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If you’ve ever wondered how long to keep bank statements, you’re not alone. Between paper clutter and digital records, it’s not always clear what’s safe to toss and what’s worth keeping. Below, we’ll break down how long to hold onto your statements, why it matters, how to manage them securely—plus when it’s time to shred and declutter.
Why Keep Bank Statements?
Bank statements are an important part of your financial record-keeping. Holding onto personal statements is good because it helps with verifying payments, tracking your spending, and catching errors or suspicious activity early. Personal bank statements can also come in handy at tax time, serving as proof of income or deductible expenses.
If you’re a business owner, there are even more document retention reasons to consider. Keeping your bank statements may help you reconcile accounts, document cash flow, and prepare for tax filings or audits. They also provide a paper trail for expenses, refunds, or client payments—details that can make a big difference when you’re managing your books or applying for financing.
Suggested Timeframes for Different Statement Types
How long you keep your bank statements depends on what you use them for.
Checking and savings statements: It’s generally enough to keep these for one calendar year, especially if you’ve reviewed your annual summary and confirmed that all transactions match your records.
Tax-related statements: General IRS guidelines suggest keeping these for at least three years, and extend to six or seven years if they support deductions or claims on your tax return. (We’ll cover IRS guidelines in the next section.)
Credit card and loan statements: Hold onto these for 12 to 18 months in most cases, or longer if they document payments tied to tax filings, disputes, or large purchases like a home or vehicle. Mortgage or loan payoff statements, for instance, should be retained until the loan is fully settled and reflected in your lender’s records.
Setting clear timeframes for each type of document keeps your recordkeeping simple—and ensures you always have the financial statements you might need for taxes, disputes, or verification.
IRS Record-Keeping Guidelines
The IRS has clear guidance on how long you should keep records for your taxes, including bank statements that support your returns. These recommendations help ensure you’re covered come tax season—especially if you ever need to verify income, deductions, or credits.
For most taxpayers, IRS document retention guidelines recommend holding on to your financial records for three years after filing your return, since this is the standard audit window. Per IRS guidelines, if you underreported income by more than 25% or had income from foreign assets, keep them for up to six years.
Non-Tax Reasons to Keep Statements Longer
Beyond how long to keep bank statements for taxes, there are other circumstances where you might want to hold onto documents for a bit longer:
Loan applications: Lenders often request several months of bank statements to verify income, savings, or spending habits.
Proof of income or payment: Bank statements can serve as supporting documentation for rental agreements, benefit applications, or vendor payments.
Warranty or insurance claims: Proof of purchase may be required to process claims on large items or insured assets.
Property records: Statements showing payments for home improvements or renovations can help establish your property’s cost basis, which may be useful for future tax or resale purposes.
If you run a small business, it’s best to hold onto your statements a bit longer—typically up to seven years. They provide a clear record of income and expenses, support cash flow management, and offer a safeguard if you ever need to verify payments, apply for financing, or respond to an audit.
Paper vs. Digital Bank Statements
When it comes to storing your bank statements, you’ll find yourself choosing between physical paper copies and digital files. Each has advantages—and risks—so the key is finding a system that suits your habits, security needs, and access preferences.
Paper Statements: Pros & Cons
Paper statements are tangible. You can flip through them in a filing cabinet and mark things manually. That can feel reassuring for tracking large transactions or catching errors. On the flip side, paper is vulnerable: it takes up space, it can be damaged in a flood or fire, and it’s harder to retrieve remotely. It’s also a much bigger security risk to have your statement sitting in your mailbox.
Digital Statements: Pros & Cons
There are a lot of reasons people opt for digital statements over paper. For one thing, they’re convenient and easy to manage. Most banks and credit unions let you access e-statements for five to seven years online, and you can search, download, and store them for your own records. Some credit unions also reward the use of digital statements. For example, Sunward allows more than four checking accounts without monthly fees on the condition that the member opts into estatements and enotices.
The main risks with digital statements are security and accessibility—using weak passwords or failing to back up files can leave your information vulnerable.
Retention Advice
Download and archive your digital statements each year so you’re not relying solely on your bank’s online access, which may change over time. If you prefer paper, print and file one annual statement—such as January’s summary—instead of every monthly copy.
For most checking and savings accounts, keeping one year of active records plus an archived digital backup is enough. Whatever format you choose, aim for accessibility, security, and simplicity. A mix of paper and digital can strike the right balance, keeping what matters most while clearing out unnecessary clutter.
Organizing and Safeguarding Statements
Good storage is only half the battle. Organizing your statements so you can find what you need, when you need it, matters just as much.
Set up a clear folder system. Whether you go digital or paper, organize by year and account type (for example: BankStatements → 2024 → Checking_January.pdf). Consistent naming makes it easier to search and reduces the chance of misplacing files.
Back up securely. Keep two copies of your digital records—one stored locally and another in the cloud—and encrypt or password-protect any folder that includes account details. This ensures you’re protected if one copy is lost or corrupted.
Store with care. Paper records belong in a locked, fire-resistant place. For digital files, enable two-factor authentication, keep software up to date, and check once a year that your files and backups are still accessible.
When to Shred Bank Statements (or Delete Them)
Once you’re sure you no longer need your statements, it’s safe to dispose of them—just make sure to do it securely. Shred paper statements with a cross-cut shredder, and permanently delete digital files from your devices, cloud, and backups. (Simply moving them to the trash isn’t enough.)
A Little Order Goes a Long Way
Managing your bank statements is one small part of staying financially organized—but it can make a big difference. A clear system for saving, storing, and occasionally decluttering your records helps you stay confident in your finances and ready for whatever comes next.
Bring peace of mind to every facet of your banking with Sunward. Explore our personal banking and business banking options to help you save, grow, and plan for the future.
This content is for informational purposes only. Please consult a qualified professional for advice regarding your legal, tax, or financial situation.
FAQs
Do I need to keep paper copies if my bank offers digital statements?
No. Digital statements are generally sufficient for recordkeeping and often easier to access when you need them. Most banks and credit unions store e-statements securely online, so there’s usually no need to keep paper duplicates. If you prefer a backup, you can download PDFs and save them to an encrypted or password-protected folder.
Can I access old statements through my bank or credit union?
Yes—most financial institutions keep digital statements available online for five to seven years, though some may offer longer access. (In fact, credit unions are required to retain member statements for seven years.) If you need older records, you can usually request them directly from your bank, though there may be a retrieval fee. It’s still smart to download annual copies for your own archive, just in case policies or systems change.
Should I keep bank statements for seven years?
In most cases, you don’t need to. The IRS generally recommends keeping personal statements that support your tax return for three years, or six years if you underreported income by more than 25% or had income from foreign assets that weren’t reported. The seven-year period applies only in specific cases—such as when you’re claiming a bad debt deduction or a loss from worthless securities.
That said, seven years is a good retention period for business bank statements, since they document income and expenses that may be needed for audits, financing applications, or other financial reviews.
Is it safe to throw away bank statements?
Yes, as long as you do it securely. For paper statements, use a cross-cut shredder to destroy sensitive details before recycling. For digital statements, permanently delete files from your computer and cloud storage—don’t just move them to the trash. Taking these steps can help protect you from identity theft and keep your information private.
