Postal Savings System

Postal savings systems provide depositors who do not have access to banks a safe and convenient method to save money. Many nations have operated banking systems involving post offices to promote saving money among the poor.


A page with a pre-printed table. It has handwritten entries showing amounts of deposits and withdrawals, and the balance. Each entry has a post office date stamp.
This 1869 deposit book would be carried by the customer, and is a typical record of a British Post Office Savings Bank savings account.

In 1861, Great Britain became the first nation to offer such an arrangement. It was supported by Sir Rowland Hill, who successfully advocated the penny post, and William Ewart Gladstone, then Chancellor of the Exchequer, who saw it as a cheap way to finance the public debt. At the time, banks were mainly in the cities and largely catered to wealthy customers. Rural citizens and the poor had no choice but to keep their funds at home or on their persons.

The original Post Office Savings Bank was limited to deposits of 30 per year with a maximum balance of 150. Interest was paid at the rate of 2.5 percent per annum on whole pounds in the account. Later, the limits were raised to a maximum of 500 per year in deposits with no limit on the total amount. Within five years of the system's establishment, there were over 600,000 accounts and 8.2 million on deposit. By 1927, there were twelve million accounts%u2014one in four Britons%u2014with 283 million (15,502 million today) on deposit.[1]

The British system first offered only savings accounts. In 1880, it also became a retail outlet for government bonds, and in 1916 introduced war savings certificates, which were renamed National Savings Certificates in 1920.[2] In 1956, it launched a lottery bond, the Premium Bond, which became its most popular savings certificate.[2] Post Office Savings Bank became National Savings Bank in 1969, later renamed National Savings and Investments (NS&I), an agency of HM Treasury. While continuing to offer National Savings services, the (then) General Post Office, created the National Giro in 1968 (privatized as Girobank and acquired by Alliance & Leicester in 1989).

Many other countries adopted such systems soon afterwards. Japan established a postal savings system in 1875 and the Netherlands government started a systems in 1881 under the name Rijkspostspaarbank (national postal savings bank), this was followed by many other countries over the next 50 years. The later part of the 20th century saw a reversal where these systems were abolished or privatized.

By country


The Austrian Postal Savings Bank (P.S.K.) in Vienna

In Austria, the sterreichische Post used to own the sterreichische Postsparkasse (P.S.K.). This financial institute was bought and merged by the BAWAG in 2005.


Brazil instituted a postal banking system in 2002, where the national postal service (ECT) formed a partnership with the largest private bank in the country (Bradesco) to provide financial services at post offices. The current partnership is with Bank of Brazil.


In Bulgaria, the postal banking system was a subsidiary of Bulgarian Posts until 1991, when Bulgarian Postbank was created. In the years that followed, Bulgarian Postbank was privatized and the relationship between post offices and bank offices became weaker. Postal banking services ceased to be available in post offices in 2011.


In Canada, Canada Post had a postal bank but it was shut down in 1968.[3]


Post office in Shanghai offering postal savings services

In the People's Republic of China, the Postal Savings Bank of China (zh:) was split from China Post in 2007 and established as a state-owned limited company. It continues to provide banking services at post offices.


In Finland, Postisstpankki ("Post Savings Bank") was founded in 1887. In 1970 its name was shortened to Postipankki ("Post Bank"). In 1998 it was changed to a commercial bank named Leonia Bank. Later, it was merged with an insurance company to form Sampo Group, and the bank was renamed Sampo Bank. It had a few own offices, but also post offices performed its banking operations until 2000. In 2007, Sampo Bank was sold to the Danish Danske Bank.


France's La Poste, similar to the UK's Post Office, offer banking services called "La banque Postale".


Deutsche Postbank has a postal banking system. Deutsche Postbank was a subsidiary of Deutsche Post until 2008, when 30% of Deutsche Post's shares were sold to Deutsche Bank.[4] Postal banking services are still available at all branches of Deutsche Post and Deutsche Postbank.


Greek Postal Savings Bank provided banking services from post offices until 2013 when it was replaced by New TT Hellenic Postbank a subsidiary of Eurobank Group.


In 1919 the Postal Savings Bank notes were issued under the decree of the Revolutionary Governing Council of the Hungarian Soviet Republic by the Magyar Postatakarkpnztr (Hungarian Postal Savings Bank).


India post, operated by Government of India, under Indian Postal services providing small savings banking and financial services, including National Savings Certificates.


In Italy, the Postal savings system is run by Poste italiane, the Italian postal service company. Poste italiane run this service along with Cassa Depositi e Prestiti.


In Ireland, An Post ran Postbank between 2006 and its closure in 2010, that was a joint venture with Fortis Bank Belgium.


Israel's postal service Israel Postal Company offers utility payment, savings and checking accounts, as well as foreign currency exchange services from all post offices.[5]


Japan Post Bank, part of the post office was the world's largest savings bank with 198 trillion yen (US$1.7 trillion) of deposits as of 2006,[6] much from conservative, risk-averse citizens. The government was criticized for using these funds to engage in uneconomical infrastructure projects%u2014what in America would be called pork barrel spending. The state-owned Japan Post Bank business unit of Japan Post was formed in 2007, as part of a ten-year privatization programme, intended to achieve fully private ownership of the postal system by 2017.[7]


Kenya Post Office Savings Bank (KPOSB/Postbank) [8]


Korea Post, operated by South Korean government, has its postal banking and postal insurance business since 1982. Banking counter and ATM is available in all post office, excluding postal agencies and delivery centers. Korea Post ATM is connected with all national and regional banks via KFTC. Banking counter is also opened for Korea Development Bank, Industrial Bank, Citibank Korea, and Jeonbuk Bank customers.


