Using cloud-based storage not only saves on space, but also can be great for organizing and keeping your documents secure, since most services guarantee protection through encrypted networks. Many cloud-based solutions allow access through mobile devices, making your documents accessible almost anywhere in the world.
The last thing you want to do is shred something to save space, only to need it five years later. Throwing away documents with your trash exposes your information to anyone willing to do a little dirty work to steal your identity.
You might not realize how much information is present on your old bills, statements, voided and canceled checks and other financial documents. Your best option is to shred any documents that contain sensitive information before tossing them. Either invest in a shredder for your home or utilize a professional shredding service.
Many cities also hold free paper shredding days for residents. A financial life necessarily involves a significant amount of documentation—from monthly bank statements to insurance documents to the various materials required to file your taxes. Kevin Payne is a personal finance and travel writer who writes about credit cards, student loans, debt, credit, and family finances. Kevin lives in Cleveland, Ohio with his wife and four kids.
Select Region. United States. United Kingdom. Kevin Payne. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. One Year Documents that fall into this category include non-tax-related bank and credit card statements, investment statements, pay stubs and receipts for large purchases.
How to Store Financial Documents You can cut down on clutter by creating a reliable system for storing your financial documents. Paper Storage Many people choose to keep documents stored in a filing cabinet. The past several years have seen an explosion of cloud-based solutions, including: Dropbox Google Drive Microsoft OneDrive iCloud Amazon Cloud Drive Box NextCloud iDrive Carbonite Using cloud-based storage not only saves on space, but also can be great for organizing and keeping your documents secure, since most services guarantee protection through encrypted networks.
Was this article helpful? Share your feedback. Send feedback to the editorial team. While banks can keep this information in any form they choose — electronic, microfilm, original or copy — it must be easy to access if requested. These records must include the original or a copy of the payment order, name and address of the originator and beneficiary, date of transfer, account and banking information and any special instructions.
Funds transfers in which the originator and beneficiary were the same person and those in which the originator and beneficiary used the same bank are exempt from this regulation. If your bank has ever suspected you of suspicious activity, the Suspicious Activity Report your bank filed with the Financial Crimes Enforcement Network will remain on file for five years from the date it was reported. The bank must also keep the original business record and any other evidence of alleged fraud for five years.
She is completing her M. Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W—2 and , bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years. You should also hold on to pay stubs so that you can use them to verify the accuracy of your Form W-2 when tax season arrives.
Otherwise, you can dispose of them as soon as you verify your payment was processed. You can also dispose of bank withdrawal and deposit slips after verifying them with your monthly statement. For physical documents, designate a safe, out-of-the-way place in your home to store all paper records that protects them from damage or theft. For digital records, be sure to archive and back up all electronic records. Use complex passwords to keep your account information safe.
Make sure your username and password combination is different from the ones you use for personal email, online merchants and social media accounts. Protecting your computer with antivirus software is also a good idea.
Invest in a cross-cut shredder that will eliminate all traces of your personal information, or search for free shredding events in your community.
Having paperless statements and documents can help reduce the risk of identity theft posed by lost or stolen mail. The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Please also note that such material is not updated regularly and that some of the information may not therefore be current.
Consult with your own financial professional and tax advisor when making decisions regarding your financial situation. We're here to help. Reach out by visiting our Contact page or schedule an appointment today.
We strive to provide you with information about products and services you might find interesting and useful. Relationship-based ads and online behavioral advertising help us do that. For safety, it's best to keep any hard copy bank statements in a fireproof safe in a secure location. Electronic statements should be maintained in a password-protected file.
Use password protection for electronic files. Hard copy statements should be kept in a secure, fireproof location that can be easily accessed.
It may seem easier to just keep your records forever rather than setting aside time to organize them. It's not a great idea, though, primarily because of the potential for identity thieves to get them.
Documents that should be shredded include the following:. When you're ready to dispose of your bank statements, make sure you actually shred them. Just ripping them in half, isn't going to stop identity thieves from piecing together your personal information. Shredders are now small, portable, and cheap. If your paper volume is enormous, shredding services can be bought. Some banks will shred your statements for free on request. Checking Accounts. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.
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