#Advantages of the postal savings plan.# As compared with corporate savings banks the postal savings system has certain advantages.
(a) It protects the small depositors from the danger of dishonest private bankers who have preyed upon the immigrants in the larger cities.

To foreigners, accustomed to the postal savings plan in their home countries, it is especially useful.
(b) It gives to every depositor the greatest safety possible, as "the faith of the United States is solemnly pledged" for the repayment of depositors.
(c) It brings a savings institution to many a small town and rural place formerly entirely lacking in facilities for small depositors.
The benefit of this has not immediately appeared to be great, but may in time prove to be.
(d) It pays interest from the first of the month following the date of deposit whereas the usual practice of savings and commercial banks is to pay only from the beginning of the quarter year or half year.
(e) It provides for the exchange of deposits for bonds bearing a higher rate of interest--a unique feature greatly simplifying for the small saver the process of buying bonds for more lasting investment.
In some respects, however, the postal savings system falls short of the advantages of the regular savings banks.

These usually accept for deposit as small an amount as ten cents; they pay interest either quarterly or semi-annually; they pay on the average (at present) almost double the rate of interest, and the interest is credited to the depositor's account at stated intervals and automatically compounded.

The postal savings system, as the law now stands, may be looked upon, therefore, as supplementing the regular savings banks rather than competing with them.
Sec.9.

#Collection of savings and education in thrift.# Small savings have been encouraged in many places by penny provident funds, dime savings banks, and school savings funds, which have been conducted at public schools, social settlements, and factories, by school officers and by charitable and educational societies acting through canvassers.
These plans all call for much personal effort and cost, which must be provided by volunteer services and private gifts.