What is a passbook savings account?

Passbook savings accounts provide an alternative to digital accounts by offering hands-on record-keeping and account management. These accounts are not very common or good for maximizing interest. However, if you like the idea of banking in person and keeping a book of your transactions, a passbook savings account could be for you.

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.

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.

Are passbook savings accounts worth it?

Passbook savings account holders avoid all of that drama. These accounts usually don’t come with tons of fees. If there is a minimum balance requirement, (and there often isn’t one) it’s typically on the lower end of the spectrum, making the passbook savings account a good fit for Americans of all ages and income levels.