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Thinking about swapping your old-school passbook for a newer style savings account?

Tuesday, 19 February 2019

By Mark Evans, Product Manager

If you’re a long-time holder of a passbook account, there’s every chance you like how you manage your savings. Perhaps you’d rather use the branch for making deposits or withdrawals when you need to, or you like that your funds are harder to access which helps you reach your savings goals faster.

We understand. But while a passbook account can offer familiarity and a sense of security, and they’re still popular with many customers, passbook accounts are rapidly being eclipsed by newer style accounts – and for good reasons. Saving for your next big holiday or a deposit on a house could happen faster if your money was in a newer style account.

Key reasons why a newer style savings accounts makes more sense

1. They’re a more convenient way to helping you manage your money.

A passbook account only really offers you access via a branch and potentially via internet banking to view your savings. New style savings accounts offer a number of access options including branch, internet and ATM access. While you may usually leave your savings alone, flexible access can be handy in a pickle. Say you’ve finally got the plumber coming over, but they need to be paid in cash and the bank’s closed. With a Visa Debit card, you’d be able to nip down to your nearest ATM, withdraw the money you need for the tradie, and be on your way.

2. More interest in your pocket.

Passbook accounts are considered an old or obsolete product by most financial institutions and in many cases have been superseded by savings accounts with more competitive interest rates. As a result, passbook accounts may receive lower interest rates or come with higher transaction fees that could otherwise be avoided. If you compare your current passbook account to newer style savings accounts with debit cards, you’ll see that many offer a variety of benefits, including typically higher interest rates and lower fees.

3. It’s easy to access statements, transactions and balances.

Need to confirm that a deposit went into your account, or a purchase was successful? With access to internet banking, it’s a simple matter to log in and search for the transaction, or perhaps access a previous statement within minutes when it’s time to do your tax. You can also have your statements emailed or mailed to you.

4. Replacing lost cards is no biggie.

If you lose your passbook, you may have to visit a branch, request a duplicate passbook, and produce documents that support your identity. If you lose your debit card, you can log onto your internet banking or an app, check your balance and complete any urgent transactions. You also have the ability to immediately block your card from fraudulent use as soon as you become aware it’s missing via internet banking or by contacting your bank.

Like to know more? Chat to us about how you can convert your account to a new style savings account.

This article is intended to provide general information of an educational nature only. It does not have regard to your objectives, financial situation or needs and must not be relied upon as financial product advice. Before you act on this information, you should consider whether it is appropriate for your circumstances. Information in this article is current as at the date of publication. Information in this article is current as at the date of publication. Applications subject to credit approval and fees and charges are payable. Terms and conditions apply and are available on request. You should consider the Terms and Conditions. Fees and charges may apply. Newcastle Permanent Visa Debit cards are subject to approval and can be used wherever Visa is accepted worldwide.

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