Freedmen's Savings Bank Opens for Black Depositors

The Freedman's Savings and Trust Company was chartered by Congress on March 3, 1865 to encourage thrift among freedpeople. By 1872 it had 34 branches and $3.7 million in deposits from over 70,000 Black depositors. Mismanagement and fraud led to collapse in 1874, wiping out the savings of thousands of Black families and deepening distrust of financial institutions.