Are all Building Societies independent ?

Plutus

Martin has very kindly provided a list of banks which count as single financial institutions as far as FSCS compensation is concerned, but what about building societies ? Are they all single or are some joined with others? This could have implications if you were to save more than £35k with 2 societies thinking they were separate, if they were to go bust that is.

Oblivion

Let's start with the difference between a bank and a building society.

A bank has 'external' shareholders who benefit from any profits made by the bank. Several different banks may be part of a holding company, hence Martin's chart of who owns who.

A true Building Society, on the other hand, is a Mutual organisation owned by its members who may share any profits made. A true Mutual Building Society stands on its own and is not owned by anybody else, just its members. That is why there is no similar chart of ownership for true mutuals.

The confusion created in the public's mind as to what is a bank or building society has come about because of the many de-mutualisations that have taken place in past years e.g Bradford & Bingley, once a mutual building society, now a bank.

So, the answer to your question is ... make sure you pick a true mutual building society and its cover under the FSA/FSCS guarantee will not be shared with any other institution.

Dave.