Bank statement abbreviations: at a glance
- What do I need to know? Banks use abbreviations in your monthly statements to keep them clear and consistent.
- What does it mean for me? Learning how to read your bank statements can help you spot unexpected charges faster.
- Why does it matter? Understanding bank statement abbreviations puts you in control of your finances, so you can protect and grow your cash.
Your bank statements tell you everything you need to know about what your cash is doing. But with a long list of acronyms, it can be difficult to decipher what’s happening with your money.
In this guide, you’ll learn all about bank statement abbreviations, including some of the most common codes and what they mean.
What are bank statement abbreviations?
Bank statements show you exactly what you’ve earned or spent over a certain period, like a month or year, and where that money has been transferred.
But with so many ways to save, invest, and spend, banks use abbreviations in their statements to save space. These codes are mostly uniform across all banks, making it easier to spot patterns in your spending or understand which savings or investments are helping your money to grow.
Why is it important to understand bank statement abbreviations?
Bank statements contain a lot of information. And it can be difficult to keep track of your money, especially across multiple accounts with regular transactions.
But understanding bank statement abbreviations lets you easily see where your money is coming in. For example, whether you received income from interest or dividends. This allows you to reinvest your earnings strategically.
Bank statement abbreviations can also help you minimise potential losses from errors or duplicate payments. You can easily filter your bank statement by specific abbreviations to see where your money is going and make sure you’re not paying more than necessary in fees or charges.
You can also spot and address any errors or inconsistencies as early as possible, before they compound and start impacting your finances.
Decoding bank statement abbreviations: what do they mean?
It’s important to check your bank statements to make sure your costs are correct. And that you’re meeting your earning expectations on your savings and investments.
Below are some common abbreviations you might find on your bank statement, and what they’re telling you about your money:
| Abbreviation | Meaning | Definition |
| AER | Annual Equivalent Rate | The percentage of earnings you can expect after one year, accounting for the effect of compound interest. |
| APR | Annual Percentage Rate | The total cost of your borrowing, including interest and fees, expressed as an annual percentage. |
| BAC or BACS | Originally stood for ‘Bankers’ Automated Clearing System’ (now known as BACS) | Used for automating lower-value transactions like Direct Debits, salaries, pensions, and bills. |
| BIC | Bank Identifier Code | An eight to 11 digit code that identifies your bank, country, location, and branch. |
| CHAPS or CHP | Clearing House Automated Payment System | Used for same-day, high-value, or time-critical payments, like house deposit transfers. |
| CHG | Charge | A fee applied to your account for using certain banking services, like making international payments. |
| COR | Correction | An updated and accurate adjustment to a previous transaction error. |
| CRE | Credit | Money added to your account through a deposit or payment. |
| DD or DDR | Direct Debit | An authorised agreement between your bank and a business to transfer money on an agreed, recurring date. Often used to pay bills or subscription fees. |
| DIV | Dividend | Payments you receive from a company in which you own shares, when they make a profit. Usually paid annually. |
| DR | Debit | Money taken from your account when you make a payment or transfer. |
| FPI or FPO | Faster payment inwards or faster payment outwards | Near-real-time transfers supported by the Faster Payments System (FPS). Inwards means you’ve received the money, outwards means you’ve paid someone else. |
| IBAN | International Bank Account Number | A standardised, 22 digit code for identifying your bank account, used for international payments. |
| INT | Interest | A charge for borrowing money, expressed as a percentage. You can either earn interest when you lend money out (including when you put it in a bank account), or pay it when you borrow money through loans and credit cards. |
| ITL or INT'L | International payment | Money sent to, or received from, another country, usually in a foreign currency. |
| POS | Point of sale | The time, place, and retailer associated with a transaction. |
| PSB | Premium Savings Bonds | Prize payments received from Premium Bonds issued by NS&I (National Savings & Investments). |
| REV | Reversal | A payment cancellation and refund, often due to an error or fraud detection. |
| S/O or STO | Standing order | A regular payment instruction you give to your bank to send a fixed sum on a specified day, often used for paying rent. |
| SAL | Salary | Regular income you receive from your employer. |
| STK | Stocks and shares | Money you earn from, or pay into, stocks and shares. This might include profits made when selling shares or from dividend earnings. |
| TFR | Transfer | Money you move from one account to another. |
Frequently asked questions about bank statement abbreviations
How do I identify a transaction on my bank statement?
Bank statements provide details about every transaction you make, to help you recognise what you’ve spent or earned.
When it comes to unfamiliar transactions, look for the trading name and abbreviation type, among other contextual clues. This might include the point of sale and the amount.
If you still don’t recognise the transaction, contact your bank immediately to ask for more information.
Your bank might also be able to help you cancel pending transactions or reverse fraudulent payments.
What to do if you see a suspicious transaction on your statement
If you spot a suspicious or unrecognised transaction on your bank statement, contact your bank for information immediately.
It may be a recognised retailer acting under a different trading name, or an abbreviation you haven’t seen before. But it’s always a good idea to check for your own peace of mind.
If you still don’t recognise the payment, you can ask your bank to cancel or reverse the charge, and freeze your card in case someone has your details.
Understand your bank statement to understand your money
Your bank statement isn’t just a record of your spending. It can be the key to understanding and taking control of your money.
Learning how to analyse your bank statement could be the first step towards changing your financial habits to protect and grow your wealth.
Access competitive rates from multiple banks with Flagstone
Flagstone's savings platform gives you control over your cash with access to hundreds of accounts from 65+ banks.
All in one place, with one login.
