Could Postal Banking Save You Money—and the Post Office?

Indeed, postal banking was available for more than 50 years. In 1911, Congress encouraged individuals—predominantly immigrants—to make savings deposits in the Postal Savings System (PSS), rather than hiding cash at home. The system peaked in popularity in the 1930s, when few trusted the banks after numerous bank runs and failures.1

PSS operated as a middleman of sorts, offering security to the depositor and a source of cheap, low-interest-rate cash for local banks. It worked like this:
  1. The depositor received a 2% interest rate from the PSS, and a guarantee in an era before the Federal Deposit Insurance Corp. (FDIC) insured deposits.
  2. The PSS then put the cash into a local bank.
  3. The banks only paid the PSS 2.25%, a lower interest rate than what they paid to other depositors.
  4. The bank then lent the money to community businesses, pocketing any profits made on the difference.

The system was phased out in 1967, as more consumers turned to now-FDIC-insured banks and higher-rate U.S. bonds for better returns. However, the USPS still provides money orders, electronic fund transfers, and U.S. Treasury check-cashing services.

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Management would f#ck that up!

Management can’t even accurately separate mail in the morning. Carriers are given pieces that are 3-4 hrs long, and management proclaims the pieces to be 1hr. The DOIS system is from the 1980s and underestimates routes by a good 2 hrs. USPS is the poster child for unfair labor practices and abuse. The budget is so messed up because of management dishonesty.

The Postal Service in Banking??? You would have to be crazy.
They were to pay their employees their paychecks yesterday 2/19/21 that receive them by mail and couldn’t even do that. Those that receive their checks by US MAIL didn’t get paid and were told perhaps Monday.
Do you think that they can take care of YOUR MONEY?????????