How long should you keep bank statements?

According to the Federal Deposit Insurance Corporation, people should keep bank statements for one year if they have no bearing on taxes. Bank statements that are vital to taxes should be kept for seven years.

Consumer Reports magazine says to file bank statements every month. When tax time comes, people should submit any bank statements needed to back up deductions or other tax-related issues. Other statements can be shredded.

Consumer Reports points out that maintaining an organization system for monthly bank statements and tax records makes filing taxes easier. To do this, the tax preparer can do it himself or hire an accountant.