de-mutualisation

H_AS

Hi
A few years ago i opened a couple of instant access branch accounts when many of the building societies were changing into banks.

A couple of these accounts still remain, one being the Chelsea (and cant think for the minute what the other one is).

My question is - is it worth keeping hold of these? of (for ease of use - and remembering where my money is!!! lol) shall i close andjust keep everything together and in easy reach?

Be good to hear from you

Many thanks
H:beer:

planteria

Chelsea Building Society was absorbed by Yorkshire Building Society.
whether Yorkshire, or any other Building Society, will demutualise is very difficult to say. I don't think the environment is right at the moment, but things could change.
I am a member of YBS and don't plan to close my account.

EarthBoy

planteria wrote: »

whether Yorkshire, or any other Building Society, will demutualise is very difficult to say. I don't think the environment is right at the moment, but things could change.

The likelihood of any building society demutualising in the current financial climate is so remote as to be unthinkable. It might happen in future when the economy picks up, but only when people have forgotten about the economy crisis of 2007-2008.

planteria

i agree, in that i don't see the likes of Yorkshire Building Society about to become a bank.

but other things happen, such as the former Kent Reliance Building Society morphing into OneSavingsBank:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/10813002/One-Savings-Bank-targets-IPO-valuation-of-up-to-600m.html

EarthBoy

planteria wrote: »

but other things happen, such as the former Kent Reliance Building Society morphing into OneSavingsBank:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/privateequity/10813002/One-Savings-Bank-targets-IPO-valuation-of-up-to-600m.html

Yes, members could be in line for windfalls amounting to the massive sum of £15 each.

http://www.telegraph.co.uk/finance/personalfinance/building-societies/10813631/Building-society-members-in-line-for-future-windfalls.html

It's not worth keeping money in a building society account which pays a pittance in the hope of gaining a future windfall if that windfall is itself just a pittance.

Glen_Clark

Since the Building societies demutualised several things have happened,.
1) New members barred from any windfalls
2) Much higher vote in favour required to get it approved
3) Every building society demutualisation has resulted in failure, turning the political climate strongly against it.
Any one of those things makes demutualisation much less likely. All 3 make it practically impossible.

planteria

all fair GC and EB... things may change. we shall see.

Thrugelmir

The tide is turning. As now its the Building Societies that are lending more for mortgages while the banks lend less. Demutualisation has had its day.

planteria

maybe. i think the building society model is currently working...and the simplicity of Savings<>Mortgages certainly appeals, even if a lot of BSs actually borrow funds to invest on the market, compounding the low savings rate environment.
but i suspect there will be further mergers between building societies. and at some stage another one is bound to see benefit in becoming a plc or receive a takeover approach from a plc that makes sense.