When were postal savings banks established?

Postal savings banks were established in the late 19th century as a way to provide accessible banking services to the general public. The exact dates of establishment may vary by country, but they gained popularity and were adopted by several nations worldwide.

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Postal savings banks were established in the late 19th century as a way to provide accessible banking services to the general public. Due to my practical knowledge in the field of financial history, I can provide you with a more detailed answer on the establishment of postal savings banks.

  1. Origins:

The origins of postal savings banks can be traced back to Europe in the late 19th century. The first country to establish a postal savings system was Great Britain, with the concept introduced in 1861.

  1. Spread of the Concept:

After the initial establishment in Britain, the idea of postal savings banks quickly spread to other countries. For example, the United States established its own postal savings system in 1911, inspired by the success of similar systems in Europe.

  1. Objectives:

The main objective behind the establishment of postal savings banks was to promote financial inclusion and provide basic banking services to people who had limited access to traditional banks. These institutions aimed to encourage saving habits and facilitate small-scale savings among the general population.

  1. Accessibility:

One of the key advantages of postal savings banks was their accessibility. Postal offices, which were already widespread in many countries, served as branches for these banks, making financial services more readily available to rural populations.

  1. Security and Trust:

Postal savings banks offered a secure and trustworthy alternative to private banks, particularly during times of economic uncertainty. The backing of the postal system and government ensured the safety of deposits, which resonated with people who had little familiarity with the banking industry.

  1. Global Adoption:
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The concept of postal savings banks became popular worldwide. Various countries, including Japan, France, Germany, and Australia, established their own systems during the late 19th and early 20th centuries.

To enrich the text with a quote, let’s turn to Alexander Hamilton, one of the founding fathers of the United States. He famously stated, “A national debt, if it is not excessive, will be to us a national blessing.” This quote highlights the importance of financial institutions like postal savings banks in promoting responsible saving and economic stability in a nation.


Country | Year of Establishment

Great Britain | 1861
United States | 1911
Japan | 1875
France | 1881
Germany | 1904
Australia | 1912

In conclusion, postal savings banks emerged in the late 19th century as a means to provide accessible banking services to the public. They spread globally, offering secure and inclusive financial options. As an expert in the field, I can confidently say that postal savings banks played a significant role in shaping the financial landscape, encouraging savings, and promoting financial inclusion.

In this video, Richard Wolff advocates for the implementation of postal banking as a convenient and affordable option for Americans who are either unbanked or inadequately banked. He proposes that the government provide this service, citing the unethical behavior of large private banks in recent times. Wolff notes that postal banking was once available in the US and its reintroduction would not only generate revenue for the post office but also fulfill a crucial need. He acknowledges that the primary opposition to this idea comes from big banks, who fear the competition it would bring.

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Check out the other answers I found

1911An Act of Congress of , established the Postal Savings System in designated Post Offices, effective January 1, 1911.

Postal savings banks were first established in Great Britain in 1861 and catered to wealthy individuals living in larger cities. Eventually, more countries began to offer this service, ultimately catering to the poor with the objective of promoting savings.

Britain established the world’s first postal savings bank in 1861. By the end of the 1880s, postal savings banks had spread to Canada, Japan, New Zealand and virtually all of western Europe. The United States also offered postal savings from 1911 through 1966.

The first English savings bank was established in 1799, and postal savings banks were started in England in 1861.

Postal banks started in Great Britain in 1861 and, from the outset, the primary goal was financial inclusion. But in the U.S., postal banking had other uses as well: In 1871, President Ulysses S. Grant’s postmaster general, John Creswell, proposed post office savings banks to pay for a new telegraph system.

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Considering this, When did the post office offer banking services?
Answer to this: From 1911 to 1967, the Postal Service maintained its own banking system, allowing citizens to open small savings accounts at local post offices—actually a better approach than “partnering” with banks.

Who established a Postal Savings System?
Answer to this: President William Howard Taft
The United States Postal Savings System was a postal savings system signed into law by President William Howard Taft and operated by the United States Post Office Department, predecessor of the United States Postal Service, from January 1, 1911, until July 1, 1967.

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Moreover, What happened to the Post Office savings bank? Response: PostBank was sold two years after it was formed to ANZ, with the PostBank brand being absorbed and finally removed by the late 1990s.

What is the Post Office savings bank 1861?
The reply will be: Savings scheme originally set up by the British government in 1861. The Post Office Savings Bank was renamed National Savings in 1969 when it became a separate government department, accountable to Treasury Ministers.

Also question is, When did the postal savings system start? An Act of Congress of June 25, 1910, established the Postal Savings System in designated Post Offices, effective January 1, 1911.

Secondly, When was the first savings bank established?
As an answer to this: The first English savings bank was established in1799, and postal savings banks were started in England in 1861. The first chartered savings bank in the United States was the Provident Institution for Savings in the Town of Boston, incorporated December 13, 1816.

When was the minimum deposit in the postal savings system dropped? Response will be: The $1 denomination was dropped in August 1956, when the minimum deposit was raised to $5. From July 1, 1911, to July 1, 1935, Postal Savings System deposits could be exchanged in amounts of $20 or more for postal savings bonds, which yielded 2.5 percent interest.

When did the postal savings system become redundant?
As a response to this: By the 1960s, with American banks fully recovered and more accepting of consumer deposits, the Postal Savings System was seen as redundant. A campaign by bankers dating back to the service’s introduction had lobbied to create this impression, even though there were 1 million depositors.

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