Building society changing to bank - shares?

skiddy2k

Just out for some opinions on this thought,

I was told that if i opened up a bank account in e.g. Nationwide (building society) that when and if it turns into a bank, they may issue free shares - like Halifax did when they changed to HBOS.

I can easily stick the £ into a savings account, but i was just curious to try this out

whats your views on this?
advisable?

MattB_4

You've probably missed the boat on most of these. Although I have seen various opinions on how robust agreements like Nationwide's charity assignment would be if challenged.

Take a look around and see who will still let you be a 'carpetbagger'. I reckon there will be quite a few takeovers and mergers in the building society sector in the coming years.

tom188

dont see any more demutualisations in the near future, but consolidation looks quite likely in the sector, and usually a payout will be involved with this. also charitable assignment clauses do not apply (though i question whether they ever would do in practice). the mutuals section of https://www.rpoints.com forums is devoted to this subject.

to be a member to qualify you need to have £100 in an account.

Personally I have accounts with 40 of the remaining societies.

skiddy2k

tom188,
what do you think is the hot number at the moment?

i can see that Bradford and Bingley has many recommendations on rpoints.

whats your view?

bristolleedsfan

skiddy2k wrote: »

tom188,
what do you think is the hot number at the moment?

i can see that Bradford and Bingley has many recommendations on rpoints.

whats your view?

bradford and bingley has already converted to plc status, ive personally held the free shares i received when they converted in hope that another plc/bank might take them over, as for building societies any names can be banded about without any real substance, think its fair to say that if someone holds 100.00 + in any building society as long as they are getting 5.25% gross ( or a little less) they really in a no lose situation, as for beliefs about who could get taken over next like poster said mutual forum on rpoints is worth a read

freebird65

Interesting idea ref the B&B shares there - I did a load of carpetbagging a few years ago and I've still got those shares too....maybe I won't sell them just yet.

Ref earning ca 5.25% on the £100 held in whatever account - my £100 in the Nationwide (been there since 1997) has gone up to a whopping £112 now so am getting nowhere near that. Do any of the qualifying accounts actually pay much?

bristolleedsfan

freebird65 wrote: »

Interesting idea ref the B&B shares there - I did a load of carpetbagging a few years ago and I've still got those shares too....maybe I won't sell them just yet.

Ref earning ca 5.25% on the £100 held in whatever account - my £100 in the Nationwide (been there since 1997) has gone up to a whopping £112 now so am getting nowhere near that. Do any of the qualifying accounts actually pay much?

"5.25% or bit less" i was thinking following impending rate rises, nationwides invest direct another once upon a time best buy is around 4.7% gross following this rate rise on 1.00+ ( i havent looked it up has been available for several years) if u have nationwide flexi account then nationwides e-saver is 5.55% gross from 1st june on 1.00+, as u mention since 1997 nationwides bonus saver ( monthly saver) while now closed to new investors on minimum 20.00+ monthly commitment will be paying 5.4% gross from 1st june

1 and 2 year bonds will pay u around 5.75% gross for your 100.00 at nationwide, if u just want to keep 100.00 stake in nationwide on a no lose basis appears good idea

always transfer funds across from existing account to new account or open new account with 100.00 and then close existing account after the new account is up and running with 100.00 in it to ensure theirs no break in 100.00 stakeholding rather than say right ill close this one and then now ill open a new account ( just to be on safe side)