Editor’s note: This is a transcript of the audio file.
Passbook savings accounts have waned in popularity for years, but they are still offered by many banks. This is Rose Raymond with Bankrate.com’s Personal Finance Minute.
These savings accounts typically don’t require a minimum balance but do require savers to come into the bank to deposit and withdraw money.
While many like the convenience of online banking, Bankrate.com offers three reasons why passbook savings accounts aren’t passé.
Passbook savings offer tangibility. For certain consumers who aren’t comfortable with online accounts, it’s an attractive feature to have an official-looking book to view like a passbook.
Parents also like passbook accounts as a way to teach their kids about savings. They can give them the physical book where they can see the recorded sum growing.
For those less disciplined or who often spend their savings, a passbook account may be the answer. You can’t swipe an ATM card to get money out. Instead, you have to go see a teller.
Some folks may use passbook savings to save for a specific goal. The recorded total can give them confidence they will eventually meet it.
But passbook savings are just one way to save. To find out more, visit Bankrate.com. I’m Rose Raymond.