Today’s society is very much technology orientated, and banking is certainly no exception. A passbook savings account may seem like a step back 20 years for some people, but if you seriously consider the benefits they offer you may actually think twice.
This type of savings account requires a little more hands on maintenance than your average accounts today such as a second chance checking account. A small book is used to keep track of your withdrawals and deposits which require the account holder update as necessary. If this is done properly and regularly it shouldn’t take more than a minute or two each time.
A passbook savings account has the huge benefit of making savings much easier. The reason for this is your money is not easily accessible. While it may not be an ideal solution for an everyday checking account, it’s ideal for someone who is serious about saving. Or perhaps someone who finds it difficult to save with the temptation of money that is easy to access. These savings accounts usually require you to fill out withdrawal forms and visit a local branch to withdraw your money. Some even may require you to wait a few days before the money is able to be physically withdrawn. While this may sound restrictive you can see how it would be easier to just leave the money there and let it accumulate. Before you know it your balance is skyrocketing.
With the majority of the population experiencing some form of debt throughout their lives, often very serious debt, surely the benefit of having savings up your sleeve far outweigh the annoyance of having to visit a bank branch to withdrawal some money. Also budgeting and keeping track of our own finances is not taught in schools so what better way for the younger generation to see how a good savings account can work than with this sort of account.
Another savings your likely to make is on basic account fees. If you don’t have internet banking, telephone banking, ATM cards and check books then you simply won’t have to pay for them. Your savings starts as soon as you open the account.
Perhaps it may be a little old fashioned, but a passbook savings account can bring a little of the past into the present and teach us a little more about managing our own finances. Our grandparents probably didn’t have half the financial stress we do these days so can it really hurt to try it there way for a change?