Why is it Important to Review Your Current Account Bank Statement Every Month?

Posted on Monday, October 14th, 2024 | By IndusInd Bank

Many people overlook the importance of reviewing their monthly statements. It often takes too much time to realise that discrepancies have occurred. Hence, keeping a close eye on your bank statement is a crucial practice for effective financial management.  

A monthly statement is a detailed banking document provided by your bank. It summarises all transactions in your current account over the past month. This statement includes deposits, withdrawals, transfers, and any fees charged. Reviewing this document ensures all transactions are accurate. It also helps you point out any errors or fraudulent activities early.

Benefits of Reviewing Your Current Account Statement

·       Identifying Unauthorised Transactions

Spotting unauthorised transactions is one of the main reasons you should review your bank statement. Fraudulent activities can happen with anyone. The sooner you detect them, the quicker you can act. You should regularly check your monthly statement. This helps to identify any suspicious transactions that can be reported to the bank immediately.

·       Managing Your Finances Better

Reviewing your bank statement helps to understand your spending habits. Are you spending too much on dining out or entertainment? Do you have recurring subscriptions that you no longer use? Identify these patterns and make more informed financial decisions to manage your budget more effectively.

·       Avoiding Overdraft Fees

Overdraft fees can add up quickly and put a strain on your finances. Keeping track of your balance through your monthly statement can save you from that. You can avoid spending more than you have and steer clear of these unnecessary charges.

·       Monitoring Account Activity

Reviewing your banking documents allows you to monitor account activity closely. This can especially help business owners. If you are a business owner, you need to keep track of numerous transactions. Regular checks help you stay on top of your finances and avoid any surprises at the end of the month.

·       Planning for Future Expenses

Your bank statement provides a clear picture of your financial situation. By analysing this document, you can plan for future expenses. You can save for a big purchase or manage daily expenses. In both cases, having a clear understanding of your financial health is crucial.

Also Read: What are the Transaction Limits on an Online Current Account?

How to Review Your Bank Statement?

Reviewing your bank statement is simple with this guide.

·       Set a Routine

Make it a habit to review your bank statement at the same time each month. This routine will help ensure you don’t overlook this important task.

·       Check Each Transaction

Go through each transaction listed in your statement. Verify the amounts and dates to ensure they match your records. If something looks unfamiliar or incorrect, investigate further.

·       Use Online Banking Tools

Many banks in India offer online banking tools that make it easier to review your statements. Use these tools to access your monthly statement and keep track of your transactions. They often provide additional features like categorising expenses, which can be very helpful.

Conclusion

Reviewing your current account bank statement should be a habit. It is vital for effective financial management. It helps to avoid overdraft fees, have accurate records, monitor account activity, and plan for future expenses. Don’t wait until an issue arises—take control of your finances. Start today and see the difference it makes!

If you are ready to take charge of your financial health, review your bank statement. To open a current account, choose a trusted bank like IndusInd Bank. It provides comprehensive online banking tools that will help you stay informed, secure, and help to manage your finances better.

Click here to learn more about IndusInd Bank’s current accounts.

Disclaimer:
The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.