Grace's Guide

British Industrial History

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Trustee Savings Bank

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1810 Trustee Savings Banks (TSBs) were local institutions that were largely independent of one another. They were established "for the advantage of the labouring classes and the lower orders of society". Their aim was to encourage "habits of industry, economy and sobriety among the poor and labouring population." The first were probably in Scotland, many others soon following

By 1817 there were also more than 80 savings banks in England and Wales

Expansion of the trustee savings bank movement ground to a halt in the second half of the 19th century.

1861 the Post Office Savings Bank Act was passed. Within a year, some 2,500 Post Office savings banks had been established. Many were in direct competition with the existing TSBs; within ten years, more than 200 of these had been forced to close.

1886 the movement was rocked by a major fraud - the actuary at Cardiff Savings Bank was found to have embezzled £30,000. This amounted to 15 percent of total deposits. The Bank’s trustees handled the investigation poorly, and enraged depositors by refusing to repay the money in full. The crisis escalated, and savings banks across Britain came under intense scrutiny.

1887 As a result the first step was taken towards unity of the TSBs, with the establishment of the Trustee Savings Bank Association. The Association had two aims: to protect the interests of depositors, and to increase co-operation among savings banks.

1947 a Mutual Assistance Scheme was established that allowed the richer banks to lend money to poorer ones wanting to expand. Funds were also lent to set up new banks. Fifty-nine new offices were opened as a result.

1970 As a result of consolidation of the TSBs, the number of savings banks had been reduced to 73.

1976 Following an Act of Parliament, the remaining 73 TSBs merged into 16 regional institutions. This paved the way for the Trustee Savings Bank to be floated on the Stock Exchange 10 years later.

1986 Became a fully-fledged plc.

1987 A network of estate agencies was set up. Acquired Hill Samuel Bank and Target Life.

1995 Merged with Lloyds Bank to form Lloyds TSB Group.

See Also

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Sources of Information

  • Lloyds history [1]