Written byA bank statement is a record from your bank listing every deposit, withdrawal and fee on an account, with the running balance for the period.
Also known as: account statement, transaction statement, statement of account
Key points
- Every statement shows an opening balance, each transaction in date order, and a closing balance that carries into the next period.
- Lenders read statements to confirm income, see real spending, and check whether repayments are already in arrears.
- Most banks now share the same data digitally through open banking, so posting PDFs is becoming rare.
- Statements reveal fees, dishonours and direct debits that a payslip never shows.
- Keep statements that support a tax deduction or a business expense for at least five years.
What is on a bank statement
A statement covers a set period, usually a month or a quarter. It names the account holder, the BSB and account number, and the opening and closing balances. Between them sits every transaction: pay coming in, card purchases, transfers, interest and any fees the bank charged.
For a business account the statement is the backbone of your bookkeeping. You reconcile it against invoices and receipts so the accounts match reality, which is what makes your cashflow reporting and your BAS reliable. Reconciling monthly also catches duplicate charges and card fraud early, while the bank can still act.
Why lenders ask for bank statements
Statements are the most honest picture of how money moves through a household or a business, which is why they sit at the centre of underwriting. A lender is testing affordability: does the income arrive when you say it does, and what is left after the regular commitments.
Most lenders ask for three to six months of statements for the main transaction account, and longer for a business loan where trading patterns matter. Dishonoured payments, gambling transactions and undisclosed debts all show up here, so it is better to explain them upfront than to leave them to be found.
Example
A landscaper applies to finance a second ute. The lender asks for six months of statements from the business trading account. They show steady deposits from three regular commercial customers, a seasonal dip over winter, and one dishonoured direct debit in March. The broker adds a short note explaining that the dishonour followed a customer paying late, and attaches the invoice to prove it. The assessor accepts the explanation, because the rest of the account history is clean and the pattern matches what the applicant said about the business.
Not to be confused with
- Open banking
- open banking shares the same account data digitally rather than as a document you download
- Balance sheet
- a balance sheet summarises what a business owns and owes; a statement lists actual transactions
Frequently asked questions
How do I get a bank statement?
Download it from internet banking or your bank's app, where statements are usually stored as PDFs for several years. Branches and phone banking can post or email copies, sometimes for a fee. If a lender or broker asks, you can often share the data directly through open banking instead.
How many bank statements do lenders need?
Three to six months for personal applications is typical, covering the account your income lands in. Business applications often need six to twelve months across the trading account, and sometimes the loan and credit card accounts too. The lender or broker will tell you exactly which accounts they want.
Do bank statements affect a loan application?
Yes, quite a lot. Assessors look for stable income, regular commitments, existing debts and any missed payments or dishonours. Statements can also reveal debts you did not list. None of that is automatically fatal, but unexplained patterns will slow an application down or lead to a decline.
How long should I keep bank statements?
Keep anything supporting a tax claim or business expense for at least five years from when you lodge the return, which is the ATO's general record keeping period. Most banks hold digital copies for around seven years, but do not rely on that if you close the account.
Can I edit a bank statement before sending it?
No. Altering a statement to hide a transaction is document fraud, and lenders verify statements against bank data or open banking feeds. If something on the account needs context, write a short explanation and attach evidence instead. Assessors deal with unusual accounts every day.
Related terms
Open banking
Open banking is the regulated framework under Australia's Consumer Data Right (CDR) that lets you authorise accredited third parties to access specific financial data held by your bank.
Read definitionCash flow
Cash flow is the movement of money into and out of a business over a period; unlike profit, it tracks actual receipts and payments, so it measures liquidity.
Read definitionDirect debit
A direct debit is an authority, given through a Direct Debit Request (DDR), that lets a biller withdraw agreed payments from your nominated bank account, usually for recurring bills.
Read definitionFees
Fees are the explicit charges a provider applies for a financial product or service, separate from interest and covering access, administration or transactions.
Read definitionArrears
Arrears are overdue repayments on a loan or credit account: the borrower has missed instalments, which the lender tracks by days past due and which can lead to a default.
Read definitionUnderwriting
Underwriting is the process a lender or insurer uses to verify an application, assess the risk and decide whether to approve, decline, or approve with conditions and pricing.
Read definitionGo deeper
Sources
This article is general information only and is not financial advice.