Postal Banking Act

The Postal Banking Act would authorize the U.S. Postal Service to offer basic financial services directly to the public, including small-dollar loans (up to $500 per loan, $1,000 annually), checking/savings accounts (capped at $20,000 or 25% of median FDIC account balances), debit cards, check-cashing, and money remittance. It sets strict limits: loan interest rates cannot exceed 101% of the Treasury rate, savings rates must be at least 100% of the FDIC’s national rate, and the Postal Service must provide these services exclusively without private bank partnerships. The bill explicitly prohibits the Postal Service from obtaining a bank charter or becoming an insured depository institution, while requiring annual GAO reports on program demographics and usage. The goal is to provide affordable alternatives for unbanked or underbanked individuals who currently rely on costly services like payday loans or check-cashing.