What is a passbook account?

If you ever wonder what a passbook account is, here’s a modern, clear explanation.

Definition of a Passbook Account

A passbook account is a traditional deposit account like a savings account (for example, at Commonwealth Bank) where all transactions were recorded physically in a passbook.

How It Worked

All deposits, withdrawals and interest entries were hand‑entered by bank staff into a paper booklet that you presented when visiting a branch.

Why It’s Rare Today

These accounts are now mostly phased out by Australian banks—as most account activity is tracked electronically via mobile or online banking, making passbooks largely obsolete.

Legacy Support at Commonwealth Bank

Commonwealth Bank still maintains passbook savings or Pensioner Security passbook accounts (no longer offered to new customers). These legacy accounts may incur a monthly fee for active passbook usage, but fees are often waived in special circumstances, such as for eligible pensioner customers or those with a disability needing branch access.

Transition to Digital Alternatives

During recent lockdowns, Commonwealth Bank offered existing passbook customers a transaction account with a linked Debit Mastercard, enabling withdrawals or payments without a branch visit. They continue to support passbook holders while encouraging digital methods.