In spite of this postal banking services having an unintentional negative effect of the US economy, I believe that it is important to discuss the pros and cons of this banking system. I will be agreeing on how the banks initially felt threated by the inception of the postal banking services, how the Savings and Loans industry lost profits due to this banking …show more content…
There were three main goals of this system, the first one was to not compete with banks, second, it was created to help the small saver, and third it was deigned to make sure that the money did not lose its homegrown background. There was a limit on how much one could invest which was five hundred dollars, but in 1918 that limit went up to two thousand five hundred dollars. To avoid any animosity from the financial banking system there was a two percent rate of interest paid on deposits which was one and a half percent lower than what the big banks were paying out. In my opinion this was a pro and con of the system because the con would be that it initially would not let the postal service bank compete with the big corporations and it was a pro because the system allowed the small depositor to gain interest on their