Carpetbagging

rich76_2

I have a number of mutual building society savings accounts (Brittania, Nationwide, Yorkshire Building Society etc) that I have kept open with the minimium amount in them for between 5 and 10 years in most cases, not because they offer the best interest but because i've been a member for so long and won't to keep up my continual membership and don't wish to miss out on any pay out if they go non-mutual (I realise this is a tad mercenary). Occasionally when they offer a competitive priveliged member product I have used it - eg my mortgage was with Brittania for a while but this occurs rarely. I'm beggining to think that the money i lose on interest every year together with the hassle of having so many accounts is really worth keeping them on when they may never change from being mutual anyway.
If anyone has any thoughts, advice , experience on that issue I'd be interested to hear it.
Many thanks

dwsjarcmcd

Rich,
A personal view is that there will be consoladation within this sector over the next few years (Portman & Newcastle have both taken over smaller Societies recently). There are many reasons for this view, cost of regulation, margin pressures, new accountancy rules etc. that will have an impact on them all with the exception of the Nationwide, which is big enough. On the assumption that we are talking about £100 each and therefore you are losing a couple of pounds each I would tend to hold them. There is a reasonavble chance some of the bigger ones will merge and/or take over smaller ones.

.......but only an opinion

Chadsman

IMHO the chances of *most* BSs demutualising are at best remote more likely nil. That said Kent Reliance has recently removed their charity clause which certainly raised a few eyebrows and Skipton have always been somewhat equivocal in their support of mutuality.

dwsjarcmcd

Chadsman wrote:

IMHO the chances of *most* BSs demutualising are at best remote more likely nil. That said Kent Reliance has recently removed their charity clause which certainly raised a few eyebrows and Skipton have always been somewhat equivocal in their support of mutuality.

Chadsman,
I agree but there would still be payouts on mergers and takeovers, which are more likely

Robert_Sterling

Merging is the new carpetbaggers paradise.
There are about 63 building societies at present.
There are three mergers in progress at present.
The "signaway to charity" does not come in to play with mergers.
The remaining building societies are poised to fall like a house of cards. They just need a little nudge.

Bernard_Coleslaw

Robert_Sterling wrote:

Merging is the new carpetbaggers paradise.
There are about 63 building societies at present.
There are three mergers in progress at present.
The "signaway to charity" does not come in to play with mergers.
The remaining building societies are poised to fall like a house of cards. They just need a little nudge.

I agree, however the larger BSs the OP has accounts with are likely to be doing the taking-over, rather than being subjects themselves. Windfalls typically only get paid to you in the event of a merger if you're with the smaller Society.

If you're after merger material, I think it's the Society's ranked 15th and below that are more likely in the short term.

Midas

[FONT=Verdana, Arial, Helvetica, sans-serif][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]Full list of local UK Building Societies[/FONT]

cheggers

I've most of the top 20 Building Societies, each year I try and move one of the crap paying accounts into an ISA with the building society.

Think mergers will lead to the next windfalls, you need to be looking for societies with a branch network, I dont think socieities with one branch are such a great target for takeovers. My tips is Leek Utd, has a branch network and could be a good one for Britannia to look at some point.

Other tips are:

Stroud & Swindon
Dunfermline
Principality