How Long Should a Checking Account Statement Be Kept?

If you prepare a simple tax return each year without itemizing, you only need to keep bank statements for a year. The same goes for cancelled checks, or copies of cancelled checks your bank sends in your statement. Calculate the year on the tax filing due date, or any date after it was due that you filed the return.

The IRS points to its “period of limitations” as a guide for how long to keep records to support tax returns. Keep them three to seven years to amend a return, or in case the IRS audits you or assesses an additional tax. Gregory Copp, a certified public accountant in Austin, Texas, suggests you keep indefinitely any tax supporting documents such as bank statements. You should also keep bank statements indefinitely if you knowingly file a false return or don’t file at all.

Buying or selling a house is one of the largest transactions you'll make. Keep all bank statements relating to those transactions and for the entire time you own the house. The statements will also support related transactions for things like property taxes or home improvements. You can toss the bank statements seven years after you sell a house.

Once you feel you can discard those bank statements, do so wisely. Shred or burn them so no personal information falls into the wrong hands. You can avoid a paper trail at all if your bank can give you a record of electronic files. You can store those on a personal computer or portable drive.