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Inside the Vault
Bringing Overlooked and Lesser-Known History into Focus
Blake Williams
December 17, 2024
December 17th
Inside the Vault
1816
The object of a Savings Bank or Provident Institution, is simply to provide a place where the poor may deposit their small savings, and be allowed to receive interest, with liberty also to withdraw the whole or any part of their deposit whenever they may desire it. Such institutions have been recently established in Great Britain, and especially in Scotland, with the happiest effect. Within a few weeks they have been introduced into this [country], and will soon be in operation in New York, Philadelphia, and Boston. These institutions are now managed in the most simple manner, and at an expense absolutely magnificent.
Quoted in the newspaper on the day of its inception, The Provident Institution for Savings holds the distinction of being the first chartered savings bank in the United States. It was founded in Boston by James Savage and other prominent local citizens, with support from John Cheverus, Boston’s first Bishop. The bank was established to help working-class individuals save part of their earnings for the future. At a time when there were no formal retirement systems, this was a newfound solution to provide financial security for people as they aged.
The Provident Institution for Savings emerged during a period when savings banks were being established around the world. The Ruthwell Savings Bank in Scotland, founded in 1810, is widely regarded as the first of its kind. Today, savings banks go far beyond serving working-class individuals as they play an essential role in the global economy. Savings accounts allow people across all income levels to manage their finances, prepare for unexpected expenses, and build a more secure future.