NWEDI on a bank statement means a deposit was placed into your account on an off day of a bank such as a weekend or a public holiday. Banks use this as a code on a bank statement that indicates a deposit was made in an account when banks are closed.
Have you ever received an unfamiliar charge on a bank statement? If yes, don’t be afraid it is difficult for many of us to figure out the financial abbreviations. Because bank statements are important statements that include the deposit on them. These statements are essential elements of money management.
In this guide, I will share my experience while exploring the charge, examine this code word, and what it means on a bank statement, and explain its effects on your deposit and a bank statement. So, fasten your seat belts and understand the charge once and for all.
Understanding NWEDI: The Breakdown
NWEDI stands for Non-Workday Electronic Deposit Item. Simply, it means a notification from your bank that a deposit has been made electronically into your account on a day other than standard business hours. Just like on weekends or public holidays when banks are closed for work.
The Significance of NWEDI: It Is More Than Just a Code
While this abbreviated code may appear like an insignificant detail, it plays a pivotal role. By distinguishing deposits made during regular business hours from non-working days deposits are more easily identified for processing purposes, thus proving useful for:
Confidently Reconcile the Accounts
Understanding the cryptic code can help you accurately match deposits with paychecks or transfers even if funds arrive a day or two later.
Improved Financial Tracking
Being aware of when deposits are initiated on non-working days gives a clearer view of your overall cash flow situation.
Reducing Confusion
It works to remove any uncertainty regarding deposits made outside regular banking hours, providing you with a clear picture of account activity.
How Does NWEDI Impact on Your Deposits?
The impact on your deposit can be explained by taking an example let’s imagine:
Assume that your bank working days schedule is Monday to Thursday and you are a freelancer and invoice clients regularly. Once you finish your project send the invoice to your client and initiate sending the funds electronically on the same day.
But the next day is Friday a Non-working day for your bank. The payment was processed on the same day but will not be shown in your account until Monday. Your bank will show on your bank statement as a NEWDI deposit, which indicates that electronic funds were deposited on a non-working day.
Why does NWEDI are shown on your bank statement?
As discussed above, when deposit inflow in your account on a day other than the bank’s standard operating working days like weekends or public holidays then this charge code appears on your bank statement.
Previous practices of banks were to hold the funds whenever a deposit came into an account of account holders on non-working days. And release those funds on the next working day of business banking hours.
So, a Saturday deposit would not be available until Monday. Fortunately, technology has transformed things! Most banks now process these deposits electronically and promptly, so the monies are readily available.
How Does NWEDI Affect My Bank Statement?
This charge has no significant effect on my bank statements; it’s a code simply used by banks as an indication that deposits were made on non-business days and can quickly be found in your account balance.
Notably, it’s important to keep in mind that deposits made on non-working days may take longer to appear on your bank statement as banks typically generate statements on working days – any transactions performed outside these periods may not be recorded until the following statement has been created.
How to Read Your Bank Statement?
Now that we understand what NWEDI means, let’s delve deeper into how to read your bank statement. Below are a few key aspects you need to pay attention to when reading a statement:
Account Information
Your bank statement will include details regarding your account number, type, and statement period in a prominent place at the top.
Opening and closing Balances
Opening balance means at the beginning of the statement period and closing balance means what is left at the end of it.
Deposits
Deposit means your inflows of all the transactions along with dates, amounts, and sources for each one.
Withdrawals
Withdrawals are your outflows during the statement period along with the date, amount, and source to whom payment has been made of each withdrawal.
Fees
Fees are the charges that are charged by your bank against services such as ATM fees, overdraft fees monthly maintenance fees, etc.
Interest
In the case of your savings account interest earned means profit during that period. This shows your inflows in the statement.
Ending Balance
Ending balance means at the end of the period in a bank statement after deducting withdrawals from your deposit. Simply inflow minus outflow.
How to Get Your Bank Statement?
Most banks provide multiple methods for you to access your account statement. Here are a few commonly used techniques:
Online Banking
You can get your bank statement via online banking platforms such as Internet banking, and WhatsApp Banking where you can view and download your bank statements after logging into your account.
Mobile Banking
You can get your bank statement via the mobile banking app rest of the process is the same as stated above through online banking.
Paper Statements
This old method but still used by some banks they provide paper statements, which will typically be delivered directly to your address at the end of every statement period. However, this option may incur a fee.
Why Is It Necessary to Review Your Bank Statement?
Reviewing your bank statement regularly is essential in ensuring all transactions listed are correct and here are a few reasons why:
- To detect the fraud or any error.
- For the creation of a budget to track your expenses.
- For tracking of your loan.
- For tax purposes.
- To spot any unusual charges on your bank statement.
FAQs – Frequently Asked Questions
An ING Wholesale Banking Bulgaria mentions this code in their terms and conditions document, leading us to believe they may use NWEDI on bank statements.
Not necessarily; not all banks utilize the code as an indicator for non-workday deposits. Some banks may utilize it, while others may use different terminology or codes when classifying deposits outside business hours.
No. these codes should only be used to make deposits made on non-working days, not withdrawals.
To determine whether your bank uses the code to indicate non-workday deposits on bank statements, you can:
Visit their website or mobile app for details regarding statement codes and terminology they utilize – many banks offer glossaries or FAQs explaining common abbreviations used within their organization.
Unfortunately, Non-Workday Electronic Deposit Item codes do not involve any errors specifically. Instead, some banks use this code as a way of identifying electronic deposits made on non-working days like weekends or holidays using these specific codes.
Conclusion
It is simply used by banks to distinguish deposits made on non-working days versus working days. It will have no significant impact on your account balance – all deposit amounts will still appear as part of your balance statement.
These deposits may take longer to appear on your statement as banks typically generate statements on working days. Although these are legitimate and common, often associated with direct deposits or other electronic fund transfers.
