ABSTRACT
This chapter examines the development of the Post Office Savings Bank (POSB) from its beginnings in the mid-nineteenth century to an unparalleled position in Britain’s consumer society by the first half of the twentieth century. The Liberal Government created the POSB in 1861 in response to this void in the financial system. The POSB was both conservative and innovative. Although wary to tread into areas hitherto dominated by private sector banks, the POSB did contribute to some major developments in individual savings. During the 1930s, in an attempt to inspire the confidence of a sceptical public who mistrusted private banks, the POSB became a kind of hybrid institution – a ‘commercialized’ state department. The POSB revolutionized the way many citizens managed their savings, even if the overall development was slow. The public was becoming more accustomed to and dependent on its efficient postal and telegraph services, public telephones and banking facilities.
