What is a Mutual Savings Bank?

There are many different kinds of financial institutions in the United States and across the globe. Most of us just deal with our local bank, and that’s about it. So the result is that while we may have heard about different kinds of financial institutions, we really don’t know that much about them. After all, we’re so busy dealing with our own lives, there’s no need to spend precious time and energy on things that have no bearing on us. Still, there might be hidden opportunities out there, and one of those may be a mutual savings bank.


Mutual savings banks are chartered or incorporated by state and federal governments to serve as safe places for people to put their money and watch their savings grow. They grow because the mutual savings bank invests the money into loans, stocks, bonds, mortgages, and other kinds of securities. The working philosophy of all mutual savings banks is to make the wisest and most prudent investments possible. In fact, they were initially created in the early 1800s as a way for rich philanthropists to “teach” the poor and working classes how to save their money and invest it cautiously, and thereby achieve some financial security.

One important distinction between commercial banks and mutual savings banks is that mutual savings banks do not have stockholders. All net profits from the bank go to the depositors, in direct relation to the amount of actual transactions a customer performs. Historically, most mutual savings banks are located in the Northeastern states.

If you would like to find out more about mutual savings banks, stop by one if there’s one in your area. If not, consult with your bank representative or trusted financial advisor and find out how a mutual savings bank might be the right place for you to put your money. Given the uncertain economic times, it’s worth remembering that the prudent behavior of mutual savings banks allowed them to survive the Great Depression.