Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Steer · Captive demand

Mandatory investment of postal and small-savings deposits in government securities

What it is
Statutes requiring that deposits collected through state savings banks, post offices and small-savings schemes be handed to a government fund and invested only in government (or government-guaranteed) securities, often special non-marketable issues at administered rates.
Why it counts
Retail savings gathered through the post-office network are converted directly into state borrowing without any market test of the rate the government pays.

When it was in force

  • United Kingdom: 1971, historical; the rule may be older than the cited document; its end is not documented
  • India: 1999 → now, in force
  • Japan: 2001, historical; the rule may be older than the cited document

3 examples

  1. United Kingdom

    1971Historical

    The rule may be older than the cited document · Its end is not documented · As cited: 1971 (as enacted; re-enacting earlier Post Office Savings Bank law)

    Surplus ordinary deposits of the National Savings Bank had to be paid to the National Debt Commissioners, who could invest them only in Parliamentary (government) securities or securities guaranteed by Parliament.

    National Savings Bank Act 1971, ss. 17-18 (ordinary deposits paid to the National Debt Commissioners and invested in Parliamentary securities)Primary source
    “Sums to be invested under section 17 of this Act shall be invested— (a)in Parliamentary securities created or issued under the authority of an Act of Parliament”

    legislation.gov.uk (opens in a new tab)Checked: quote matched on the page by script

    United Kingdom today: index 44.4

  2. India

    1999 → nowIn force

    As cited: 1999-present (NSSF set up 1.4.1999; Rules of 2001)

    All small-savings collections (postal deposits, savings certificates, PPF and senior citizens' scheme) are credited to the NSSF in the Public Account, whose balance is invested in Central and State Government securities according to norms set by the Government of India.

    National Small Savings Fund (Custody and Investment) Rules, 2001, under Article 283(1) of the ConstitutionSecondary source
    “The balance in the Fund is invested in Central and State Government Securities. The investment pattern is as per norms decided from time to time by the Government of India.”

    ies.gov.in (opens in a new tab)Checked: quote matched on the page by script

    India today: index 60.6

  3. Japan

    2001Historical

    The rule may be older than the cited document · As cited: until the FILP reform (fiscal 2001 per the MOF reform page)

    Postal savings had to be deposited in full with the Finance Ministry's Trust Fund Bureau; the FILP reform abolished this deposit obligation and moved to market investment by the postal system.

    Trust Fund Bureau Fund Act (資金運用部資金法): full mandatory deposit of postal savings with the Ministry of Finance Trust Fund BureauPrimary source
    “郵便貯金・年金積立金の預託義務の廃止、市場における自主運用”

    mof.go.jp (opens in a new tab)Checked: quote confirmed on the page by a reviewing agent

    Japan today: index 64.9

Examples and their dates reviewed .

Further reading

12 more on captive demand