Portman Building Society - Demutilisation a reasonable possibility?

caro69

I've have had savings accounts with the Portman Building Society since the year dot . . . . . they used to offer the best rates on the high street - no more.

I have kept my Mini Cash ISA with them, currently paying 4.5% (not good I know) just in case they decide to demutulise. I've always felt it would be silly to miss-out as I've been a member for so long.

However, I realise my money could get a better rate elsewhere and they may never demutilise!

Does anyone know how much money you need to keep with a Building Society to secure your rights in the event of demutilisation? I know this may vary from case to case, but just a rough idea of how it has worked in the past.

Any views greatly appreciated.

A Happy New Year to you all.

YorkshireBoy

£100 in a 'share account', according to...

http://www.portman.co.uk/savings/questions.asp#member

Consider opening the necessary account, deposit the bare minimum (but keep an eye on the T&C's for 'membership'), and move your ISA to a better paying provider - in that order!

Ivrytwr3

My wife has £2k in a very very low interest account with the Nottingham Building Society. I'm p*ssed off with her for keeping the money in such a poor performing account, but she keeps harping on about when it will be taking over and she will get her windfall!!! (is that the correct term Demutilisation?)

Anyway, so taking the OPs question, would she be able to leave just £100 in her account to qualify for a windfall should a take over take place? Leaving her £1900 to save elsewhere?

Ta

People's_Will

I'd have thought demutualisation is unlikely in both cases, although Robert Sharpe, the Portman Chief Executive is recognised as very ambitious. The general view is that consolidation within the building society industry is much more likely, which may, or may not yield small, taxable, windfalls of up to £50.

Nottingham has all sorts of complicated rules for who qualifies for demutualisation windfalls. It depends when your wife joined, so don't do anything without checking it with the society.

If she joined before 1999 then she could open a regular saver paying a decent rate of interest and wait for it to reach £100 before closing the poor paying account with £2K.

cifpower

By applying to open a share account on or after 31st December
1999, I agree with the Society and the Charity (defined below) that
I will assign to the Charity the rights to any Relevant Conversion
Benefits


Hmmmmm, !!!!!!!

jonesMUFCforever

I think the Portman is too small to be sold on the open market but it could amalgamate with another society.
Not sure what would happen to your windfall in that scenario.