Banks vs Building Societies

posh*spice

I currently have my savings with the Building Society. Is it safer to have you money with a building society than a bank. Are their loans linked to their savings as a ratio? Not like the banks which seem to have parcels of strange debt that consists of who knows what.

Many Thx

Posh

moonrakerz

In theory there should be no difference, but Building Societies are still limited as to what financial tricks, sorry, I mean dealing they can indulge in.
Several of the smaller Building Societies stopped giving out mortgages recently, because they didn't have the money to lend - the Banks (like Northern Rock) would just borrow the money from someone else ! I know which I consider to be a better run organisation.

It may be worth noting that a Building Society has not gone bust since the 19th Century. Those that have run into difficulties since then have invariably been "taken over" by other Building Societies - to keep their good name going.

It was interesting to note how all the other banks rallied round Northern Rock and helped them in their hour of need ! :rotfl: :rotfl: