Can I shred receipts from old bank statements?

Question

I plan to scan old bank statements (from the last 3 years) into the computer so that I can save them that way, but do I need to keep the receipts that went along with them? I have the receipts for each month filed with the statement, but I wonder if having a copy of the statement is enough. Also, should I keep bank statements longer than 3 years? Please advise!

I'm not saving the files on my hard drive, just in case it crashes. Everything will be put onto a CD. And I thought that 7 years was for tax return paperwork, not bank statements?

Answer 1

As far as keeping the statements, keep them for 7 years just to be safe.

As far as receipts, make sure all of your deposits are included when you get your statement, then it's safe to shred your receipts. If you do not get your checks and deposit tickets back, either by image or a hard copy, and should need them in the future, your bank will have a copy stored. But when have you ever needed a copy of a deposit ticket? It's very rare.

Answer 2

Here is some advice from Clark Howard, a consumer advocate in Atlanta, GA. This is from his website.

What records to keep:
# Tax returns, keep forever
# Tax return documentation, for six years
# Contracts, forever
# Real estate records, forever
# Last pay stub of a job if you leave that job
# Last pay stub of the year for your current job
# All mortgage payment checks (statements), until mortgage is paid off
# All student loan payments, until loan is paid off
# Car loan payment stubs, until the car is paid off
# Cancelled checks, for 7 years
# Bank deposit slips, for 7 years
# Bank statements, for 7 years
# Home improvement records, ownership period plus 7 years
# Investment records, ownership period plus 7 years

What records to toss:
# Credit card statements that are more than three years old
# Past insurance statement
# Old utility bills, except the most recent one from your old address if you've moved
# Recently paid bills (statements), once you have something saying they've been paid

Also check out this link. It is the IRS's recommended list of tax records to keep:
http://www.bankrate.com/brm/itax/Edit/News/Stories/news_071900a.asp

Best Wishes :)
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Answer 3

The rule of thumb on receipts is to save them for at least one year. I usually save mine until my statement comes out, unless it is for something important like utility or large purchase.

Also, if you itemize on your taxes, you will want to save them for at least 3 years, in case of audit.

I would still save the hard copies of the bank statements. You never know when your hard drive will die or it could be faulty and messup before its suspected life time ends.

Answer 4

The only reason to keep a receipt is if it applies to your taxes or there is a warranty involved. Three years is more than enough to maintain bank records.

Answer 5

If you are saving for tax purposes, the law is 7 years. You are going to clutter up your hard drive, and if you have a crash, may lose everything, just when you need it.

Answer 6

Save everything that you might need for taxes or return to store.