First Savings Account

About First Savings Account

The first savings bank was founded in Hamburg in 1778, designed to encourage thrift among working people. The concept spread across Germany and then to Britain. Savings banks were mutual institutions, owned by depositors. The first British savings bank opened in Ruthwell, Scotland, in 1810, founded by Henry Duncan. Duncan was called the father of savings banks. Post Office Savings Banks, established in Britain in 1861, brought savings accounts to every village. Savings banks democratized finance, allowing ordinary people to earn interest on small deposits. The concept evolved into credit unions, building societies, and modern online savings accounts. The idea that everyone should have access to safe interest bearing deposits transformed financial inclusion.