For many, having a savings account is both practical and nostalgic given the rise of digital banking.
A simple ledger of money going in and out, and the interest earned, the simple passbook has been a mainstay of savings accounts for generations.
And according to a survey, nearly three in four members of the Leeds Building Society would prefer to use passbooks to manage their savings.
As a result, one of Britain’s largest mutuals has reassured customers that passbooks are here to stay.
End of an era: Lloyds Bank plans to scrap 2.6 million passbooks
It comes as Lloyds lays out plans to close millions of passbook savings accounts used by customers at the Halifax branch.
Certain Passbook accounts will be replaced by Instant Saver, Instant Isa Saver and Kids’ Saver accounts – all of which offer mobile banking and ATM cards.
Santander has also scrapped passbooks, as did Barclays when it bought Woolwich, and Nationwide no longer offers new passbook accounts.
Activists fear Lloyds’ measure will discriminate against the elderly and pave the way for more branch closures.
But it’s not just the elderly who want to keep their bank books. Research by Leeds Building Society shows that 58 percent of savers aged 16 to 44 would prefer to use a bank book to manage their accounts. This makes up the majority of customers they want to keep.
Passbook savings accounts come with a physical notebook, which allows the account holder to record their deposits and withdrawals.
Newcastle Building Society is another building society that offers passbooks and access cards to all of its industry clients, who make up about 200,000 savings members or about 54 percent of its depositors.
A spokesperson for the Newcastle Building Society says: ‘Clients tell us time and time again how much they appreciate the traditional passbook as a way to help them feel connected and take control of their savings.
“We’ve seen that when competitors stop offering passbooks, we usually see a spike in account opening from customers who prefer a more tangible way to keep track of their money.
“As a member-owned organization, we are committed to keeping our bankbooks up-to-date, as well as providing the friendly welcome, reassurance and service offerings that can only be found by visiting your local branch.”
‘That is why we are investing in our branch network and, unlike other providers, we are absolutely committed to better access to financial services – especially in places where banks are closed.’
Yorkshire Building Society also confirmed that its industry-focused products, including fixed rate ISAs and fixed rate bonds, offer passbooks.
‘I have the feeling that my generation has not been forgotten’
David Marr, 62, is a Newcastle Building Society customer from the Ponteland branch in Newcastle and uses a passbook.
David says, “I like that this makes it easy for me to see at a glance what we have on the bill if I need to. I am now 62 and have always been brought up with a passbook, call me old fashioned but I like being able to keep using it.
‘I also enjoy meeting the employees at the branch and having a chat on a regular basis.
“I feel like I haven’t been forgotten and my generation hasn’t been forgotten. It’s the personal approach that means a lot to me.
“I find it very sad that it feels like an era of passbooks is coming to an end, where the bigger banks are losing them.
“In that regard, the Newcastle Building Society stands out as they open more branches and allow passbooks to be used by their members.”
Richard Fearon, CEO of Leeds Building Society, says: ‘Bank books are an important way for many savers to gain full control over their money and we want to encourage this as much as possible.
“Many members are passionate about their passbooks and have told us they would look elsewhere if we decided to withdraw them, and we have no intention of doing that.
‘Anyone who opens a savings account in one of our branches can take a bank book with them on the spot.
“Obviously if preferences change significantly over time we should look at it again, but if you consider the strong feelings among younger savers, we don’t see any signs that that will happen any time soon.”
James Daley, managing director of Fairer Finance, comments: ‘It’s great that building societies keep passbooks as an option for those who want it.
“But inevitably there will be less demand for these accounts as more and more people move to doing all their banking online, and it’s no surprise that companies like Halifax are phasing them out.
“Obviously it is expensive to run a branch network, and it is not sustainable to maintain it for an ever smaller number of clients.
“However, as we move towards a more digital banking world, it is critical that banks and building societies ensure that they do not exclude people who have no other choice.
‘There are still many people who are digitally excluded or who cannot use digital banking due to a disability.
“It is important that banks and mortgage banks find ways to continue to serve these customers, and not penalize them with lower rates.”
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