[3] The Savings Office was created by the United Farmers of Ontario government of Premier Ernest C. Drury to provide loans to farmers and other small borrowers who traditionally had limited access to credit, as well as to offer savings accounts paying interest on small deposits, something Canadian chartered banks at the time did not do.
POSO's authority to make loans was withdrawn by Premier Howard Ferguson's Conservative government that took office in 1923, and the institution's operations were effectively reduced to that of a government-run savings bank, offering savings, demand-deposit and term-deposit accounts at interest rates slightly higher than those available from commercial banks.
At the time of its closure, POSO had twenty-eight branches serving about 50,000 customers, approximately 100,000 accounts with deposits totalling about $CAD2.8B, and was responsible for coordinating the sale and distribution of Ontario Savings Bonds.
The union noted that POSO turned an annual profit of about $10 million,[6] and that, as POSO's deposits went to Ontario's consolidated revenue fund, from which they could be lent to the government at rates below those available from private lenders,[7] the government would be increasing its borrowing costs at a time when its stated objective was eliminating the province's budget deficit.
An unsuccessful petition campaign was mounted to attempt to convince the government to abandon its plans for the sale, but the assets were sold to the Desjardins Group on April 1, 2003.