Britannia - how long before not mutual?

tomprice

Hi,
Not really sure what i mean to ask here.

You know when a building society has no shareholders or whatever it is like Britannia. Then they can change and members can get a windfall?

What exactly is this called.

Is there any chance of it happening it Britannia?

Currently i have 2 accounts with them and been a member for 10+ years. I want to move to better rates so probably time to say good bye but don't wish to miss out on a windfall in years to come.

How do they work? Based on amount held over certain period? Based on years held etc?

Thanks.

LittleVoice

Demutualisation is one term.

If a building society converts to being a public limited company, it will have set the criteria to apply.

Certainly it will include anyone with at least £100 in a share account with them - because these are the people who can vote on the conversion.

The value of the pay-out could be a flat amount of so many shares but usually rises in tiers depending on the balance in accounts between two specified dates.

If it is done as a take-over by another organisation, the first of those will be the day before the take-over announcement is made (so that no one can then load money into their account to increase the amount of their payout).

333rocky333

Not sure if it is the best thing to do but,

I too thought like you, so what I done is kept moving my money to better brittania accounts, checking each time that they will still honour my over 10 years status.

And as I still get the loyalty bonus for each account, and this is based on 10 years loyalty, I think it partly makes up for the lower rate, compared with some others.

I now just keep the minimum in each to keep the accounts open , just in case some thing does happen.

baby_boomer

It is likely that you will continue to lose money if you stay with Britannia. Is that what you want.

They have a history of paying poor rates for which the declining points available from the Britannia Reward Scheme do not adequately compensate.

dwsjarcmcd

The chances of any building society converting in the current climate is probably nil. The reason so many converted was to gain greater access to the wholesale money markets, which would allow them to grow faster and diversify their lending. Northern Rock, for example!

I do however, think their will be further consolidation within the BS sector over the next year, so that may be a reson to leave money in Britannia

baby_boomer

dwsjarcmcd wrote: »

I do however, think their will be further consolidation within the BS sector over the next year, so that may be a reson to leave money in Britannia

Not unless you think Nationwide will take over Britannia. Britannia may take over other smaller societies but that won't trigger a windfall for Britannia members.
Nationwide is no. 1 and Britannia is no. 2 of the 59 left.

Britannia's average balances are among the lowest in the industry as people such as the OP subsidise their business by putting up with low rates in the forlorn hope of a windfall.

bristolleedsfan

baby_boomer wrote: »

Not unless you think Nationwide will take over Britannia. Britannia may take over other smaller societies but that won't trigger a windfall for Britannia members.
Nationwide is no. 1 and Britannia is no. 2 of the 59 left.

Britannia's average balances are among the lowest in the industry as people such as the OP subsidise their business by putting up with low rates in the forlorn hope of a windfall.

:T I thought the same thing, just couldnt be bothered to reply to what has become a repetitive/tedious subject. :rolleyes:

Also the people that say they think their might be mergers within the next 12 months where precisely do they believe that the payments are going to come from:rolleyes: or are they talking about Gainsborough style nil payment mergers. :rolleyes:

( Or perhaps Derbyshire members getting bought out for 50.00/100.00 a head before tax :rolleyes: )

steady__eddie

To save too many sleepless nights, probably best to foresake hundred quid in one of their a/c.s. Nowt respectable enough to seriously save with them now that their 7.5% regsave is closed. 5.6% fixed rate ISA will be marginally higher when you take into account the loyalty bonus which will be capable of being tax free but incapable of being compounded into the ISA. Better results can be easily achieved elsewhere.

tomprice

Thanks.

So you are all saying that as long as i keep £100 in any account of theirs i'm likely to be included if it was to ever happen?

That's my main question really.
Thanks.

bristolleedsfan

tomprice wrote: »

So you are all saying that as long as i keep £100 in any account of theirs i'm likely to be included if it was to ever happen?

quote]


Yip ..............................

ianmr65

bristolleedsfan wrote: »

tomprice wrote: »

So you are all saying that as long as i keep £100 in any account of theirs i'm likely to be included if it was to ever happen?

quote]


Yip ..............................

Though most have clauses for new saver 'member' accounts saying that you forgo the right to a windfall payment, in the case of takeover and de-mutulisation, to discourage carpetbagging. And many accounts don't bestow memebership rights. So read the small print.


Ian's CB history
TSB
Halifax :mad:
Bradford & Bingley
Abbey :rolleyes:
Woolwich

Yorkshire Over £100 since 1997
Nationwide Over £100 since 1997