Building Society Mergers / takeovers possible windfalls

Gazz12

Hi

Firstly first post so sorry if this is answered elsewhere

I have had several accounts many years in the hopes of cash bonuses / windfalls / free shares

some came good years ago and I closed them once had the windfall

but the last few mergers that have happened have not produced any windfalls

is this way of getting a cash bonus now gone and forgotten

should i close all my accounts and move into 1, i already have the

best interest rates i can get on my other investments so not looking for tips where to put the cash

I have accounts with

Skipton, Nottingham, Market Harborough, Nationwide , Leeds and Holbeck, Coventry, Yorkshire, Chelsea, West Bromwich, Derby, Britannia and perhaps 1 or 2 more

all accounts were opened before you had to sign your rights away and most have £100 + interest since opening or whatever the minimum balance was highest was £2000.

Are any of the accounts worth keeping in the hope of a windfall ?

are any now classed as no chance of a bonus and need closing ?

thanks

Gazz

talexuser

Some of your list, for example Chelsea, Britannia and Leeds & Holbeck have already been merged or had mergers so are useless as possible windfalls. Cut a long story (and quite a few threads here) short, there is almost no possibility of windfalls from building societies in the near or even middle future.

Maybe in a generation when all the failures and banking collapses have been forgotten and fresh professionals repeat all the mistakes of the past.

Thrugelmir

Unlikely that others will demutualise and become banks. Building Societies are now growing again while banks and other lenders contract their mortgage books. The era has well and truly passed.

planteria

Leeds & Holbeck is now just Leeds: it hasn't merged with any other society or been taken over.

Chelsea was taken over by Yorkshire.

Britannia was taken over by Co-op Bank.

planteria

it is almost impossible to say Gazz, but fwiw i think there will be more consolidation in the industry in the next 2 to 3 years.
i have £100 in building society accounts..the opportunity cost of holding on to these is minimal.

Thrugelmir

Consolidation won't bring returns. It will be out of financial necessity.

EarthBoy

The Derby(shire) got into difficulties and was taken over by Nationwide.

The Buildiing Societies Association has a list of all the mergers and takeovers since 1980 here:

http://www.bsa.org.uk/bsa/media/migrateddocuments/mergers_july2013/

planteria

i wasn't saying that there Will be 'returns' Thrugelmir...noone knows. but i don't think small windfalls are out of the question in the foreseeable future. and with 'bets' only requiring a protected £100 there isn't much to lose.

PeacefulWaters

Building society mergers in good times tended to produce a windfall of c4% of a saver's balance. Not worth my time opening an account with £100.

Demutualisation tended to produce value in the £hundreds for a saver with £100. But the pursuit of growth via wholesale markets has been shown to be flawed as a business strategy. I can't see any reason for a building society's board to even discuss it, let alone propose it to the members.

talexuser

planteria wrote: »

Leeds & Holbeck is now just Leeds: it hasn't merged with any other society or been taken over.
.

No, it merged with the Mercantile in 2006.

planteria

it may have taken on others, but The Society remains the same society. it hasn't been taken over, and could, in theory, produce a windfall..whereas Britannia and Chelsea Building Societies are no more.