What is the difference between a building society and a bank?

What is the difference between a building society and a bank?

Because banks are listed on the stock market, they are businesses and therefore work in the favour of those who invest in them, specifically their shareholders. Building societies, however, are not commercial businesses, they are ‘mutual institutions’ – owned by, and working for, their customers.

What is the main function of a building society?

As an institution which offers financial services, a building society is a mutual organisation owned by its members who are also the stockholders. The main function of a building society is to offer mortgages and savings facilities for its members.

Is HSBC a bank or building society?

HSBC Holdings plc is a British multinational investment bank and financial services holding company.

What is building society amount?

A building society roll number is a number used to identify your account. If you are making a payment to a building society then you need the roll number. You should add the roll number in the reference section. Most banks now have an account number and sort code rather than a roll number.

Who owns a building society?

A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially savings and mortgage lending.

What are the disadvantages of building societies?


  • Building societies are not as secure as they have historically been. The choice of mutual is falling and failures have become more commonplace.
  • Many building societies have geographical restrictions.
  • Building societies often have a restricted choice of products.

What means building society?

A building society is a financial institution that is owned by its members as a mutual organisation.

What are the advantages of a building society?

Lower running costs. On average, a building society is cheaper to run than a bank as it’s owned by its members. This could mean that the savings are passed on to the members in the form of competitive interest rates.

Is building society a bank?

A building society is a type of financial institution that provides banking and other financial services to its members. Building societies resemble credit unions in the U.S. in that they are owned entirely by their members. These societies offer mortgages and demand-deposit accounts.

What are 2 advantages of building societies?

What are the top 10 building societies?

Top 10 Building Societies

Rank Name Membership
1 Nationwide 16,300,000
2 Coventry 2,023,500
3 Yorkshire 2,634,530
4 Skipton 1,075,230