United States Postal Savings System
Encyclopedia
The United States Postal Savings System was a postal savings system
operated by the United States Postal Service
from January 1, 1911 until July 1, 1967. The system paid depositors 2 percent annual interest. Depositors in the system were initially limited to hold a balance of $500, but this was raised to $1,000 in 1916 and to $2,500 in 1918. At its peak in 1947, the system held almost $3.4 billion in deposits. The system originally had a natural advantage over deposit-taking private banks because the deposits were always backed by "the full faith and credit of the United States Government." However, because the Federal Deposit Insurance Corporation
gave the same guarantee to depositors in private banks, the Postal Savings System lost its natural advantage in trust.
, the locations of the central depositories for the first 19 states were established, followed the next day by 25 others. The post offices were selected by merit rather than geography, based on those with the best efficiency record in the state.
Postal savings system
Many nations' post offices operated or continue to operate postal savings systems to provide depositors who do not have access to banks a safe, convenient method to save money and to promote saving among the poor.-Great Britain:...
operated by the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
from January 1, 1911 until July 1, 1967. The system paid depositors 2 percent annual interest. Depositors in the system were initially limited to hold a balance of $500, but this was raised to $1,000 in 1916 and to $2,500 in 1918. At its peak in 1947, the system held almost $3.4 billion in deposits. The system originally had a natural advantage over deposit-taking private banks because the deposits were always backed by "the full faith and credit of the United States Government." However, because the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
gave the same guarantee to depositors in private banks, the Postal Savings System lost its natural advantage in trust.
Locations
On March 26, 1911March 1911
January - February - March - April - May - June - July - August - September - October - November - DecemberThe following events occurred in March 1911:-March 1, 1911 :...
, the locations of the central depositories for the first 19 states were established, followed the next day by 25 others. The post offices were selected by merit rather than geography, based on those with the best efficiency record in the state.
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- Provo, UtahProvo, UtahProvo is the third largest city in the U.S. state of Utah, located about south of Salt Lake City along the Wasatch Front. Provo is the county seat of Utah County and lies between the cities of Orem to the north and Springville to the south...
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External links
- http://books.google.com/books?id=ouUnAAAAYAAJ&pg=PA157&lpg=PA157&dq=%22on+March+26,+1911%22+-wiki+-born&source=bl&ots=FfLWFxmtA4&sig=aS2YBt6s8rt8tA8A1MWhIoqFCFY&hl=en&ei=fiozTay8JsXPgAfl1YS2Cw&sa=X&oi=book_result&ct=result&resnum=5&ved=0CC4Q6AEwBDgo#v=onepage&q=%22on%20March%2026%2C%201911%22%20-wiki%20-born&f=true"Postal Savings Stamps of U.S.", by H.L. Wiley, "Mekeel's Weekly Stamp News", May 2, 1914, p1]