savings bank, financial institution that gathers savings, paying interest or dividends to savers. It channels the savings of individuals who wish to consume less than their incomes to borrowers who wish to spend more. This function is served by the savings deposit departments of commercial banks, mutual savings banks or trustee savings banks (banks without capital stock whose earnings accrue solely to the savers), savings and loan associations, credit unions, postal savings systems, and municipal savings banks. Except for the commercial banks, these institutions do not accept demand deposits. Postal savings systems and many other European savings institutions enjoy a government guarantee; savings are invested mainly in government securities and other securities guaranteed by the government.
Savings banks frequently originated as part of philanthropic efforts to encourage saving among people of modest means. The earliest municipal savings banks developed out of the municipal pawnshops of Italy. Local savings banks were established in the Netherlands through the efforts of a philanthropic society that was founded in 1783, the first bank opening there in 1817. During the same time, private savings banks were developing in Germany, the first being founded in Hamburg in 1778.
The first British savings bank was founded in 1810 as a Savings and Friendly Society by a pastor of a poor parish; it proved to be the forerunner of the trustee savings bank. The origin of savings banking in the United States was similar; the first banks were nonprofit institutions founded in the early 1800s for charitable purposes. With the rise of other institutions performing the same function, mutual savings banks remained concentrated in the northeastern United States.
This article was most recently revised and updated by Melissa Albert.
FAQs
Only 15 % of our revenue comes from Britannica content. The other 85% comes from learning and instructional materials we sell to the elementary and high school markets and consumer space. We have been profitable for the last eight years.
What are four types of money? ›
Different 4 types of money
- Fiat money – the notes and coins backed by a government.
- Commodity money – a good that has an agreed value.
- Fiduciary money – money that takes its value from a trust or promise of payment.
- Commercial bank money – credit and loans used in the banking system.
There are more than five stages of money's evolution. Still, five notable stages include: commodity money (i.e., grains, livestock), metallic money (i.e., coins), paper money, credit and plastic forms of currency, and digital money.
Who made the first money? ›
The first metal coins date back to the 7th century BCE in Lydia (modern Turkey) and China. In China, metal coins were made of bronze and shaped like farming tools. In Lydia, coins were made of an alloy of gold and silver called electrum. Lydian staters were the first coins to be officially issued by a government body.
How much does Britannica pay? ›
The average Encyclopædia Britannica hourly pay ranges from approximately $20 per hour (estimate) for a Front Desk Receptionist/Shipping and Receiving Clerk to $54 per hour (estimate) for a User Experience Designer. Encyclopædia Britannica employees rate the overall compensation and benefits package 2.6/5 stars.
Can you trust Britannica? ›
The articles in Britannica are written by expert authors who are both identifiable and credible. Many articles provide references to books and other sources about the topic covered.
What is the future of money? ›
Q: What is the future of money? The future of money is expected to be heavily influenced by technology. Predictions include the rise of cashless societies, the growth of cryptocurrencies, the continued adoption of digital currencies, and the potential offering of a Central Bank Digital Currency (CBDC) by governments.
What is paper cash? ›
What Is Paper Money? Paper money is a country's official, paper currency that is circulated for the transactions involved in acquiring goods and services. The printing of paper money is typically regulated by a country's central bank or treasury in order to keep the flow of funds in line with monetary policy.
How did money evolve? ›
People bartered before the world began using money. The world's oldest known coin minting site was located in China, which began striking spade coins sometime around 640 BCE. Since then, the world adopted banknotes and moved into digital forms of payment, including virtual currencies.
Is writing on money illegal? ›
US dollar notes are legal tender, even if someone writes on it or stamps a message on it. It's good, as long as you don't cut off too much of it, or tear it in pieces. Neither action is a crime... you can either destroy or deface US currency, but if it's whole and recognizable, it's good.
Before the creation of money, exchange took place in the form of barter, where people traded to get the goods and services they wanted. Two people, each having something the other wanted, would agree to trade one another. In economics, we call this a double coincidence of wants.
What is the oldest currency still in use? ›
The British pound, officially known as the pound sterling, is the oldest currency still in use today and has a history that spans over 1,200 years.
Is the Encyclopedia Britannica for profit? ›
Britannica's products have over 7 billion page views annually and are used by more than 150 million students, the website shows. Chief Executive Officer Jorge Cauz said in an interview in September 2022 the company would have revenue that year approaching $100 million.
Why does Britannica cost money? ›
Britannica's commitment to rigor, research, fact-checking, and editing is the prevailing reason we remain the pivotal place of knowledge. Honoring this commitment is time-consuming, expensive work. How do I donate to Encyclopaedia Britannica?
Where does Britannica get their sources? ›
Britannica commissions work from experts, including leading thinkers in academia and journalism. Notable contributions have come from Nobel laureates and world leaders.
Is Britannica royalty free? ›
By sending UGC, you automatically grant to Britannica, a royalty-free, perpetual, irrevocable, non-exclusive license to use, reproduce, modify, publish, edit, translate, distribute, perform, and display it alone or as part of other works in any form, media, or technology whether now known or hereafter developed, and to ...
