the debt capacity of each person and the behavior of payments during their credit life. Showing the available space after the purchases of the month.
- The quota of advances: It is the value approved by the entity to withdraw cash. And it depends on the quota of the credit card.
- Invoiced period: Dates between the extract transactions will be taken into account. The cut-off date is monthly on the 15th or 30th of each month.
- Summary of the total balance: It is one of the most important aspects, detailing the purchases made, advances and interests of the purchases. In addition to the date of the transaction, the place where they made the move and the number of installments deferred in the purchase.
- Minimum payment: The value paid each month for purchases made in the invoiced period. That payment includes:
- The delinquent balance is charged only if they have delays in previous months.
- Purchases of the month the first installments of purchases made in the cut-off period,
- The default interest generated by not paying the minimum payment on time in previous months
- Current interest paid when purchases are deferred is more than one installment.
- The advance fee charged when they do it
- The advance commission
- The handling fee
- VAT for reissue of the card
- The past purchase quota values the purchases deferred to more than one quota.
- Total payment: it allows not to pay interest. It is the total value of purchases with the card, it is better to pay it in full so as not to generate current interest for deferring to installments.
Type of Bank Statements
- The savings or checking account statement reflects the deposits or withdrawals made to the account in a certain period.
- The investment portfolio extract contains the performance and returns on the investment and data such as retention at the applied source.
Bank Statement Usage
So from different associations highlight the importance of knowing how to correctly handle the bank statement document, since it allows:
- Know the debt capacity
- What do they spend the money on and more if they need to save or pay debts
- Interest paid for the purchase
- Have an expense control.
Credit Card Statement
One of the statements that cause confusion is the credit card statement, which contains all the movements made during the month. Showing purchases, advances, taxes and interest they generate.
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