POSB Bank

POSB Bank is a Singaporean consumer banking brand with roots in the Post Office Savings Bank, established on 1 January 1877 in the Straits Settlements. It was created to make basic savings facilities available to people who were not well served by commercial banks, particularly lower-income residents. The original institution was administered through the postal system and was headquartered at the General Post Office in Raffles Place. Its mandate and institutional form changed as Singapore's political and economic circumstances developed, but its broad social purpose—encouraging household savings and providing accessible banking—remained central to its identity. POSB expanded considerably during the twentieth century. Account numbers and deposits grew before and after the Second World War, although the bank experienced a period of decline in the late 1950s and early 1960s. After Singapore's independence, the government used the bank as an instrument for promoting domestic savings and supporting national development. Reforms recommended by a savings bank committee included higher withdrawal limits, longer operating hours, tax treatment intended to encourage saving, and the acceptance of non-Romanised signatures. School savings competitions and other educational initiatives helped introduce children to formal banking. These measures contributed to a substantial revival in deposits and account openings during the late 1960s. The institution became a statutory board under the Post Office Savings Bank of Singapore Act from 1 January 1972. It was transferred to the Ministry of Finance in 1974, and related lending capabilities were developed to support housing ownership and other household needs. During the 1970s and 1980s, POSB reached major scale milestones, introduced current accounts and card-based services, opened its first automated teller machine, and experimented with ATM-only branches. Its nationwide physical presence and focus on Singapore's suburban heartland reinforced its reputation as a practical, accessible bank. The brand also developed youth-oriented savings programmes, including a school scheme associated with a squirrel mascot named Smiley. In March 1990, the institution was renamed POSBank. The Singapore Ministry of Finance announced its acquisition by DBS Bank in July 1998, and the transaction was completed on 16 November 1998 for S$1.6 billion. POSB ceased to operate as a statutory board and became part of DBS. The acquisition reflected the government's objective of creating larger and stronger local banking groups able to compete internationally, while combining POSB's broad retail reach with DBS's commercial banking capabilities. POSB continued to be presented as the accessible, value-oriented consumer banking brand within the DBS group rather than being eliminated as a separate customer-facing identity. Today, POSB provides consumer banking services in Singapore, including deposit accounts, payment cards, personal borrowing, home-related finance, wealth and investment services, and digital banking. It is associated with a large branch and ATM network, especially in residential neighbourhoods, and customers of POSB and DBS can use many shared facilities. The brand describes its service philosophy through the idea of being 'neighbours first, bankers second' and is commonly known as the 'People's Bank'. POSB is not a separately listed company; its activities form part of DBS Bank and DBS Group. Public reference material describes it as serving more than four million customers, although current customer totals and other operating metrics should be checked against the latest DBS disclosures before being used as dated financial or performance claims.

POSB began on 1 January 1877 as the Post Office Savings Bank in the Straits Settlements. It was established by the colonial administration to provide a formal savings channel for people with limited access to commercial banking. The bank operated within the Postal Services Department, under the Postmaster General, with policy overseen by trustees appointed by the Governor of the Straits Settlements. Its early headquarters were in the General Post Office Building at Raffles Place. The institution expanded significantly before the Second World War. Between 1877 and 1940, the number of accounts increased from 211 to 57,000, while deposits rose from 19,862 to 14.3 million Straits dollars. After the war and the dissolution of the Straits Settlements, the 1948 Savings Bank Ordinance reorganised the institution. In 1949, the Singapore and Malayan operations were separated, with their assets and liabilities divided between the two jurisdictions. The Malayan successor eventually became Bank Simpanan Nasional in 1974. POSB experienced a period of contraction from 1957 to 1966, when deposits fell from their 1955 peak to M$37.4 million. Following Singapore's independence in 1965, the government sought to use the savings bank to mobilise domestic savings for national development. A savings bank committee recommended operational and product changes, including higher withdrawal limits, longer hours, tax treatment favourable to savings interest, and acceptance of non-Romanised signatures. School savings competitions and related programmes brought the bank to a younger audience. From 1966 to 1969, account openings and deposits grew sharply. The bank became a statutory board under the Ministry of Communications from 1 January 1972 following the Post Office Savings Bank of Singapore Act. It moved to the Ministry of Finance in 1974, when Credit POSB Pte Ltd was established to offer lending related to Housing and Development Board home ownership. By 1976, POSB had one million depositors and deposits above S$1 billion. The following decade brought the Passcard, the Principal Branch, the first Cash-On-Line ATM, ATM-focused branches, a new headquarters at Bras Basah Road, current accounts, and additional savings education initiatives. The school programme relaunched in 1983 used a squirrel mascot called Smiley. Deposits exceeded S$10 billion by 1986. In March 1990, the Post Office Savings Bank adopted the name POSBank. The Ministry of Finance announced DBS's acquisition in July 1998, and the transaction closed on 16 November of that year for S$1.6 billion. The acquisition ended POSBank's separate statutory-board status but preserved its retail brand. DBS's stated strategic rationale was to combine POSBank's low-cost, extensive consumer network with the broader capabilities and scale of a full-service commercial bank. Basic savings products were intended to remain affordable, including continued exemptions or concessions for children and full-time students under 21 where applicable. As part of DBS, POSB has continued to serve Singapore's consumer market. Its branch, ATM, cash-deposit, and digital channels are integrated to a substantial degree with DBS systems, allowing customers of both brands to use shared facilities. POSB remains strongly associated with residential communities, everyday payments, deposits, personal finance, and the social identity of a people's bank.

• 1998

  Acquired by DBS Bank

  [1]POSB Banken.wikipedia.org

  DBS completes the acquisition of POSBank on 16 November, bringing the institution into the DBS group.

