A savings vehicle traditionally employed by community banks. The account owner is given a passbook - a small, portable ledger - in which all account transactions are recorded, including deposits, withdrawals, and accrued interest.
An account that a bank or savings institution issues to keep record of deposits, withdrawals, and interest earned in the savings account. Usually pays a very low interest rate.
A bank account that is very liquid but usually pays a very low interest rate. Passbook accounts should be used for emergency savings and short-term goals.