Savings banks in Bulgaria were created to encourage people to save money safely and regularly. The establishment of post office savings banks was made possible by a law passed in 1885. This law was later replaced by a new one in 1896, which improved the organization and management of the system. From the beginning, these savings banks were closely connected to the State, and the Bulgarian Government acted as the guarantor, meaning that depositors’ money was protected by the government itself.
Rules for Deposits
The savings banks accepted deposits starting from as little as 1 franc, which made them accessible even to people with very small incomes. The maximum amount that an individual could deposit was 2,000 francs, which was the highest sum allowed for ordinary depositors. However, an important exception was made for charitable organizations and friendly societies. These institutions were permitted to deposit amounts of up to 5,000 francs, recognizing their special social role.
Deposits could be made either in the name of the person depositing the money or in the name of another person, most often a minor. This allowed parents and guardians to save money for children and young people Tours Bulgaria.
Savings Books and Easy Withdrawals
Each depositor received a savings book free of charge. This book recorded all deposits using special stamps, which were attached to the pages and initialed by a responsible official. The savings book served as official proof of ownership and balance.
One of the main advantages of the system was its convenience. With this savings book, a depositor could go to any post office in the Principality of Bulgaria to withdraw money. The post office was required to pay the requested amount and record the transaction directly in the book. This made the savings banks very practical, especially for people living far from large towns.
Management of Savings Bank Funds
All funds deposited in the savings banks were transferred by post offices or State comptrollers to the Bulgarian National Bank. The National Bank paid an annual interest of 4.5 percent on these funds. Of this amount, 4 percent was paid to the depositors as interest on their savings. The remaining 0.5 percent was kept to cover the administrative costs of running the savings banks.
Importance of the Savings Banks
These savings banks played an important role in promoting financial security and thrift among the population. By offering safety, government support, and easy access, they helped many people learn the habit of saving and contributed to the stability of the national financial system.