How to Read a Bank Statement (And Spot Hidden Fees)

Your bank statement is a powerful tool for managing your finances, but it can be confusing if you don’t know what to look for.

    Here’s a step-by-step guide to help you read your bank statement and spot hidden fees:
  • Step 1: Understand the Key Sections of Your Bank Statement: Every bank statement contains important information—get familiar with these key sections:
    • Account Information: This section includes your name, address, account number, and the statement period (usually a month).
    • Balance Summary: This shows your starting balance, total deposits/credits, total withdrawals/debits, and ending balance. What to look for: Ensure that your ending balance matches your account balance at the end of the statement period.
    • Transactions List: This is a detailed list of all deposits, withdrawals, transfers, and other activities in your account during the statement period.
    • Fees and Charges: This section shows any fees charged during the statement period (e.g., monthly maintenance fees, ATM fees, overdraft fees).
  • Step 2: Spot Hidden Fees: Sometimes, fees are not immediately obvious. Here’s how to find them:
    • Monthly Maintenance Fees: Many banks charge a monthly fee for maintaining your account. It may be hidden in the transaction list as a "service charge" or "maintenance fee." Tip: Review your statement for charges like “account maintenance,” “service charges,” or “minimum balance fees.”
    • ATM Withdrawal Fees: Banks often charge fees for using ATMs outside of their network. These fees may be added to your withdrawal transaction. Tip: Look for any withdrawals that include additional charges. Make sure the ATMs used are in-network to avoid unnecessary fees.
    • Overdraft Fees: If you spend more than what’s in your account, you might incur an overdraft fee. Tip: Overdraft fees are often charged per transaction, so keep an eye on any "overdraft" or "insufficient funds" charges.
    • Foreign Transaction Fees: If you’ve made any international transactions, check for fees related to foreign currency conversions or international purchases. Tip: Look for charges labeled “foreign transaction fee” or “currency conversion fee.”
    • Late Payment Fees: If you have automatic payments set up (e.g., for loans or bills), a late payment fee might apply if the payment was missed or delayed. Tip: Double-check due dates and amounts to avoid unexpected fees.
  • Step 3: Verify Each Transaction: Review every transaction listed on your statement. Look out for:
    • Unfamiliar Transactions: Ensure that all the transactions are ones you recognize. If you see any unfamiliar charges, contact your bank to dispute them immediately
    • Double Charges: Sometimes, due to errors or system glitches, you may be charged twice for a single transaction. Keep an eye out for duplicate charges and bring them to the bank’s attention.
  • Step 4: Review and Resolve Issues: If you spot hidden fees or any discrepancies:
    • Contact Customer Service: If you don’t understand a fee or notice an error, contact your bank's customer service for clarification or to dispute the charge
    • Ask About Fee Waivers: Some fees, like monthly maintenance charges, may be avoidable by meeting certain conditions (e.g., maintaining a minimum balance). Ask your bank if they can waive any fees based on your account history.
  • Step 5: Regularly Monitor Your Bank Statements: Getting into the habit of regularly reviewing your bank statements can save you money and prevent surprises. Set a reminder to check your statements every month and stay on top of your finances.

By learning how to read your bank statement and spot hidden fees, you can avoid unnecessary charges and make informed decisions about your money. 💡 #CedisPay #BankingTips #HiddenFees #PersonalFinance #MoneyManagement #SmartMoney #FinancialFreedom

Trusted by over 1000 small businesses and individuals in Ghana

The Future is Us.

Belong to a place where you are financially supported.

Looking for financial support? Reach us

Contact us  
CedisPay - Group photo