What's the difference between a post office and bank?

The primary differences between a post office and a bank are rooted in their main objectives, services offered, and the nature of their operations.

Main Objectives

• Banks: The primary purpose of a bank is to provide financial services to its customers. This includes accepting deposits, offering loans and mortgages, facilitating transactions such as payments and withdrawals, and providing other financial products like debit and credit cards, overdraft facilities, and online banking services134.
• Post Offices: The main objective of a post office is to provide mailing services, including the processing and delivery of mail, letters, documents, and parcels. While traditionally focused on postal services, post offices have expanded to offer some financial services135.

Services Offered

• Banks: Banks offer a wide range of financial services, including current and savings accounts, loans, credit facilities, electronic fund transfers, and various investment products like fixed deposits and recurring deposits. They also provide convenience through online banking, mobile banking, and other digital platforms134.
• Post Offices: Post offices primarily offer mailing services, money orders, postal orders, and other related services. However, they have also begun to provide some banking services, such as opening savings accounts, fixed deposit schemes, and recurring deposit schemes, especially in rural and remote areas where banking facilities may be limited134.

Financial Services

• Banks: Banks are fully equipped to handle complex financial transactions, including loans, overdrafts, and various investment products. They offer a wide range of tenures for fixed deposits and often provide additional services like overdraft facilities and easy liquidation of deposits134.
• Post Offices: While post offices do offer some financial services, they are generally more limited. They provide fixed deposit schemes and recurring deposit schemes, often with higher interest rates compared to banks due to lower overhead expenses. However, they do not offer loan services or other advanced financial products134.

Accessibility and Security

• Banks: Banks offer ease of access through digital platforms, allowing for online investments and transactions. They provide a wide range of tenures for fixed deposits and additional services like online banking4.
• Post Offices: Post office fixed deposits are often preferred for their robust security and reliable returns, backed by government assurance. They may offer a more personalized touch with in-person investments but lack the convenience of extensive digital services4.

In summary, while banks are specialized institutions for comprehensive financial services, post offices are primarily mailing service providers that have expanded to include some basic financial services, particularly in areas where traditional banking is less accessible.