Savings Bank

Overview of Savings Bank

A savings bank is a type of a monetary organization. The main aim behind the functioning of a savings bank is to allow people to open savings deposits in their banks. However, the savings banks also provide other services.

Savings Banks in Europe

The first savings banks of Europe were incorporated near about the eighteenth or nineteenth century. The main motive of the first savings banks in Europe was to cater to all the classes of people and furnish them with savings products that could be availed pretty easily.

The causes of the formation of savings banks in Europe were different for each country. There were some countries where the members of the common public made the effort to establish this bank. In some other countries a few individuals who had a sense of social responsibility made the effort to establish the bank.

At present the savings banks of Europe are offering the following products:

• Retail Banking
• Credits
• Payments
• Insurance Plans
• Savings Products

The savings banks in Europe provide their services to both individual and institutional clients.

Savings Banks in New Zealand

Since 1997 there have been no savings banks in New Zealand. There are now registered banks in place of the savings banks.

Savings Banks in the United Kingdom and the United States of America

The savings banks in the United Kingdom are called the Trustee Savings Banks. In the United States of America the savings banks are known as Mutual Savings Bank and Savings and Loan Association.

Difference between Commercial Banks and Savings Banks

The main point of difference between the commercial banks and the savings banks is the diverse and decentralized system of distribution of the savings banks. As a result of their superb network the savings banks are able to serve both the local and global clients.