Passbooks: Cheap and Reliable

By: Melissa and Patrick

What is a passbook?

  • It’s a basic, low-tech savings account that requires the customer to go into the bank branch to make deposits and withdrawals, which are stamped into the account’s small, bound passbook.
  • The accounts typically have no minimum balance requirement, pay meager interest and have few fees. A passbook savings account is a banking throwback that’s still just fine for other people.

Advantages and Disadvantages...


  • All transactions are recorded

  • More safe transactions (some people do not trust ATMs) - withdrawals are made in person

  • Do not use ATM card to withdrawal or deposit

  • Usually have no fees or monthly balance requirements

  • FDIC insurance will cover most of these accounts


  • Do not use ATM card to withdrawal or deposit

  • Lower interest rates

  • If you are not organized - no monthly statement