In 1881 the Dutch government founded the Rijkspostspaarbank (National Postal Savings Bank). In 1986 it was privatised, together with the Postgiro service, as the Postbank N.V. Postbank merged with a commercial bank that would eventually become ING Bank.

New Zealand

Post Office Savings Bank was established in 1867 by the New Zealand government to give New Zealand investors a place to deposit their savings.[9][10] This included the provision of children's savings accounts known as Post Office Squirrel savings account. The Post Office Savings bank was split into PostBank in 1987 and was acquired by a commercial bank two years later ending the bank.

In 2002 the New Zealand government created a new state owned post bank called Kiwibank as part of the New Zealand Post to again establish a postal savings system.[11]


Postbanken was founded in 1948 after major political battle as Norges Postsparebank, however the maximum amount allowed to be saved per person was set to NOK 10,000. In 1948 the bank had services provided at 3,600 post offices and post outlets. It was sold in 1999 and became part of the commercial bank DNB ASA.


The Philippine Postal Savings Bank (PPSB), also known as PostalBank, is the state-owned postal savings system in the Philippines. It is the smallest of the Philippines' three state-owned banks and is governed separately from PhilPost. In late 2017, state bank Land Bank of the Philippines acquired PPSB at zero value and made it as a subsidiary. It is now known as Overseas Filipino Bank.


In Portugal, the CTT owned 49% of the Banco Postal, with Caixa Geral de Depsitos (the independently state-owned bank) owning the remaining 51%. This partnership did not go well, and eventually Caixa Geral de Depsitos bought and absorbed the bank.


POSB Bank of Singapore, stands for Post Office Savings Bank. Now part of DBS Bank (Development Bank of Singapore).

South Africa

Postbank (South Africa), operated by the South African Post Office (SAPO). Offers transactional, savings, investments, insurance & pension banking services.[12]

Sri Lanka

In Sri Lanka, National Savings Bank and Sri Lanka Post provide banking services through post offices.


In Taiwan, the Chunghwa Post provides savings accounts and Visa debit card services in the Free Area of the Republic of China.


Between 1 April 1929 to 31 March 1947, the Post and Telegraph Department of the Ministry of Commerce and Transportation of Thailand has run Saving Office before becoming Government Savings Bank (GSB)[13]


Lien Viet Post Joint Stock Commercial Bank or LienVietPostBank (LPB), formerly known as LienVietBank, is a Vietnamese retail bank that provides banking products and services through its own transaction points across 42 cities and provinces and 1,031 postal transaction offices nationwide. LienVietPostBank is considered to be in the top 10 biggest banks in terms of assets and equity [2] and ranked 36th in VNR500 -Top 500 largest private companies in Vietnam in 2013. The Bank is striving to become the bank for everyone in Vietnam by focusing on banking products for households and small and medium enterprises especially in the agriculture sector, and expanding its activities to rural and remote areas via the post.

United Kingdom

The Post Office Ltd offers savings accounts based on its brand, and is operated by the Bank of Ireland, a commercial bank and Family Investments, a friendly society.

The Post Office branded services are similar to some of NS&I's services, and include instant savings, Individual Savings Accounts, seasonal savings and savings bonds.[14][15][16][17] Post Office Ltd also provides a Post Office card account that accepts only direct deposits of certain state pension and welfare payments, permitting cash withdrawals over the counter.[18] This last account is offered in partnership with the Department for Work and Pensions until 2010, through investment banking and asset management company JP Morgan. (This contract has recently been awarded to JP Morgan to run till 2015)

United States

In the United States, the United States Postal Savings System was established in 1911 under the Act of June 25, 1910 (36 Stat. 814). It was discontinued by the Act of March 28, 1966 (80 Stat. 92).

See also


  1. ^ United States, National Monetary Commission (1910). Notes on the postal savings-bank systems of the leading countries. Washington: Govt. print. off. pp. 7-8. 
  2. ^ a b "Business history records: Post Office Savings Bank". British Postal Museum & Archive. 
  3. ^ Cox, Ethan (2013-12-16). "How to save Canada Post." National Post
  4. ^ Seib, Christine (13 September 2008). "Deutsche Bank makes 2.2bn U-turn to buy stake in Postbank". The Times. Retrieved . 
  5. ^ "Israel Postal Company - ? ? ". Retrieved . 
  6. ^ "Japan Bank Lobby's New Chief Wants Brokerage Barriers Lifted". 2007-04-24. 
  7. ^ Griemel, Hans (2007-03-31). "Privatization of Japan's postal colossus sparks competition fears". Taipei Times. Tokyo. Associated Press. p. 9. 
  8. ^ "..:: Welcome to Kenya Post Office Savings Bank :: At Your Service Countrywide in | Nairobi | Mt Kenya | Riftvalley | Coast | Western | ::." Retrieved . 
  9. ^ "ANZ Corporate Information: History of ANZ". ANZ. Retrieved 2015. 
  10. ^ "THE POST OFFICE SAVINGS BANK". 1966 Encyclopaedia of New Zealand. Ministry for Culture and Heritage. 1966. Retrieved 2015. 
  11. ^ Stock, Rob (c. 2008). "About Kiwibank". Kiwibank, external information. Kiwibank. Retrieved . 
  12. ^
  13. ^ ? - ? (in Thai). . Retrieved 2016. 
  14. ^ "Growth Bonds". Post Office Ltd. Retrieved . 
  15. ^ "Christmas Club". Post Office Ltd. Retrieved . 
  16. ^ "Post Office ISA". Post Office Ltd. Retrieved . 
  17. ^ "Instant Saver". Post Office Ltd. Retrieved . 
  18. ^ "Post Office card account". Post Office Ltd. Retrieved . 

Additional reading

  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.


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