Jamz3k

As above really.

SteveScooby

iTrader: (2)

A bank is PLC and has shareholders

A building society is owned by its members, the people who have deposits there

chocolate_o_brian

iTrader: (22)

Ones full of waring bankers.
The others full of boring *******.

stibex

with a bulding society you dont get a card to use at cash machine just like a book were you pay money in out of

XRS

You're a little out of date there, they've had cards for well over 20 years to my certain knowledge.

SteveScooby is correct, though it looks like the historical mutual structure of the building societies could be about to change.

Trout

iTrader: (1)

Technically a Building Society can convert to a PLC - however all those that have done now do not exist as they have (mostly) been bought or nationalised!

fivetide

iTrader: (1)

Trout - not sure they can anymore. The 'carpetbagging' of the early 90's was stopped by legislation to make it harder. Sure those who made them convert just to get their shares are really proud of themselves now.

The first definition was about right. As a 'mutual' society, the idea is that a Building Society doesn't really make a profit, anything they do make is invested in the business or in offering lower mortgage rates/higher savings rates. In reality, it is a nightmare for them to compete since deregulation.

30 years ago getting a mortgage was a nightmare. Building societies only lent out what they had in savings but now, they compete with banks on the world markets so they've been struggling with the credit crunch like anyone else.

5t.