Features of a passbook savings account include a physical book that serves as tangible representation of how money in the account is growing and no monthly fees, according to Bankrate. Another feature of such an account is that it cuts down on impulse banking behavior.Continue Reading
A passbook savings account requires a customer to see a teller; it does not allow ATM use, explains Bankrate. In this vein, a passbook savings account can help a customer who spends money quickly or who has less financial discipline. Even though seeing a teller takes only a few minutes, any little obstacle to impulsive spending helps.
The accounts can be important for people who desire tangible objects, according to Bankrate. For example, many parents prefer the physical book because they can open an account for their children and teach the kids about money. The kids get to see how the money in the account appreciates, and parents use the account to teach them about money and savings. Some immigrants and older people also like being able to hold the book.
Identity theft is also less of a concern with passbook savings accounts because they are not online, and banks do not mail monthly statements, says Bankrate. The passbook has all the information. If the passbook is lost, someone pretending to be the account holder must visit the bank to use the passbook. Odds of fraud detection are much higher.Learn more about Bank Accounts