Bank statements should be retained for a minimum of one year, either in a hard copy or electronic format. After this period, they should be shredded and can be discarded.
Reasons for Keeping Statements
Outside of having records for purchases, bill payments and payroll deposits, keeping old bank statements offers a number of benefits. Bank account activity should be reviewed regularly for instances of identity theft and debit card fraud. Keeping statements provides verification of illicit activity that can be used to recover any damages. Bank statements can be used to verify income and transaction activity, such as charitable contributions and business expenses, that may be needed for tax returns. Bank account statements confirming large purchases or payments may also be worth hanging on to. Automatic teller machine (ATM) receipts can be shredded once reconciled with account records. Similarly, deposit and withdrawal slips can be shredded once the transaction is verified with the monthly statement.
Online vs. Hard Copy Statements
Maintaining hard copies of bank statements is less of a necessity than in the past given the availability of account information online. Many banks and financial institutions maintain monthly customer statements online for five years or longer that are accessible through their online banking platforms. Detailed statements often come in easily printable formats, and summarized transaction information is frequently available for download free of charge.
For safety, any hard copy bank statements should be held in a fireproof safe in a secure location. Electronic statements should be maintained in a password-protected file.