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POSB – The Need for a People’s Bank

Do you know ……

On 8 July 1966, Post Office Savings Bank (POSB) officially became an independent savings bank in Singapore to provide a means for the deposit of savings, encourage thrift and mobilise domestic resources for public development. Dr Goh saw the possibility of tapping the national savings for projects leading to national development and called for initiatives to raise the amount of deposits in the POSB. The POSB was an important financial resource.

In 1968, a Savings Bank Committee was formed to encourage Singaporeans to make deposits with 4% interest that was exempt from income tax. The habit of saving pocket money was actively promoted among school children. The domestic savings were then channeled to finance government projects, and to assist in Singapore’s infrastructure development. POSB became an important financial resource as deposits increased from $91 million in 1971 to $996 million in 1976. In 1972, the POSB was made a statutory board within the Ministry of Communications.

Source NAS

Source: Your National
Savings Bank

Source: Your National Savings Bank

Source: POSB
Collection, NAS

1 Consultation Research Bureau, The Post Office Savings Bank of Singapore: Your National Savings Bank – 100 Years, (Singapore: The Post Office Savings Bank, 1977), p. 20.