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.
History
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—one in four Britons—with £283 million on deposit.
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.
In 1956, it launched a lottery bond, the Premium Bond, which became its most popular savings certificate.
Post Office Savings Bank became National Savings Bank in 1969, later renamed National Savings and Investments, an agency of HM Treasury. While continuing to offer National Savings services, the General Post Office, created the National Giro in 1968.
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, 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
Austria
In Austria, the Österreichische Post used to own the Österreichische Postsparkasse. 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 formed a partnership with the largest private bank in the country to provide financial services at post offices. The current partnership is with Bank of Brazil.Bulgaria
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.Canada
offered banking services via its Post Office Savings Bank, created by the Post Office Act in April 1868, less than a year following the nation's confederation. A century later, the Post Office Savings Bank was shut down in 1968-69. Since at least the early 2010s, postal banking has been discussed and studied periodically, with postal unions backing the idea.China
In the People's Republic of China, the Postal Savings Bank of China was split from China Post in 2007 and established as a state-owned limited company. It continues to provide banking services at post offices and, at the same time, some separated branches.Finland
In Finland, Postisäästöpankki was founded in 1887. In 1970 its name was shortened to Postipankki. 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".Germany
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. Postal banking services are still available at all branches of Deutsche Post and Deutsche Postbank.Greece
provided banking services from post offices until 2013 when it was replaced by New TT Hellenic Postbank a subsidiary of Eurobank Group.Hungary
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 Postatakarékpénztár.India
provides small banking and financial services, under Indian Postal services.Indonesia
Postal savings in Indonesia began with the establishment of the Netherlands Indian Post Office Savings Bank in 1897. During the Japanese occupation of Indonesia, it was replaced by the Savings Office and savings were encouraged by the military administration to support the Greater East Asia War. The Savings Office became the Post Office Savings Bank again after independence, before renamed into the current State Savings Bank, or Bank Tabungan Negara in 1963. Between 1963 and 1968, it became the Fifth Unit of Bank Negara Indonesia during the single-bank system, made to support the guided democracy.Currently, BTN offers a savings plan that allows its users to deposit in post offices.
Ireland
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.Italy
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.Japan
, part of the post office was the world's largest savings bank with 198 trillion yen of deposits as of 2006, much from conservative, risk-averse citizens. 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.Kenya
Korea
, 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.Netherlands
In 1881 the Dutch government founded the Rijkspostspaarbank. 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. 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.
Norway
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.Philippines
The Philippine Postal Savings Bank, 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.Portugal
In Portugal, the CTT own 100% of the Banco CTT, which has been operating since 2015 throughout Portugal.Singapore
of Singapore, stands for Post Office Savings Bank. Now part of DBS Bank.South Africa
, operated by the South African Post Office. Offers transactional, savings, investments, insurance & pension banking services.Sri Lanka
In Sri Lanka, National Savings Bank and Sri Lanka Post provide banking services through post offices.Taiwan
In Taiwan, the Chunghwa Post provides savings accounts and Visa debit card services in the Free Area of the Republic of China.Thailand
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 BankUnited 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 National Savings and Investments' services, and include instant savings, Individual Savings Accounts, seasonal savings and savings bonds.
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. 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.