Post Office Helps Customers Grow Savings

Post office helps customers grow savings

Postal banking systems are not an uncommon service in several parts of the world. Post Offices in Japan, Germany and South Korea are a few examples of where individuals can drop off a deposit into their bank account and pick up a book of stamps in the same trip. Besides depositing and withdrawing funds, one particular postal bank offers a variety of ways in which individuals can invest their funds for future growth.

India Post offers its customers several types of savings accounts and certificates to suit individual needs. From basic savings accounts offering a 4 percent yield to age-restricted savings instruments offering a 9.2 percent yield, the organization has many avenues of opportunity for individuals to plan their financial futures. In 2014, India Post expanded its lineup of investment options by introducing the Kisan Vikas Patra, an investment certificate that promises to double an individual’s investment in 100 months.

The Kisan Vikas Patra can be purchased in specific denominations with no maximum investment ceiling. The certificate can be transferred from one person to another or purchased on behalf of a minor, but it cannot be acquired by businesses or individuals other than citizens of India.

As stock markets around the world continue their volatile maneuvering, a safer investment option with higher yields might be an appealing avenue for those investors seeking an alternative to corporate equities.

Do you think USPS could offer similar investment opportunities to its customers in the future?

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5 Comments

  1. grannybunny

     /  April 27, 2015

    I absolutely believe that USPS could — and should — offer such banking services.

  2. Anonymous

     /  April 28, 2015

    Where can India Post get 4%, 9.2%, and 50% (!!!!) return on investment for their banking customers? For my accounts, it has been a struggle to find someplace I can get 3%.

    Certainly, USPS has no profit to use for paying banking customers interest.

    I must be missing something.
    How could getting into the banking business be good for USPS?
    How would it be regulated?? (Wouldn’t it be regulated to death – like we are struggling with right now???)
    Where would the lines be drawn: savings accounts – debit cards – loans – home mortgages ?
    Who covers the cost of bad debt (loans defaulted upon)?

    • grannybunny

       /  April 28, 2015

      The American Post Office previously offered some banking services. As a child, I had a Post Office savings account. It was wonderful. A postal employee came to our school every week to collect our meager deposits — literally, pocket change — and update our bank books. It started a lifelong habit of saving. I’m guessing that India has a higher rate of inflation that the U. S. currently does, but I also note that the highest return requires years to mature, similar to our savings bonds. Other countries still have postal banking. In fact, the largest bank in Japan is its postal bank. It’s do-able and would be a genuine public service for the many unbanked and under-banked people in our Country.

  3. Anonymous

     /  April 28, 2015

    This is just one more thing that the PO will screw up…

  4. Jonn

     /  April 29, 2015

    I think a return to savings accounts at the PO would be good for the public. That should also come with ATM access for off-hour transactions. I’m not sure lending would be a good way to go though. If USPS charges low fees for loans and we have another pullback in the economy, there could be a high percent of people who default on those loans. If USPS has financial issues now, wait till the economy tanks. That could get very bad.

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