The Ten Secrets About Statement Balance Higher Than Current Balance Only A Handful Of People Know | Statement Balance Higher Than Current Balance

Many retail businesses struggle with knowing whether their statement balance is higher than the current balance. While it's not a huge issue, understanding whether this information is correct and accurate can significantly impact your bottom line. If you're not sure how to read your balance, it's helpful to understand the concept behind this and exactly how this affects your business.

Essentially, your statement balance is your estimate of what your bank or credit union owe you based on the current balances that they've collected on your account. This means that even if you've paid all of your debts, haven't bounced checks, and other things that can artificially inflate the amount of money owed to you, your balance will still be higher than your current assets. To put it simply, your balance is reflecting the current value of all of your accounts including accounts you don't even use or have any interest in. There are two major reasons why this occurs: The first is that when you close a checking or savings account, you take your checkbook along with your balance and the cash they'll owe you out and leave the account (claiming the appropriate deductions).

After leaving the account, there's no record of you as being paid anything on that account. Thus, your statement balance reflects the actual amount you owe minus the amount you're currently paying. When you close a checking or savings account, this effect is also gone because the bank doesn't have to provide a record of who did what. However, this isn't always the case. In fact, if you have a debit card, most cards will actually have a line item for “Deposit” that can be used to show your current balance as well as your statement balance.

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Your statement balance is also affected by how long since you took a vacation, moved, quit working, got fired, etc. This is why some people have a statement balance that's lower than their current account balance. It's not because their accounts are higher than current, but because they've gone away for a while. Usually, this effect is temporary and will reverse once you get your balance back up to where it should be.

Now, don't think that because you're currently paying a higher amount than your account balance that you won't be tempted to exceed your account's maximum balance. You probably will, and that's where overdraft protection comes in. An overdraft protection feature is built into checkbooks and helps protect your account balance from high overdraft fees. This feature is usually built into a checking account, so if your balance goes over your maximum checkbook limit, you don't get charged any overdraft fees.

If you don't currently have an overdraft facility built into your checking account, consider getting one. This is especially true if you tend to carry a lot of expensive activity on your checkbook. The overdraft facility charges fees to cash your checkbooks and this can eat away at your checking account balance. So, if you see an item on your statement that you know is not yours (because it's an overdraft or automatically drawn from your account) – don't cash it. Let the check bounce, and then go back online to pay for the item.

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In addition to overdraft protection, consider whether you need a higher minimum balance. Check your statement regularly and make sure that you don't exceed your account minimum balance. If you do, it's easy to just go back online and pay for the item without struggling to remember why you set the minimum balance in the first place. Some banks and credit unions do offer higher minimum balances for customers who tend to use their checking accounts a lot. But remember that this is typically only when a lot of frequent users are present in a household. For families or households that only meet occasionally, a lower balance may be a better choice.

Consider whether your statement balance is really an issue. If you don't use your account very much, you probably don't care about checking to see how much is left in there. If you tend to keep your checkbook at work, a higher minimum balance might be worth it because it can be harder to go over it. If you need a quick boost to your checking account balance, consider transferring your high-interest debt to your savings account. If you want to make a larger purchase, you may also benefit from transferring your current high-interest debt to your savings account.

Statement Balance vs

Statement Balance vs | statement balance higher than current balance

Statement Balance vs

Statement Balance vs | statement balance higher than current balance

Statement Balance vs

Statement Balance vs | statement balance higher than current balance

What’s the Difference Between Statement Balance vs | statement balance higher than current balance

What’s the Difference Between Statement Balance vs | statement balance higher than current balance