Bank vs. Building Society whats the main difference?

TzarJay

I was looking at the Norwich & Peterborough Current Account, and it looks pretty good, especially the free debit card usage abroad. But what is the main factors that separate a Bank from a Building Society ?

Is it really just that BS's dont have shareholders or is there a lot more to it than that ?

Thanks.

fiesta04

That's it.

If it gives you what you want go for it

F4

thenudeone

A bank has shareholders and directors whose objective is to maximise their returns.

A building society (or other mutual organisation) doesn't have shareholders, only members. All or nearly all of their funds come from individual savers (who are members), and IIRC at least 75% of a BS's lending must be secured on assets (usually mortgages on domestic property - the house owner is also a member), so they are arguably a lot more stable than a bank.

have a look at https://www.!!!!!!.uk

expatasia

thenudeone wrote: »

All or nearly all of their funds come from individual savers (who are members), and IIRC at least 75% of a BS's lending must be secured on assets (usually mortgages on domestic property

Does all this equally apply to offshore providers like Nationwide International?

CLAPTON

the important issue is that building societies provide the same poor level of service as banks and offer similar rates and ripoffs.

BugsyBrowne

CLAPTON wrote: »

the important issue is that building societies provide the same poor level of service as banks and offer similar rates and ripoffs.

Amen to that.

BASFORDLAD

CLAPTON wrote: »

the important issue is that building societies provide the same poor level of service as banks and offer similar rates and ripoffs.

Sorry i disagree with that

Which BS are you talking about?, do you mean the main big players or the smaller local ones?

Please do name them, ive had the best service from local small ones.