How Long Should You Keep Bank Statements?

How Long Should You Keep Bank Statements?

In general, plan to hold onto bank statements for at least a year. Having all of your prior-year statements available when you prepare your taxes will help you confirm income and track deductible expenses accurately.

You may want to keep statements for longer in the following circumstances:

• Keep statements needed to document fraudulent activity, bank errors or credit card disputes until your issue is completely resolved.
• Keep statements for at least three years if you use them to document income, expenses, deductions or credits on your tax return. This holds true whether you receive statements electronically or by mail. If you want to be extra safe, hold onto tax-related statements for seven years, which is generally the longest period of time the IRS may look back at your taxes.

How Long Do Banks Keep Statements?

If you receive paperless statements, you can typically access one to three years' worth of statements through online banking. How far back these statements go can vary by bank. Additionally, banks may keep archived statements (or printable transaction records) in their systems for five years or longer.

You can request past copies of paper statements you normally receive by mail by contacting your bank or credit card company. The same goes for archived statements that are no longer available online. If you request statements from your bank, you may pay a small fee for copies.

Why Can It Be a Good Idea to Keep Bank Statements?

If you've used statements to back up information on your tax returns, resolve fraud issues, or prove a purchase, you may want to keep your own paper or digital copies, rather than relying on the bank to do it. That way, you'll know you have these documents on hand for as long as you need them. You can also access and refer to information in your statements without having to track it down online.

Whether you use online bank statements or keep your own copies, here are some common reasons you might need to reference them:

• Reconcile your bank accounts: Reviewing your bank statements when they're issued is a good practice for keeping your account in order. Check to make sure you've been properly credited for deposits and haven't been charged fees in error.
• Monitor accounts for fraud: Also look for unfamiliar transactions that could be a sign of fraud and report any suspicious activity to your bank. If you file a fraud complaint, keep your bank statements until any outstanding charges have been resolved.
• Prepare your taxes: Save bank statements that have information you'll need for your taxes. Saving the full prior year's statements may help you verify W-2 or 1099 income, self-employment expenses or deductions for items like medical expenses or charity contributions.
• Document tax deductions and credits: Keep statements you've used to help document deductions, credits or expenses for at least three years, the typical period of limitations on an IRS audit. If you want to be extra safe, keep your tax-related statements for seven years.

How Long Do You Need to Keep Other Financial Documents?

Other financial documents should be treated—and potentially stored—with care. Here are a few types of financial papers and files and how long to consider saving them:

Save until reconciled with your monthly or quarterly statement:

• ATM receipts
• Deposit and withdrawal slips
• Investment transaction records
• Credit and debit card receipts

Save for tax time and/or until reconciled with annual tax reporting documents:

• Monthly/quarterly checking, savings, credit card and investment statements
• Mortgage statements

Download and/or save paper copies with your tax returns:

• Form 1098 showing annual mortgage interest paid
• Schedule K-1 forms for income, payments and losses on investments
• 1099-INT forms for interest paid to you
• Form 5498 for retirement account contributions and 1099-R for distributions

Keep copies in your files while active:

• Contracts
• Stock certificates and records
• Disputed bills and supporting receipts, statements and communications

How to Store Your Financial Documents

Keeping your documents organized and secure is essential. Take inventory of all the financial documents you need and follow these steps to store them safely:

Scan Important Documents

You may want to create digital copies of important documents like your birth certificate, Social Security card, vehicle titles, house deed and will. Keep the paper originals and store them securely, as suggested below.

Encrypt Your Files

Encryption makes it harder for scammers to use stolen information. Common computer operating systems can encrypt your files. Cloud servers are also encrypted, so storing your data in the cloud is another secure option.

Tip: The U.S. Cybersecurity and Infrastructure Security Agency (CISA) offers a guide to protecting data stored on your devices.

Store Hard Copies Securely

Store important financial documents in a locked file cabinet kept in a secure location. Even better, consider installing a fireproof safe: You can use it to store valuables as well. Alternatively, you can store financial documents in a safe deposit box at a bank.

Shred Papers and Delete Files

Dispose of your paper and digital files securely, so they don't fall into the wrong hands. Shred paperwork and make sure any files you delete are permanently wiped from your computer or mobile device.

Frequently Asked Questions

The Bottom Line

Bank statements provide detailed summaries of everything that's happening with your accounts. They can also be key supporting documentation for your tax return, or at other times when your finances may be called into question.

Keep your statements for as long as needed to help with tax preparation, or fraud or dispute resolution. Maintain your files securely for three to seven years if you've used them to help document tax deductions, credits or expenses. For more help keeping your financial information secure, check out Experian's identity theft protection tools.