DR in a bank statement denotes debit, indicating funds withdrawn or debited from your account. It can also signify that the account is overdrawn.
Understanding Debits on Your Bank Statement
When you see "DR" on your bank statement, it means money has been taken out of your account. This is the opposite of "CR," which stands for credit and indicates money added to your account.
Common Reasons for DR Entries:
- Withdrawals: Cash taken out at an ATM or over the counter.
- Payments: Payments made using your debit card, checks, or online bill pay.
- Fees: Bank charges for services, such as monthly maintenance fees or overdraft fees. According to the provided reference, "FEE: This abbreviation signifies various fees charged by the bank, such as maintenance fees, overdraft fees, or service charges."
- Transfers: Money transferred from your account to another account.
Example of a DR Entry:
| Date | Description | Amount | DR/CR |
|---|---|---|---|
| 2024-01-15 | ATM Withdrawal | \$100.00 | DR |
| 2024-01-16 | Debit Card Purchase - Store A | \$25.50 | DR |
| 2024-01-17 | Monthly Maintenance Fee | \$10.00 | DR |
In the example above, each "DR" entry represents a reduction in your account balance.
What if Your Account is Overdrawn?
The reference material indicates that "DR" can also be used to signify an overdrawn account. This means you've spent more money than you have available in your account. You'll likely incur overdraft fees if this occurs.
