Questions and Answers

For Regulation D purposes, there is really no difference between a passbook savings account and a statement savings account.  Both are considered a savings deposit under the law and restricted to no more than 6 transfers or withdrawals per calendar month.  See 12 CFR 204.(d)(1).

Generally speaking, a passbook saving account means the accountholder has to present the passbook to transact business on the account. Once the transaction is complete, the passbook is updated and given back to the accountholder.  A statement savings account operates more like a regular account whereas the accountholder is not limited to transactions in person.  The accountholder can make transactions via the telephone, ATM, etc. as well as in person.  As the name implies, a statement savings account provides the accountholder with an account statement on a regular basis. Some institutions also pay a higher rate on the statement savings account.

Ultimately how you differentiate between a passbook savings and a statement savings account is based upon your policies and procedures.  From a compliance standpoint, the key is to insure you handle the limitations on withdrawals properly.