While a passbook savings account won’t be for everyone, digital passbook apps offer a good middle ground for those who like the traditional aspects of a passbook but still want to take advantage of modern technology. Your selection might be limited to small, regional banks. You won’t be able to enjoy the convenience of online banking in some cases.Ĭustomers might have to visit the bank in person. Passbook savings accounts can help children learn about banking.įees and interest rates are often favourable. Here’s a look at the main pros and cons.Ī physical notebook makes it easy to see all your transactions and balance at a glance. If you enjoy the old-school aspect of recording your transactions on paper, a passbook savings account might be a good option for you. Most banking apps could be looked at as the replacement for the old-fashioned passbook, allowing you to facilitate transactions and record their details without the need to visit the bank in person. These work the same way as a physical paper version, showing a record of transactional details. In addition to Apple Passbook, there are several informal passbook apps offered by banks. However, this goes a step beyond the traditional meaning of a passbook by also allowing users to store cards, coupons, event tickets, and boarding passes in a central location. For example, Apple Wallet is also called Passbook. ![]() You may have seen the term ‘passbook’ also used in relation to mobile apps and wallets. In fact, some banks offer a digital passbook instead to facilitate electronic transactions. The bank will keep track of your transactions and interest rates through its computer system, whether or not you choose to hold a physical passbook in hand. However, today there is more technology involved than in the past. If the idea of visiting a bank branch in person and recording your details by hand is appealing, you can still find institutions offering passbook savings accounts. Bank customers would use a cheque book and passbook to balance their accounts. Any loan-related details would go here as well including the mode of payment.Įssentially, passbooks hearken back to a pre-internet form of banking when you’d need to meticulously keep paper-based records in the absence of computers and SMS alerts. Similarly for credit transactions, you’d use your passbook to keep track of deposit interest, receipts from third parties, and cash deposits. You’d also record all direct debit and pay order information, as well as details about self-payments to other accounts. How does a passbook work?Ī bank passbook is simply a physical log of your transactions, but what type of information should be recorded?įor debit transactions, you’d include all details about payments including payee name, method of payment, and name of the bank making a transfer. For example, a passbook savings account comes both with a physical notebook to record transactions, as well as competitive interest rates. While most banks now offer paperless alternatives to the old-fashioned passbook, you can still find some accounts with a passbook attached. ![]() It records on paper the details of all banking transactions, including elements such as: What is a passbook?Ī bank passbook is a physical notebook held by bank account holders. But what are your options if you prefer a more traditional approach? A passbook savings account might be worth considering. With the ubiquity of mobile wallets and banking apps, most of us never set foot inside a bank anymore. Banking has come a long way over the years.
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