Money Management: Bank Account Statements

Money Management: Bank Account Statements

Although most people are familiar with their bank account statements, many of the people who come to us do not fully understand the monthly statements they receive from their banks.

Since reading bank statements is a Must for good money and debt management – we have put together the following guide. The simplified statement below is a combination of several popular Canadian bank statement styles.

If, after reading this guide, you are still unable to fully understand your bank statement, we strongly recommend that you make an appointment with your bank. Take your bank statement with you and have them show you exactly how their statements work.

It is your money – you have a right (and a responsibility) to understand how it is being handled.

HowToReadBankSatement



The Balance on the right side of the statement is a running total of how much money is in your account. With each activity, the Balance is adjusted. If money goes into the account, it increases and if money goes out of the account, the Balance is decreased.

  1. Opening Balance – how much money was in your account at the end of last month. Check this amount against the previous month’s Closing Balance.
  2. Direct Deposit from your employer – always check this amount with your paystub.
  3. ATM Cash Withdrawal – when you take cash out at a bank machine that does not belong to your bank – there is an extra charge (as shown in Fees – Interac charge).
  4. Using you debit card to buy something, in this case at The Bay.
  5. Depositing a cheque someone gave you – using one of your bank’s instant teller machines.
  6. Taking cash out at one of your bank’s instant teller machines.
  7. Money for a cheque you wrote (#0045-230399) is taken out of your account.
  8. Automatic withdrawals are payments you have pre-authorized. Always check pre-authorized amounts against the utility/phone statements you receive.
  9. Monthly Bank Services Fees/Plan are what you have agreed to pay your bank for handling your checking account.
  10. Closing Balance – how much money was in your account at the end of the month – this amount will be the Opening Balance on the following month’s account.

Every month when you get your bank statement, you need to take the time to make sure it is right – it is your money and it deserves your attention.

Note: Funds on Hold

A situation that we have seen (and experienced ourselves) is when you deposit a cheque into your account – but the amount of the cheque is not ‘available’ for several days. Sometimes called ‘Funds on Hold’, it means that your bank will not actually let you take the money out of your bank account until the cheque has been cleared by the bank it was written on.

Depending on your credit status, and your relationship with your bank, the amount above which they will put deposited cheques on hold – can vary. Avoid surprises, contact you bank and find out at which point cheques you deposit, are put on hold.

Remember: It is Your Money – don’t be afraid to ask your bank questions!

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

Share This!

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on pinterest

Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
js_loader