A savings book is a type of bank account used by individuals primarily for the purposes of saving money for the future. Depending on the bank, it could also be called simply a "savings account". The name "savings book" comes from the fact that most banks would give you the option of having a passbook that is updated every time a transaction such as a deposit, withdrawal, or funds transfer is made at the bank. However, the majority of banks today are doing away with the passbook and send you a monthly statement or give you an electronic account statement that can be viewed online.
Savings book account typically offer little interest when compared with other types of investments offered by the bank, such as term deposits. Many banks pay an interest rate that depends on the amount of money that you keep in the bank. The advantage of a savings book is that there are usually little or no restrictions on transferring or withdrawing money from the account. However, banks may charge a fee per withdrawal or transfer.
Due to the popularity of electronic and self-serve banking, most banks would also offer you an ATM card as well as access to online or telephone banking services with this type of account. This can make it easy for customers to make transactions and view account balances and records without having to visit the bank. If you have other accounts at the bank, such as a checking account, this could allow you to easily transfer money that you want to save from the checking account to your savings account. Certain banks also give you the opportunity to automatically transfer a certain amount each month from your checking account, to make saving money more convenient for their customers.