The banking and financial services industry has undergone a lot of change in the past few years. The growth in the number of customers, branch banking and advancement of technology have compelled many leading, as well as small, banks and financial institutions to improve the quality of their services. In order to make managing finances easy for people. With the development of online or Internet banking, people these days prefer to view their account details by logging into their accounts online. However, there are many people who still go by the traditional method of updating their passbook. A passbook savings account is an account in which customers get a book which contains records of all their money debits and credits. With such a passbook, the people can easily find out how much money they have in their savings bank account any time they wish. Before we know why one should have this account, let us first understand the procedure of opening one.
Opening an Account
Before opening a savings account, you should visit different banks and financial institutions and inquire about the rate of interest which you would receive on the savings account. Naturally, you would be opening your account in a bank which offers the best interest on deposits. After choosing a bank, ask for a savings account opening form and fill all the details correctly. Along with the form, you will have to furnish details about the nine digit social security number given to you. At the same time, you will require some initial capital to open the account and it should be at least equal to the minimum amount which the bank requires for opening an account. Some banks may require signatures of one or two existing saving account holders to open the account. After verifying your details and application form, your account will get activated in a few days. Many banks will also provide you with an ATM card to access your account easily. While opening a savings account, you should also take interest and try to understand the difference between a savings and current account and other accounts.
Advantages and Disadvantages
A savings account provides you with information on money credited and withdrawn from your savings account. In the particulars column in your passbook, you get to know what kind of transaction took place in your account. Such a savings account can be ideal for people of all age groups and especially old people who may not be too net savvy. Though accounts can be accessed with the help of the user name and password, which you get from the bank, many people off late have been complaining about not getting the right statements or getting statements with several mistakes. Such problems will not arise, in case of savings bank passbook which you get updated from the bank itself. It is important that people are aware of the pros and cons of online banking for their own advantage. The interest which you get on a monthly, quarterly or annual basis adds to your bank balance. Simply put, there is a lot of transparency and good service received through an account such as this. Many banks also give you the option of opening joint savings account which can be accessed by multiple individuals.
However, there are a few cons of this type of account of which you must be aware. These accounts are an outdated form of managing your money in this age of Internet technology. You need to spend time and money on traveling to the bank and getting the passbook updated, when you can get your financial details by a single click using the Internet. Many banks require you to keep a minimum balance in your account and this can be very inconvenient for people who do not have large savings, especially some students. It has been observed that the interest received on savings account is less than other types of accounts such as fixed deposits. Also, if you lose your passbook, then you will have to take time out to get a new one by applying for the same.
This was all about the passbook savings account opening and operation. It entirely depends on the preference of the individual, whether to own a passbook or go for the Internet services. By understanding the different types of bank accounts, you will be able to open the right one, considering your needs. Hoping that you are satisfied with the explanation in this article, I would like to sign off here. Good luck!
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