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Postal Service to Offer Low-Cost Banking and Small Loans.

This Act authorizes the U.S. Postal Service (USPS) to provide essential financial services, including low-cost checking and savings accounts, and small-dollar loans up to $500. The goal is to offer safe, affordable financial products, particularly to citizens who currently rely on expensive alternatives like payday lenders or check-cashing services. USPS must ensure competitive interest rates on savings and strict, low limits on loan costs.
Key points
USPS can offer small loans up to $500 (max $1,000 annually) with interest rates strictly capped at 101% of the Treasury 1-month rate.
Introduction of small checking and interest-bearing savings accounts (up to $20,000) with savings rates guaranteed to match or exceed the national FDIC rate.
Access to transactional services like debit cards, ATMs, check cashing, and money transfers, making basic banking accessible nationwide.
These services must be provided exclusively by the Postal Service, without private bank partnerships, to prioritize public interest and customer access.
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Additional Information
Print number: 118_S_5627
Sponsor: Sen. Gillibrand, Kirsten E. [D-NY]
Process start date: 2024-12-19
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Postal Banking Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_5627.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-12-19.

What are the main provisions?

Key points include:

  • USPS can offer small loans up to $500 (max $1,000 annually) with interest rates strictly capped at 101% of the Treasury 1-month rate.
  • Introduction of small checking and interest-bearing savings accounts (up to $20,000) with savings rates guaranteed to match or exceed the national FDIC rate.
  • Access to transactional services like debit cards, ATMs, check cashing, and money transfers, making basic banking accessible nationwide.
  • These services must be provided exclusively by the Postal Service, without private bank partnerships, to prioritize public interest and customer access.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Gillibrand, Kirsten E. [D-NY].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Economy