How Long Do You Need to Keep Bank Statements?
Ask ten people the question “how long to keep bank statements” and you will, more than likely, get ten different answers. It is no different from anything else in life, if you don’t store your bank statement information, you will definitely need it. If you do store it, then you probably won’t. How long you store it for and how far you go back is a matter for discussion. It differs from country to country and a situation may arise when you will need it.
How long should you keep bank statements?
A bank statement is a record of all the transactions including purchases, payments, payroll deposits, etc. There is no need to store and keep old bills and invoices from utility companies, credit card transactions, personal payments etc. All this information will be stored on your bank statements.
Most banking institutions keep customer statements online for at least one year letting you save copies and delete them from their system after a given period. But some banks store them for a longer period. American Express, for example, keeps three years’ worth of account transactions online and are readily searchable. Chase Bank users can access seven years of banking activity and can be found on their app.
The minimum period we recommend keeping them as hard copies is at least 3 years. An electronic form is better stored for no less than for six years after the issue date, according to HMRC recommendations. But to be on the safe side, it is preferable to archive digital copies for a longer period, especially if it refers to a legal entity. They will not take up much space on your hard disc.
When do you need bank statements?
You might need them for your tax return, submitting expenses or applying for a mortgage or a loan.
You will need to access your statements when you file your income tax returns. This is obviously crucial if you are to verify your money income and balance your costs such as charitable contributions and money for business expenses. Being a sole trader, a merchant or a freelancer means taking responsibility for your own tax affairs.
Some major companies seem to have the urge to go over ancient transactions and dig out any unfinished dealings no matter how small. The problem is that there is little point storing your data if it doesn’t go back as far as the companies and that can be for a fair period of time.
Accordingly, we strongly recommend storing all the scanned / digital copies of your documents, relevant to tax, for as long as possible.
What can you do with old bank statements?
Some slightly more old-fashioned people, in such matters, keep them in paper form. But digital copies are getting more popular in the neo banking era. This method is definitely a lot eco-friendlier.
The general rule of thumb is to shred and discard the paper documents, although having said that a lot of people keep theirs. But for environmental reasons, please use the electronic versions of bank statements, if it is possible.
How to get a bank statement from Satchel?
Bank statements and standard audited confirmation of accounts and balances are readily available, from Satchel, by making a straightforward online request. It’s very simple. If you have any specific questions just call the live customer support and talk to an actual person, not a bot, as in most e-money institutions.
In Conclusion
For safety reasons it is wise to review your bank account activity and banking details regularly for evidence of identity theft and account fraud. So, even if you are not a business owner or a freelancer, the statement will help to track the history of your transactions. They can be used to prove information of specific banking and any damages that you may want to claim.
