A record, maintained by the account holder, that tracks all transactions affecting a specific demand deposit account. This record typically includes dates, descriptions of transactions (such as deposits, withdrawals, and fees), and running balances. For example, an individual might use this record to note the date and amount of a check written to a local grocery store, subtracting that amount from the previous balance to arrive at a new balance.
Meticulous record-keeping offers numerous advantages, including facilitating reconciliation with bank statements to identify discrepancies and detect potential errors or unauthorized activity. Maintaining a detailed record provides a clear picture of account activity, aiding in budgeting, financial planning, and the timely identification of potential overdraft situations. Historically, this type of record was almost exclusively a paper ledger, but now is often maintained electronically through banking websites or personal finance software.