Bank statements and payments

A bank statement is a record of payments in and out of a bank account.

Most people have a current account as it is where their wages, pensions and/or benefits are paid into. The money available in a current account is known as the balance.

Payments from a current account can be made by different methods:

  • debit card
  • credit card
  • direct debit
  • standing order

Debit card

Payments by a debit card leave the account immediately. This is the usual transaction that takes place when purchasing from a shop or over the internet.

Credit card

Payments from a credit card work as an account between the user and the credit card company. The user will get a credit card bill in every month and be asked to pay a minimum amount of the balance.

Direct debit

Direct debits are set up with companies who need to take flexible amounts from your account.

For example, energy providers offer direct debit payments as the amount that of energy used each month may vary and they take the required amount at each bill.

Standing order

Standing orders are similar to a direct debit except that they are for a fixed amount. For example, a standing order would be set up to pay a fixed amount to a charity every month.