How to read a bank statement, line by line
Opening balance, closing balance, posting dates and running totals: a plain-language walkthrough of what every part of a bank statement means.
Key takeaways
- Every bank statement has a period, an opening balance, a closing balance and a list of transactions.
- The opening balance plus every transaction should equal the closing balance exactly.
- Posting dates can lag transaction dates by a day or more, which matters when you total by month.
Bank statements look different at every institution, but almost all of them carry the same handful of facts. Once you know where to look, any statement reads the same way.
The summary box
Near the top you'll find the statement period, the opening balance and the closing balance. These three numbers are the statement's promise: the opening balance plus every transaction in between equals the closing balance, exactly.
Credit card statements use different words for the same idea — previous balance, new balance, payments and credits, purchases — and add a minimum payment and a due date. The arithmetic still has to add up.
The transaction list
- Date — usually the posting date, sometimes alongside the transaction date.
- Description — the merchant descriptor, often truncated or full of codes.
- Amount — debits and credits, sometimes in separate columns.
- Balance — a running total after each line, on most checking statements.
Posting date vs transaction date
The transaction date is when you made the purchase; the posting date is when the bank recorded it. A purchase on the 31st can post on the 2nd of next month. For monthly totals, the transaction date is the one that reflects your behaviour — more on that in why your card cycle isn't your calendar month.
Use the arithmetic as a check
If you ever copy transactions out by hand, add them up and compare against the difference between opening and closing balance. If they don't match to the cent, a line is missing or mistyped. It's the same check PaperSpend runs on every statement before importing it.
Frequently asked questions
What is the opening balance on a bank statement?
It is the account balance at the start of the statement period — the same figure as the closing balance on the previous statement.
Why don't my transactions add up to the closing balance?
Usually a line was missed or mistyped, or a fee or interest charge was overlooked. Opening balance plus every transaction should equal the closing balance to the cent.
What is the difference between a posting date and a transaction date?
The transaction date is when the purchase happened; the posting date is when the bank recorded it. They can be one or more days apart.