• 1990

  Renamed POSBank

  [1]POSB Banken.wikipedia.org

  The Post Office Savings Bank adopts the shorter POSBank name.

• 1986

  Deposits exceed S$10 billion

  [1]POSB Banken.wikipedia.org

  The bank's deposits pass the S$10 billion threshold.

• 1984

  Current accounts introduced

  [1]POSB Banken.wikipedia.org

  POSB adds current-account facilities to its growing retail banking range.

• 1983

  New headquarters and school savings relaunch

  [1]POSB Banken.wikipedia.org

  The bank moves to POSB Bank Centre on Bras Basah Road and relaunches a primary-school savings programme featuring the Smiley squirrel mascot.

• 1981

  First Cash-On-Line ATM opens

  [1]POSB Banken.wikipedia.org

  POSB opens its first Cash-On-Line ATM at the Newton branch.

• 1976

  One million depositors

  [1]POSB Banken.wikipedia.org

  The bank reaches one million depositors and deposits surpass S$1 billion.

• 1974

  Transfer to the Ministry of Finance

  [1]POSB Banken.wikipedia.org

  POSB becomes part of the Ministry of Finance, while Credit POSB Pte Ltd is created for tailored housing-related lending.

• 1972

  POSB becomes a statutory board

  [1]POSB Banken.wikipedia.org

  The bank ceases to be a postal-service branch and begins operating under the Post Office Savings Bank of Singapore Act.

• 1966

  Savings-bank revival begins

  [1]POSB Banken.wikipedia.org

  Government-backed reforms promote household and school savings, helping reverse the bank's earlier decline.

• 1949

  Singapore and Malayan operations are separated

  [1]POSB Banken.wikipedia.org

  Following post-war legislative changes, the Singapore and Malayan savings-bank operations divide their assets and liabilities.

• 1877

  Post Office Savings Bank is established

  [1]POSB Banken.wikipedia.org

  The Post Office Savings Bank begins operating on 1 January within the Postal Services Department of the Straits Settlements.

A trusted, accessible, mass-market Singaporean retail banking brand focused on household savings, neighbourhood service, affordability, and broad financial inclusion within the DBS group.

• Savings account

  POSB Everyday Savings Account

  A consumer savings account associated with POSB's everyday banking proposition. It represents the brand's traditional focus on accessible deposits and routine household banking. Current eligibility, interest rates, fees, and benefits are product terms that may change and should be checked on the official POSB website.

• Personal credit

  POSB Cashline

  A revolving personal credit facility offered under the POSB brand for eligible customers. It extends the bank's retail finance range beyond deposits into flexible borrowing. Pricing, limits, eligibility, and availability are subject to current DBS/POSB terms.

• Payment and access card · 1980

  POSB Passcard

  Introduced in 1980, the Passcard was an early card-based service in POSB's transition toward more automated and convenient retail banking. It formed part of the bank's broader move from traditional counter service toward electronic access.

• ATM and self-service banking · 1981

  POSB Cash-On-Line ATM services

  POSB's Cash-On-Line network brought automated teller services to its branch network, beginning with the first installation at Newton in 1981. The programme supported faster access to cash and helped establish the self-service infrastructure later shared with DBS customers.

• Youth savings programme · 1969

  POSB school savings programme

  A savings initiative aimed at primary-school students, relaunched in the early 1980s with the Smiley squirrel mascot. It promoted thrift and familiarised children with formal savings accounts, extending POSB's community and financial-education role.

• 1983Smiley school savings relaunch

  Singapore

  POSB relaunched a school-focused savings scheme and used a squirrel mascot named Smiley to make thrift and account ownership more recognisable to primary-school children.

  Outcome. The initiative reinforced POSB's youth, community, and financial-literacy positioning.

  Source
• 1966School savings competitions

  Singapore

  POSB organised savings competitions among public and government-aided schools as part of a wider national effort to encourage domestic saving and introduce students to banking.

  Outcome. The programme contributed to increased account openings and deposits during the late 1960s.

  Source
• Neighbours first, bankers second

  Singapore

  POSB's brand platform presents the bank as a familiar neighbourhood institution whose relationship with customers is grounded in community proximity and practical everyday service.

  Outcome. The platform supports POSB's continuing identity as Singapore's people's bank.

  Source

• 1998

  DBS acquisition of POSBankM&A

  Background

  The government wanted local banks to consolidate and build the scale needed to compete internationally, while POSBank needed access to broader commercial banking capabilities.

  Action taken

  DBS acquired POSBank for S$1.6 billion, completing the transaction on 16 November 1998.

  Aftermath

  POSBank ceased to be a statutory board and continued as DBS's consumer-facing POSB brand, with shared branches, ATMs, and cash-deposit infrastructure.

  Acquisition consideration. S$1.6 billion (Transaction completed 16 November 1998)

  Source

• 1972

  Create a statutory savings bankStrategy

  Background

  The government sought a more distinct institutional framework for the savings bank after it had operated within the postal administration.

  Action taken

  The Post Office Savings Bank of Singapore Act took effect and POSB became a statutory board under the Ministry of Communications.

  Aftermath

  POSB operated as a separate public institution before later moving to the Ministry of Finance and eventually joining DBS.

  Source

• 1966

  Promote domestic savings through POSBStrategy

  Background

  After Singapore's independence, the government sought to mobilise household savings as a non-inflationary source of funds for infrastructure and national development.

  Action taken

  The bank raised withdrawal limits, extended operating hours, adjusted the treatment of savings interest, accepted non-Romanised signatures, and expanded school savings activities.

  Aftermath

  Account openings and deposits increased substantially between 1966 and 1969.

  Source

1. 1POSB Banken.wikipedia.org
2. 2POSB official websiteposb.com.sg
3. 3DBS Group official websitedbs.com