A bank statement is more than a record of money coming in and going out. It is a monthly check on whether your account activity matches your own records. Reading it carefully can help you spot unexpected fees, duplicate payments, missing credits and transactions you do not recognise.
1. Check the statement period and account details
Start by confirming the account name, account identifier and dates covered. A statement for one month may include transactions authorised near the end of the previous period or payments that settled after the period closed. Keep statements securely because they contain personal and financial information.
2. Understand opening balance, credits and debits
The opening balance is the amount recorded at the start of the period. Credits increase the account balance, such as salary payments, refunds or transfers received. Debits reduce it, including card purchases, direct debits, cash withdrawals, transfers and bank charges. The closing balance should reconcile with the opening balance plus credits minus debits, subject to the bank’s accounting and settlement rules.
Do not confuse the statement balance with the available balance shown in an app. Card authorisations, holds, overdraft facilities and transactions that have not yet settled can make these figures different.
3. Identify fees and recurring payments
Look for account maintenance charges, card fees, ATM charges, transfer costs, overdraft interest and fees for optional services. Check the description, amount and frequency. A small recurring charge can add up over a year. If you are comparing accounts, review the total cost rather than looking only at the advertised monthly fee. Our guide on comparing bank account fees in Portugal explains which charges to examine.
4. Review unfamiliar or duplicate transactions
Match larger purchases to receipts and check subscriptions, direct debits and card payments you may have forgotten. A merchant’s billing name can differ from the shop name, so first check the date, amount and receipt history. If the transaction still looks unfamiliar, contact your bank promptly using the official app, website or the number printed on your card. Never share your PIN, full password or one-time security code with someone who contacts you unexpectedly.
If a payment appears twice, keep screenshots or copies of the statement and any receipts. Ask the bank whether one entry is a pending authorisation or a completed duplicate before assuming both amounts have been charged.
5. What to do when the balance does not match
- Recalculate the opening balance, credits and debits.
- Check whether a transfer or refund is still processing.
- Look for card authorisations, cash withdrawals and direct debits.
- Contact the bank through an official channel and record the case reference.
- Keep copies of the statement and relevant evidence until the issue is resolved.
Do not ignore a discrepancy simply because it is small. Reporting time limits and procedures vary by transaction type and country, so follow your bank’s instructions and applicable local rules. For consumer guidance in Portugal, consult Banco de Portugal’s banking customer portal.
Monthly bank statement checklist
Confirm the statement period, reconcile balances, review all fees, check recurring payments, investigate unfamiliar activity and save the statement securely. A short monthly review can help you catch problems early and understand where your money is going.
Further reading
Image credits: Bench Accounting and Luke Southern via Unsplash. This article is general educational information, not individual financial or legal advice.