ZIMSEC O Level Commerce Notes: Money and Banking: POSB Bank.
Post Office Savings Banks
- People’s Own Savings Bank.
- It accept deposits from individuals and companies.
- It operates savings accounts which earn tax free interest.
- It operates stop order facilities for clients.
- It lends money to large organisations for example Discount Houses.
- It invests money into Treasury Bills and municipal stocks.
- It issues cheques upon request.
- It provides ATMs (Automated Teller Machines).
- It provides money orders and postal orders.
- A means of payment suitable for paying large amounts.
- The sender fills in ink the amount to be sent.
- He/she states the name of the payee.
- The sender is given a certificate as a proof of postage.
- Money is paid at the sender’s post office.
- Money is transferred to the payee’s nearest Post Office for payment.
- The payee is paid at his/her local Post Office upon his/her identity being verified.
- They can be crossed for security purposes.
- They are a safe way of sending Money.
- They are valid for 12 months from the date of issue.
- They are suitable for sending small amounts of money through the Post Office.
- These documents are issued in lieu of cash.
- They are printed in fixed denominations.
- The sender buys the denomination equivalent to the money to be sent.
- The sender then fills in the payee’s name and posts the order to him/her.
- Upon receiving the Postal Order, the payee takes the postal order to the named Post Office and cashes it by signing.
- If it is crossed, the payee will have to deposit it into a bank account.
To learn more about other financial institutions go to this page.
To access more topics go to the Commerce Notes page.