PostBank

PostBank was the late-period trading identity of New Zealand’s government-owned postal savings bank. Its institutional history began in 1867, when the Post Office Savings Bank was created to encourage saving among ordinary New Zealanders. Rather than relying on a conventional network of dedicated bank branches, it conducted business through post offices distributed across towns and cities. This gave customers broad access to deposit and withdrawal services and made the bank an important part of everyday financial life, especially for people outside the largest urban centres. The bank’s original mission emphasized thrift and regular saving rather than the convenience-oriented services associated with commercial banks. For many years customers could deposit funds widely but faced restrictions on withdrawing them by cheque. Requests for cheque facilities were repeatedly resisted by successive postmasters-general, who regarded the postal savings system as institutionally distinct from a commercial bank. Cheques were eventually introduced in 1958, reflecting the bank’s gradual adaptation to changing customer expectations and the modernization of retail banking. Over its long operating history, the institution expanded beyond basic savings accounts. Its activities included school banking, notably the Squirrel savings accounts, and Bonus Bonds. These products helped extend the bank’s role from a deposit-taking utility into a broader mass-market savings institution. Its post-office distribution model also allowed banking services to be integrated with other public-facing postal services. A major structural change came through the Postal Services Act 1987, which reorganized the former New Zealand Post Office department into separate entities. The banking business was placed in Post Office Bank Limited and traded as PostBank, while New Zealand Post Limited became the postal-services company and Telecom Corporation of New Zealand Limited became the telecommunications company. PostBank acquired the assets of the former Post Office Savings Bank and represented the banking operation in its corporatized form. The PostBank brand had only a short independent life. In 1989, two years after its creation, PostBank was sold to Australia and New Zealand Banking Group, commonly known as ANZ. The business was subsequently integrated into ANZ, its branches were rebranded, and the PostBank identity disappeared by the late 1990s. The bank is therefore best understood as a historical New Zealand banking brand rather than a continuing financial institution. Its legacy is also relevant to the later development of Kiwibank, which initially operated as a wholly owned subsidiary of state-owned New Zealand Post and shared certain characteristics with the former postal banking model, including close links between banking services and the national postal network.

The Post Office Savings Bank was established in New Zealand in 1867 as a government postal savings system. Its purpose was to encourage ordinary people to build savings through a trusted public institution. The model used post offices as banking points, allowing customers to deposit and withdraw money at branches located throughout the country. This arrangement provided a relatively extensive retail network without requiring the bank to construct a separate estate of conventional banking premises. During its early and middle history, the institution defined itself primarily as a savings service rather than as a full commercial bank. The emphasis was on thrift and regular deposits. That distinction shaped the services available to customers. During the early twentieth century, customers increasingly sought the ability to withdraw money by cheque, but successive postmasters-general declined to introduce cheque facilities because they believed the postal savings bank should not be operated like a commercial bank. The resulting asymmetry made deposits convenient while making some forms of withdrawal more difficult. Cheques were finally introduced in 1958, marking an important modernization of the institution. The bank developed additional savings products over time. School banking, including the Squirrel accounts, encouraged children to establish regular saving habits. Bonus Bonds provided another widely recognized savings-related offering. These products supported the institution’s public-facing mission and helped maintain its relevance as consumer expectations and the wider banking system changed. The most significant institutional transition occurred in 1987. The Postal Services Act divided the former New Zealand Post Office, which had operated as a government department, into three successor organizations: Post Office Bank Limited, trading as PostBank; New Zealand Post Limited, responsible for postal services; and Telecom Corporation of New Zealand Limited, responsible for telecommunications. PostBank purchased the assets of the former Post Office Savings Bank and became the distinct banking business created by this reorganization. PostBank did not remain independent for long. In 1989, it was acquired by Australia and New Zealand Banking Group. The acquisition ended the bank’s existence as a separate government-owned institution and transferred its operations into a major Australian-New Zealand banking group. The PostBank name was progressively removed from branches and other customer-facing locations, with the rebranding process complete by the late 1990s. The institution is consequently treated as defunct, although many of its former services and distribution arrangements continued under ANZ. The postal banking model later provided a point of comparison for Kiwibank. Kiwibank initially operated as a wholly owned subsidiary of New Zealand Post and shared the broad idea that banking services could be delivered through a national postal network. Kiwibank and New Zealand Post later began reducing their reliance on co-located premises, including the development of stand-alone Kiwibank locations. PostBank’s historical importance therefore extends beyond its own short-lived brand period: it represents an earlier phase of state-linked, post-office-based retail banking in New Zealand.

