Well, if you too haven’t heard about passbook savings account before, then you’re not alone. As the name suggests, Passbook accounts followed a traditional method to record deposits, withdrawals, interest earned, and other transactions in a small booklet called passbook and were extremely popular once for its retro style savings account. Today, electronic record keeping or e-statements has made passbook accounts largely obsolete. Though, the passbooks still exist to record the banking transactions, most commonly for savings accounts for minors or senior citizens, who are not much exposed to the digital banking services. If you’re still confused with its existence, read on to find out more about it.
Features of passbook savings account:
Passbook is a significant document for any bank account and even acts as proof of identity in certain cases. Basically, passbook is issued by the bank for maintaining and recording all deposit and withdrawal transactions. There are certain features to be noted down about this booklet.
Security – Passbooks are way more secured to record the banking transactions. There is no risk of passbook clone; in fact, even if fraudulent actions are taken, fraudsters can hardly do any transaction using it. Passbook savings account may not be the best financial instrument, but it is definitely safe to park your hard-earned money in.
Convenience – Even though it follows traditional deposit and withdrawal methods, passbook accounts are convenient and easily accessible. An accountholder can deposit or withdraw funds immediately with the bank without any penalty charges. Moreover, you can directly visit the nearest bank branch, instead of searching for the proper internet network for online transactions or the ATM. Although, passbooks are issued only by the mainstream banks and financial institutions and non-banking financial institutions or small/local banks generally don’t offer any such facility.
Peace of mind – While e-statements are easy to access, passbooks trigger peace of mind. This is because checking e-statements often can trigger financial pressure after seeing your financial standings. If in good position, you may plan to invest unnecessarily, while in case of poor standings, you hardly can keep your mind off the financial scenario. On the contrary, passbooks are updated periodically and thus, can offer peace of mind.
Flexibility – Similar to e-statements, passbooks too can be updated anytime whenever the need arises. For instance, if you have applied for a new loan or credit and the lender has asked for the updated account statement, then you can get the passbook printed anytime. In addition, every time you withdraw or deposit funds, you can get the records printed on the passbook immediately, while e-statements usually take 2-3 days to reflect the latest transactions.
Frequency of withdrawals – One of the many features of passbook bank accounts is that it offers better flexibility and frequency of withdrawals. In case of ATM withdrawals, per day and per month transactions are restricted to a number of withdrawals and amount. On the other hand, this is not the case in passbook savings account. An accountholder can deposit and withdraw funds directly through a bank without following any restrictions.
Final words: – Even though digital banking has become quite popular, traditional passbook savings account hasn’t lost its essence. Even today, people prefer passbook account for its convenience and traditional banking services.