Advantages of Passbook savings account

Wondering if passbook savings account still exists? Yes. They do exist at certain local and national banks. Traditional savings accounts have been there for over a century and were commonly referred to as a passbook savings account. It is the conventional way to track the flow of funds into and out of the account.

These accounts are there because of customers, especially the older generation and those from rural areas, who are not still comfortable using digital mode of transactions and prefer face-to-face financial dealings. Owing to this, some banks and credit unions still offer passbook accounts as an option to their customers.

If you come to think of it, the concept of passbooks hasn’t changed much with time. It has just undergone modification to suit the modern world and come with names like bank statements or e-passbooks.

Passbook savings account transactions require the account holder to do the transactions in person. The account holders do not have ATM cards to withdraw funds. The amount has to be withdrawn in person from the bank by filling in the withdrawal slip. However, the traditional way of getting the passbook updated at the teller counter is now replaced with computers and special printers that copy the latest transactional data directly into the customer’s passbook.  

Here’s what one must know before getting the account  

1. Ideal for short-term goals: Their minimal and uncomplicated rules allow the account holders to save. The savings could be to meet the down payment to buy a car, set-up a modular kitchen or to fund a vacation trip. All the account holder needs to do is to shop for banks offering best interest rates.
2. No frivolous purchases: Passbook savings account is a simplified, secure and traditional banking option. These account holders are less likely to make frivolous purchases. The account holder has more time to think about the transaction than just simply swiping a card.
3. Peace of mind: Passbook account come with no monthly charges or minimum balances. It is a liquid asset that offers accounts holders a convenient way to save. Also, it is a great way of stashing away your money in case there is an emergency.
4. No frequent password change, wrong statements:  There have been several incidents where people operating electronic mode of banking have complained about frequent change of passwords or statements with several mistakes. Passbook savings account holders are free from these technical hassles. In case of any discrepancy, the entries can immediately be rectified.

The banking system and the financial industry have undergone a sea-change in the past couple of decades. With the development of Internet banking, passbook accounts have become largely obsolete.

It entirely depends on the preference of the individual, whether to own a passbook or go for Internet services. Log on to https://savingaccount.in/blog/passbook-savings-account for more details.