Passbooks are referred to simple paper books that include pages that are intended for use along with simple accounting notations regarding a bank account. Sometimes these passbooks are referred to as a bank book. The passbook was considered to be the most common means by which he banks keep up with the current balance in a savings account for many years. Due to the reason that the design of the passbook allowed the record to fit easily into a lapel pocket or purse, so it was an easy thing to take the passbook along to the bank when making a deposit or withdrawal.

Format for the pages in a passbook

The format for the pages in a passbook is very simple format. On each page columns are found that provide in which the date and type of the transaction, the amount of the deposit or withdrawal, and the adjusted balance in the account is entered. Any interest that is earned on the bank account would be recorded in the passbook as a credit to the account, while any withdrawal would be recorded as a debit.

Bank personnel would record and initial the transaction

In earlier times, the account holder was not that person who makes notations in the passbook. Instead, of that the customer would have to take the passbook along to the bank when making a deposit or withdrawal. Bank personnel would record and initial the transaction in the appropriate columns. Some banks had a procedure in which tellers and other bank officers who handled transactions were required to also initial the activity in the passbook. When this was the case, a specific column was added for this purpose.

Need of passbooks diminishes slowly

Since the advent of the home computer this practice has diminished considerably, while there are banks that still provide a passbook to customers. Today, there are many banks by which the customers are allowed to access account information online, and download the detail into financial accounting software programs. Due to this the customer were allowed to still access a bank-generated record of the current balance in the account that includes any interest payments on the balance eliminating the need for bankbooks altogether.

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