Most experts recommend keeping copies of your bank statements for 1 year. If you have bank records related to your taxes, keep them for 7 years and any that pertain to business expenses, home improvements, mortgage payments, and large purchases should be kept until they are no longer relevant.

If you are applying for a loan, most lenders require between one month and a year’s worth of bank statements to process the loan application.

Bank statements also provide proof of unauthorized charges or fraudulent activity related to your accounts.

Having copies of your bank statements protects you financially, serves as a financial record, and ensures you can access your account history when you need it.

Banks offer online statements and you can opt out of receiving mailed copies which you should do. Mail theft is a major problem, if your bank statements or other private documents are stolen it can lead to financial and identity theft.

Banks are required by law to keep most records for at least five years, although many banks retain their members account statements for up to 7 years you don’t want to depend on that, log into your bank account and download a copy of your statements so that you always have a digital copy saved to your computer.

A bank statement is a detailed record of your bank account. It includes deposits, withdrawals, checks paid, interest earned, service charges, penalties incurred etc. You should review your statement each month to check for accuracy. If you find anything out of the ordinary such as unauthorized transactions, missing deposits, or other discrepancies you should contact your bank to report the problem.

We all have documents that we need to maintain and keep either permanently or for a period of time.

It is important to have a secure location to store your records, a fireproof-waterproof safe is an ideal storage location, these can be locked and bolted down, and they protect your documents in the event of a fire or flood.

Consider not only storing your documents but creating digital copies of them as well, digitizing documents guarantees you’ll always have a copy of them, even if the physical documents are lost or stolen. There are many advantages of having a digital copy, it ensures easy access to records, saves space in your house or office, reduces paper clutter, allows you to easily share documents with others, aids in file longevity because paper copies can deteriorate over time and protects your documents in the event of natural disasters and theft, and if the originals are lost or stolen the digital copy will act as a reference and proof when acquiring replacements.

Once you’ve digitized your documents, keep the main copy on your computer and make a backup copy on an external hard drive, you can place the external hard drive and paper documents in the safe for optimal protection. Additionally, you can scan documents that you receive such as bills, statements, receipts, and invoices so that you have a digital copy, then you can safely dispose of all or some of the paper copies.

You can also sign up for online bill pay and statements with your financial institutions, utility companies, mortgage company and others so that you can access the documents online and download them to your computer. When you sign up for online access, you can request that paper copies are no longer mailed which reduces the risk of them being stolen and used for malicious purposes.

So, what records should you keep on a permanent basis or short-term basis, and what can be disposed of?

Records You Should Store Permanently

Most experts suggest keeping annual tax returns for 7 years, but it is a personal choice. I keep mine forever, at least a digital copy.

W-2 forms or 1099s.

Certificates of deposit, investment certificates, stocks, bonds, and mutual funds.

Medical records, immunization records, disability documents and proof of benefits papers, and organ doner cards.

Wills and powers of attorney, living trust, living will & medical directories.

Birth certificates, death certificates, Social Security cards, marriage license, divorce certificates, alimony and child support settlements, custody agreements, adoption records, passports, military records and legal records, citizenship and naturalization papers, copyrights and patents.

The deed to your home and other documents related to your home purchase, real estate transaction slips, and home repair/maintenance documents.

Diplomas, professional certificates, and professional license documents.

List of bank account numbers.

Vehicle titles.

Car bill of sale—keep for liability reasons.

Employee benefit information, pension records and retirement account information.

Insurance policies.

Home inventory records.

Records to be Stored Temporarily

Keep paycheck stubs for 1 year.

Bills for your home, 1 year. If you run a home business keep records for 7 years.

Keep mortgage statements for 1 year.

Keep bank statements and credit card statements for 1 year.

Warranties and service agreements—Keep until warranty or agreement expires.

Cancelled checks and bank statements keep 1 year.

Record of traffic violations and accidents keep for 3 years.

Receipts, until the return period and warranty have expired. For major appliances and purchases for as long as you own the item.

Final Thoughts:

Identity theft is a major concern and any documents you dispose of should be shredded before you put them in the trash.

Make digital copies of the documents you need to save forever and for the documents that you can dispose of, that way you have a copy of everything that is or was at one time important. If the original has been thrown away and you later discover that you need a copy of it you can refer to the digital copy.

You can also make digital copies of the items you carry in your purse or wallet such as driver’s license, credit cards, debit cards, identification cards and other important information. If your wallet is lost or stolen you will need to know what is missing, who to contact and you will need to be able to provide account numbers and other information to get replacements.

You can scan documents using your smartphone or a scanner attached to your computer.