• 1989

  Acquired by ANZ

  [1]Post Office Savings Bank (New Zealand)en.wikipedia.org

  Australia and New Zealand Banking Group acquired PostBank, ending its independent operation as a government-owned bank.

• 1987

  PostBank created through postal-sector restructuring

  [1]Post Office Savings Bank (New Zealand)en.wikipedia.org

  The Postal Services Act reorganized the former New Zealand Post Office and placed its banking assets in Post Office Bank Limited, which traded under the PostBank name.

• 1958

  Cheque facilities introduced

  [1]Post Office Savings Bank (New Zealand)en.wikipedia.org

  After decades in which cheque withdrawals were resisted, the bank introduced cheque services as its customer base sought more convenient access to deposits.

• 1867

  Post Office Savings Bank established

  [1]Post Office Savings Bank (New Zealand)en.wikipedia.org

  The New Zealand government established the Post Office Savings Bank to promote thrift and make saving accessible through post offices across the country.

• PostBank branding withdrawn

  [1]Post Office Savings Bank (New Zealand)en.wikipedia.org

  Following the ANZ acquisition, PostBank branches were progressively rebranded, and the PostBank identity disappeared by the late 1990s.

A publicly owned, nationwide postal savings institution focused on accessible retail banking, thrift, and regular saving. In its later PostBank form, it was the corporatized successor to the New Zealand Post Office Savings Bank before being absorbed into ANZ.

• Savings banking · 1867

  Post Office Savings Bank accounts

  The institution’s core offering was a nationwide deposit service operated through New Zealand post offices. Customers could deposit and withdraw funds at branches around the country, making the system particularly accessible to ordinary savers and communities without dedicated commercial-bank facilities.

• Transaction banking · 1958

  Cheque accounts

  Cheque facilities were added in 1958 after a long period in which the bank emphasized thrift and regular deposits over commercial-bank convenience. Their introduction represented an adjustment to changing customer needs and broadened the practical ways in which account holders could access their money.

• Youth savings

  Squirrel school banking accounts

  The Squirrel school-banking accounts were designed to encourage children to develop regular saving habits. They extended the postal savings system’s educational and social purpose by bringing basic banking into the school environment and connecting young savers with the national post-office network.

• Savings-linked investment product

  Bonus Bonds

  Bonus Bonds were among the notable savings-related products associated with the Post Office Savings Bank. They broadened the institution’s offer beyond ordinary deposit accounts and became part of the product history carried into the later PostBank period.

• 1989

  Sell PostBank to ANZM&A

  Background

  PostBank had been created as a separate entity only two years earlier, following the restructuring of the former New Zealand Post Office.

  Action taken

  The New Zealand government sold PostBank to Australia and New Zealand Banking Group.

  Aftermath

  PostBank ceased to operate as an independent government-owned bank. Its branches were progressively rebranded under ANZ, and the PostBank name was removed by the late 1990s.

  Source

• 1987

  Separate the postal banking business from the former government departmentStrategy

  Background

  The Postal Services Act divided the former New Zealand Post Office into separate postal, telecommunications, and banking organizations.

  Action taken

  The banking assets of the Post Office Savings Bank were transferred to Post Office Bank Limited, which operated under the PostBank trading name.

  Aftermath

  PostBank became a distinct corporatized banking business, but its independence lasted only until its sale to ANZ in 1989.

  Source

1. 1Post Office Savings Bank (New Zealand)en.wikipedia.org
2. 2Deutsche Bank and Commerzbank announce new round of job cutswsws.org
3. 3Deutsche Bank Introduces Negative Interest Rates For Retail Deposits Over 100,000 Euros! - Investment Watch Bloginvestmentwatchblog.com