How does a passbook savings account work?

You deposit money into the account, where it’s stored securely and is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per account, per ownership category. Similar to a standard savings account, a passbook savings account earns interest. Your account balance will grow over time.

What is a passbook & how does it work?

With a passbook, a consumer always knew the status of his or her bank account. If someone with a passbook savings account needed to make a deposit or take money out of their account, that person had to physically enter a bank to complete the transaction. And each time, their passbook received a stamp as proof of what had taken place.

What is a bank passbook?

These accounts come with a booklet (called a passbook) that serves as a detailed record of transactions, including deposits, withdrawals, and interest earned. Typically, the teller stamps the passbook every time you make a transaction so you know exactly what you have in the bank.

Where can I find a passbook savings account?

While passbook savings accounts are harder to come by these days, they are offered by various banks and credit unions. You’re most likely to find this type of account at a local community bank or credit union. The large, national banks typically don’t offer passbook savings accounts.