and Terms on Your Bank Statements" width="100%" />and Terms on Your Bank Statements" width="100%" />
As more and more banking options are available online, fewer and fewer people choose to receive paper bank statements every month, for businesses or those with multiple bank accounts, however, these statements are important to managing finances.
Unfortunately, these statements are not always simple to read and understand. Some banks tend to include vague, misleading, or complicated information and sometimes even hidden fees. It might even feel like there is a secret banking language that only financial institutions can read. The truth is, these abbreviations all have distinctive meanings–either on your paper statements or your online accounts–that tell you important information about your accounts and transaction history.
Bank Statement Buzzwords and Abbreviations
There can be many abbreviations on your bank statements. Different transactions are categorized to help organize your account and prevent fraudulent charges. Let’s take a look at some of the most common below:
APR: The Annual Percentage Rate of an account over a year
ATM: Automated teller machine transactions
ATM RFD: ATM refunds
BBP or BP: This identifies a bill payment
BAC or BACS: Bankers Automated Clearing Services – make payments directly from one account to another
CDM: Cash Deposit Machine – bill payments or withdrawals completed at a cash machine
CHG: Charge related to a transaction
CHQ: Transactions made using a paper cheque
COR: Transaction error correction
CRE: A Credit added to your account
CSH: Cash deposited into your account
CUI: A check that has failed to clear your account
DWT: Department for Work and Pensions transaction
INT: Credit or debit on your account based on interest
ISA: Individual Savings Account
ITL: International transfers
OTR: Online banking transaction
POS: Point of sale/debit card transactions
REV: A debit returned to your account
SAL: Salary paid (usually in the form of direct deposit)
S/O or STO: Regularly scheduled payment from your account to another account or a third-party app
SBT: Screen-based transaction–a transaction processed on your behalf by your bank
TEL: Telephone banking transaction
TFR: Transfer of funds between accounts
TLR: Teller transactions
If you find a term or transaction on your account that you cannot place or do not understand, it is always a good idea to contact your bank and discuss it. Not only will this help prevent any fraudulent charges, but it can help you with budgeting. You may identify a subscription or service that you no longer use but forgot to close. Or even more troubling, you may find you may be using a product that is not the best fit for your banking needs.
The experts and Falcon National Bank understand that this can be confusing. If you have any questions about your statement, weather you bank with us or not, give us a call.
Learn more about how important it is to understand your monthly statement, it could save you more than a few bucks! #feechallenge
