hroughout the UK you can shareholders any dividends as
find branches of large, they do not have shareholders.
multinational banks on The societies claim that this
almost every High Street. These enables them to pay more money
banks are well known, well directly to their customers by
recognised and generally well way of higher interest rates on
understood. Alongside them, savings accounts and cheaper
though, you will often find a mortgage rates for borrowers.
Building Society. Traditionally,
these only offer their services When a building society is first
to people who live within a local set up, it is done so as a mutual
catchment area and the societies institution. This means that
are regional rather than every single account holder is
national. As time has gone on also a member of the institution
this is not so much the case and and as such has certain rights
many building societies accept when a decision is made. In some
customers from anywhere in the circumstances an issue can be put
country, offering services by to a vote. At times such as these
telephone and internet to help every customer gets a vote,
those who do not live near to a whether they have one pound or a
branch. million pounds in their account.
Each vote has the same level of
So, what is the difference importance as the next and so
between a bank and a building customers truly feel that they
society? Well, banks are have the opportunity to be
generally listed on the stock involved in the running of the
market and as such are run by business.
shareholders. Building societies
are not on the stock market and Many building societies now have
so do not have to pay sold off their mutual institution
status, giving their members a stock market and morphed into
lump sum instead. These companies traditional banks.
have then been listed on the
About the Author:
Mark Lambie is the founder of Loans uk a website providing homeowners with cheap loans uk
