What is a bank statement and why is it important to review?

What does a bank statement look like?

Bank statements, whether electronic or paper, show a clear list of account activity for a set period, usually a month. They are a record of income and spending that helps people balance their accounts.

While the layouts differ between banks, all statements generally include key personal finance components such as:

• Account details
• Opening and closing balance
• List of transactions (deposits, withdrawals, card payments, transfers)
• Charges or interest

Types of bank statements

There are two main types of bank statements: electronic and paper. They each have their benefits, which are broken down below:

Electronic statements

E-statements are digital copies of your statement available in online banking or your bank’s app. They are usually in PDF format, so you can view, download, or print them.

Benefits include:

• Instant access: E-statements let you view past statements quickly, often going back several years.
• Eco-friendly: Reduces paper use.
• Secure: Protected by login details. Many banks also send alerts when a new e-statement is ready.

Paper statements

Paper statements are printed copies sent to your address. While more people now choose digital, paper is still available. Delivery does take longer as they rely on the post.

Benefits include:

• Physical record for filing or reference
• Official use: Some organisations still ask for stamped paper statements.

Bank statement abbreviations

Here are common UK bank statement abbreviations and what they mean:

• ATM: Automated Teller Machine (Cash withdrawal or deposit)
• BGC: Bank Giro Credit (BGC on a bank statement refers to a payment credited to the account, often from a third party or a direct payment into the account at a branch)
• BP: Bill Payment (A payment made to a company or individual from the account)
• CHG: Charge (A fee applied by the bank, e.g., for an unarranged overdraft)
• CR: Credit (Money paid into an account)
• DD: Direct Debit (An automatic payment set up to pay a company, where the amount and date can vary)
• DR: Debit (Money taken out of an account)
• DIV: Dividend (Payment from shares)
• DPC: Direct Payment Credit (Similar to BGC, a direct payment into an account)
• FEE: Fee (A charge applied by the bank)
• FPO: Faster Payment Outward (FPO on a bank statement refers to when users use the instant payment method to send money to someone)
• INT: Interest (Interest earned on savings or charged on borrowing)
• POS: Point of Sale (A payment made using a debit card in a shop or online)
• SO: Standing Order (An automatic, regular payment of a fixed amount to another account)
• SPB: Faster Payment (A payment made instantly or near-instantly to another bank account)
• TFR: Transfer (Money moved between a user’s accounts or to another account)
• TXN: Transaction (A general term for any activity on an account)
• WDL: Withdrawal (Money taken out of an account, usually cash)

How to get a bank statement

If you have opened a bank account, most banks offer online banking portals, mobile apps, and paper copies when requested.

Bank statements can be accessed in several ways:

Online banking

1. Log in with your username and password
2. Go to “Statements” or “Documents”
3. Select a month or year and view or download the PDF

Mobile app

1. Log in using your details or biometrics (face ID, fingerprint)
2. Find “Statements” in the menu
3. Tap to view or download

By post

• Automatic delivery: Set up with your bank to receive them regularly
• Request a copy: Order through online banking, phone banking, or in a branch
• Delivery time: Usually within 5–10 working days

Why is it important to review bank statements?

Checking bank statements is a good money habit. It helps you stay in control, spot fraud, and keep to your budget.

Benefits include:

• Fraud detection: Catch unauthorised transactions early
• Error correction: Fix bank mistakes, like duplicate charges
• Budgeting: Track where money is going
• Financial planning: See income vs. spending
• Proof of payments: Useful for bills or loans

Not checking statements can lead to overspending, debt, or missed errors.