How your credit union statement works.
Seldom will your credit union statement and checkbook register agree. But, that is no reason to panic. It’s merely a matter of timing.
Your statement lists the transactions posted to or cleared to your account as of the closing date. The closing date is usually found in the upper right-hand corner of the first page of your statement.
On Coosa Pines FCU statements, it looks something like this:
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STATEMENT PERIOD
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FROM
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TO
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08/01/10
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08/31/10
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MEMBER NUMBER
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123456 789
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- -
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1
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SOC SEC NUM
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PAGE
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In the example above, August 31 is the closing date for this statement.
Once your statement has closed, it will take time to print and mail the statement to you, or for you to retrieve your eStatement online. Meanwhile, you are continuing to write checks, make deposits, use your ATM/ debit card, and hopefully keeping track of these transactions in your register. It can also take up to a few days for these transactions to be recorded on your account.
Record, Balance, Repeat
Recording each transaction in your checkbook register and adding or subtracting it from the balance is the first step to simplifying the balancing
act. Try to record transactions at the time you make them, but if you’re just not disciplined enough, then set aside a little time each day to review and record your transactions. You can do this with receipts, or better yet, through free
Virtual Branch online banking,
Mobile Money, or the
Express Line telephone banking service.
By recording the transactions and balancing your account total in your checkbook register, you’ll get a clearer picture of your spending habits and know exactly how much money you have. And the sooner you detect and correct a problem -- the better.
Tip: Keep transaction receipts or a page from your checkbook register wrapped around your ATM/ debit card. You’ll be more likely to keep up with transactions, and can use the receipts or register to be sure the correct amount is debited from your account.
The Balancing Act
Balancing your checkbook each month within a day or two of receiving or reviewing your statement will not only reduce your stress level, it will lessen the amount of time it takes to complete the task.
On the back of your monthly statement is a handy form to help you balance. Use it along with the following steps to make balancing a snap.
On Coosa Pines FCU statements, the form looks similar to this:
Before you begin, gather the following:
- Your last two credit union statements
- Your checkbook and register
- Any ATM or debit card receipts that you did not record in your checkbook register
- A pencil
Eight Steps to Balancing
1) Record Interest Earned
In your checkbook register, enter all of the interest earned on your account (if applicable).
For CPFCU checking (Share Draft) accounts, the interest earned will appear at the end of the “SHARE DRAFTS-TYPE 75” section of your statement at the end of each quarter. So, on your March, June, September, and December statements you will see the dividend posted on the last date of that month.
It will look something like this:
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MO
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DY
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YR
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TYPE OF ACCOUNT/ TYPE OF TRANSACTION
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CHG TO BALANCE
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BALANCE
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06
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30
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10
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DIVIDEND EARNED 04-01-10 THRU 06-30-10
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4
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16
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104
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16
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.51 ANNUAL PERCENTAGE YIELD EARNED 04-01-10 THRU 06-30-10
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In this example, the interest earned is $4.16. Add this to the balance. Be sure to record any other credit amounts listed, such as credit union corrections, fees returned to you, etc.
2) Record Service Charges, Etc.
In your checkbook register, record any charges that have been subtracted from your account, as shown on your statement.
These charges may include:
A) Monthly services charges (does not apply to CPFCU checking accounts)
B) Per check charges (does not apply to CPFCU checking accounts)
C) ATM Transaction Charges
D) Non-Sufficient Funds (NSF) fees
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SHARE DRAFTS-TYPE 75
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OVERDRAFT FEES
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28
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00
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YTD OVERDRAFT FEES
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56
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00
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Tip: YTD = Year To Date
Subtract these charges from your register balance.
Last Checkbook balance _______________
Interest from Statement + _______________
Subtotal = _______________
Service Charges from Statement - _______________
“New” Checkbook balance = _______________
3) Verify Deposit Amounts
Look at your latest statement and verify that all deposits listed match the deposit amounts in your checkbook register. Then, make a list of any deposits that are listed in your register but do not appear on your statement. Add these together.
Tip: Use the worksheet on the back of your statement.
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Date
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Outstanding Deposits
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Amount
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6/28/10
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Payment
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150.00
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Total
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150.00
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4) Match All Check Entries
Match the entries in your register with the transactions listed on your account statement. Compare check numbers, dates, and dollar amounts on all checks written. If these items match (the checks have been posted to your account), place a check “√” mark next to the transaction in both your register and on the account statement.
If they don’t match, circle the item in both places so that you can come back to fix the error once all of the transactions have been checked off.
If the Transactions Don’t Match
Check for one of three errors:
1) The item was recorded incorrectly in your checkbook register.
2) The item was paid or was credited to your account for the wrong amount, or
3) Your check numbers were listed incorrectly.
To Correct the Errors:
1) Simply re-check your cancelled checks (or check “duplicates”), check images on Virtual Branch, deposit receipts, or ATM
and debit receipts.
2) Remember that some items will not be checked off. These are called “outstanding” items.
5) Check for Outstanding Items from Previous Statement
Be sure that all of the outstanding items from your previous statements have been included in this statement. Otherwise, they are still outstanding.
Tip: If an item is outstanding for 60 days or more, contact the person or company to which you issued the check to verify it was received. If not, then the check may have been lost. You may contact the credit union and issue a stop payment.
6) Verify Other Debits on Statement
Verify that additional withdrawals listed on your statement, other than checks, are charged for the actual transaction amount. This includes ATM withdrawals, debit card transactions and any automatic debit transactions like insurance payments, loan payments, or utility payments.
7) List All Outstanding Checks
Make a list of all outstanding checks or ATM or debit card withdrawals. These are transactions that appear in your checkbook register that do not have a check “√” mark next to them. Add these items together.
Tip: Use the worksheet on the back of your statement.
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Outstanding Share Drafts
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Number
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Date
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Amount
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5001
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6/10/10
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20.00
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5003
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6/15/10
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30.00
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Total
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50.00
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8) Balance
Now, balance your checkbook register to your credit union statement. Use the formula below, which is also located on the worksheet on the back of your statement.
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STATEMENT ENDING BALANCE
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200.00
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ADD (+) Deposits Shown in Checkbook
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150.00
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Register But Not on Statement
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Subtotal
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350.00
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MINUS (-) Total Outstanding Checks
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50.00
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Total
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300.00
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Compare this total with the ending balance in your checkbook register. They should be the same.
If not, there’s a mistake. But don't panic! Mistakes can be corrected.
If they are the same, then congratulations! You’ve successfully balanced your checkbook!
If Things Don’t Add Up
- Take a short break to clear your head.
- Start by re-verifying your outstanding items.
- What’s the difference? Is your checkbook balance higher or lower than your statement? Subtract the smaller figure from the larger one to find the difference.
- Divide the difference by 9. If 9 divides into the number evenly (that is, with nothing left over), the problem is transposed numbers. For example, $258 was recorded as $285. Look over your receipts and cancelled checks and double-check your amounts.
- Divide the difference by 2. If the answer you get is a “normal” dollars-and-cents amount ($7.19 rather than $15.125), look for that amount in your register. It was added instead of subtracted, or vice versa.
Still Doesn’t Balance?
Well, you’ve tried hard and made every effort. Now it’s time to ask for help. Call or come by one of our branches. You will need to bring in your current credit union statement and your checkbook register. Every effort will be made to assist you in balancing, and next time it will be easier.
