Why is it important to review your bank account statement

Subject : Business

Question: Why is it important to review your bank account statement? What fees might this help you avoid? Explain your answer.

Expert Verified Solution:

Reviewing your bank account statement is important for several reasons:

Detecting Errors: Regularly reviewing your statement helps you identify and correct any mistakes made by the bank, such as incorrect charges or deposits.

Monitoring Transactions: It allows you to keep track of all transactions, ensuring that you are aware of your spending and can spot any unauthorized or suspicious transactions.

Avoiding Overdraft Fees: By checking your balance and recent transactions, you can avoid overdrawing your account, which can result in overdraft fees or insufficient funds charges.

Preventing Unnecessary Fees: Reviewing your account can help you avoid fees related to insufficient funds, late payments, or account maintenance charges by ensuring that you have enough funds and are adhering to any account requirements.

Managing Budget: It helps you stay on top of your financial situation, allowing you to manage your budget more effectively and make informed financial decisions.

Overall, reviewing your bank account statement helps maintain financial accuracy, security, and control, reducing the risk of unexpected fees and ensuring that you are managing your finances properly.​