Passbook Savings Account: Save the Thrifty Way
© - 2006 SavingsAccounts.Factslink.com

Defined Tag: Passbook Savings Account.
Opening a passbook savings account is indeed saving the “old fashioned way” or saving the thrifty way. A passbook account is the lowest-maintenance, lowest-cost option you can possibly use for opening an account at your local bank.

So what generally constitutes a passbook savings account? Usually a passbook savings account does  not offer monthly statements, as you would receive with a savings or checking account. Additionally, a passbook savings account usually will not allow you to make any ATM withdrawals and will not give you a card. It also will not allow you to tap into the bank's electronic filing system to get line-item histories of your withdrawals.

So what perks do you get for ceding all of these seemingly important perks? You get a little booklet that you bring into the bank whenever you want to make a deposit or a withdrawal. The teller will stamp this booklet with your deposit or withdrawal amount and with your current balance. In addition to this, you will also get the lowest possible fee rate. In most banks, no fees will be charged for a passbook savings account, which is important if you are holding small amounts and aren't really interested in any frills.

The passbook savings account is usually ideal for people who aren't interested in complicated savings methods. It is also interested in people who aren't interested in liquidity; although they technically can make an unlimited amount of withdrawals, the money is considerably less liquid than an online account. It is also ideal for younger people, who want to open an account to learn something about saving, but do not yet have a large enough source of income to maintain an account that would incur minimum penalties.

© - 2006 SavingsAccounts.Factslink.com