What type of institution was originally set up to serve small savers overlooked by commercial banks?

Savings banks were originally established to cater to small savers who were often overlooked by traditional commercial banks. These institutions were designed to provide a safe place for individuals to deposit their money while earning interest, particularly targeting those with lower incomes who might not meet the requirements for opening accounts at commercial banks. Savings banks typically emphasize accessibility and community-focused services, ensuring that individuals have the opportunity to save and accumulate wealth. This accessibility often includes lower fees and less stringent requirements, making them an essential resource for many small savers.

While credit unions also serve similar purposes, they primarily function as member-owned financial cooperatives, which means they require membership eligibility related to specific criteria. Investment firms, on the other hand, focus on the buying and selling of securities and may not cater directly to small savers. Check-cashing services provide immediate access to cash but do not offer the same savings benefits as savings banks.