Bank vs. Building Society

Lee_Howden

I'm considering moving my current Bank Account from HSBC to Nationwide as the deal with the Flex Account might just suit my needs. However, my wife has objected and said that it's not a good idea due to Nationwide being a Building Society. She reiterated that it was best to be in a Bank, something which I remember people saying from years ago.

What advantages are there between having your money in a Bank and Building Society? As far as I can see, there is little difference to the end user ie me who wants somewhere for his wages to paid in every month and pay his Bills from. Can anyone offer an explanation for my wifes theory?

nidO

There's no real difference from an account holder's point of view.

The only time my other half has ever had any difference with Nationwide compared to a bank was when she walked in to her local branch with a load of small change wanting it changed up and got told "sorry no can do, take it to a bank, we aren't one".

le_loup

There is no larger building society. Many banks are much smaller.
I have banked with Nationwide for more than 15 years, a delightful organisation.

Southend1

One difference is that nationwide is a mutual, which is beneficial to its members rather than to city shareholders

Archi_Bald

The current account basic functionality is 100% the same whether you go with a bank or Nationwide. Your money is as safe in Nationwide as it is in a bank. Nationwide's online banking is amongst the best, and obviously there is only one bank that also pays 5% AER. Not sure what your wife has in mind about being better off with a bank.

To keep the peace in your house, perhaps opt for TSB Plus instead? It's a proper bank, online facilities are good, and it pays 5% AER (which might last longer than the 12 months you get at Nationwide). You are allowed 2 TSB Plus accounts (plus another 2 joint ones if you fancy), but to get interest you have to go for paperless statements and paperless communication. The £500 monthly minimum funding can be met be just swapping £500 between the two accounts once a month.

p00hsticks

The Nationwide is the only building society signed up to the Faster Payments Service

http://en.wikipedia.org/wiki/Faster_Payments_Service

Gers

I've been happy with Nationwide, however my mother wants to withdraw funds from an ISA which matures on 31 August and has been told that they only way to gain access to her monies is either by transfer to a Nationwide account or by cheque if she wants to put it in a bank account. And it'll take two weeks to issue the cheque. She doesn't have a Nationwide savings or current account.

So old fashioned.

Archi_Bald

p00hsticks wrote: »

The Nationwide is the only building society signed up to the Faster Payments Service

http://en.wikipedia.org/wiki/Faster_Payments_Service

It is correct that they are a full member of the faster payments org but other building societies are indirect members and also offer FP. Though very few others do offer a current account.

Archi_Bald

Gers wrote: »

I've been happy with Nationwide, however my mother wants to withdraw funds from an ISA which matures on 31 August and has been told that they only way to gain access to her monies is either by transfer to a Nationwide account or by cheque if she wants to put it in a bank account. And it'll take two weeks to issue the cheque. She doesn't have a Nationwide savings or current account.

So old fashioned.

I thought this is quite normal for ISAs? It certainly is the same at Santander.

alanq

Lee_Howden wrote: »

Can anyone offer an explanation for my wifes theory?

What explanation does your wife offer?

Herbalus

I thought most people thought that money was best out of a bank because they're all greedy and nasty?

Here is an article from 2011 on moneywise.co.uk about the difference between the two. Should give you some more ideas.

There are also some interesting snippets from a government document on the future of building societies.

(building societies) have stayed faithful to a relatively low risk model, and have generally come through the financial crisis in good shape.

(About ringfencing regulations) This will mean building societies and ring-fenced banks have to comply with the same requirements.