2007-04-19 08:31:37 · 8 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
a building society is owned by its members. banks shareholders and private
2007-04-19 08:34:52 · answer #1 · answered by caffeine addict 2 · 1⤊ 0⤋
When building societies were 1st formed, it was by people grouping together their funds 2 help build their homes/villages etc. Everyone that put in would eventually get a home. Therefore, building societies were formed 4 the people by the people and are still run & owned by the people today.
Banks were designed to safeguard your money. The money u paid in would be invested, some of which would be returned to you in 'interest'.
The difference today is that banks do make their money by borrowing yours to invest and grow whilst charging you for the privillage. Building societies make money from people investing in them but return the profit back by offering good returns on rates. Building societies do have some charges but only when something has incurred an extra admin cost (such as requesting an extra statement etc)
2007-04-19 16:11:52 · answer #2 · answered by happylilpossom 3 · 1⤊ 0⤋
A bank is open for business to the general public and many are FDIC Insured up to $100,000. deposit, now a building society is only open to people in the building, is not FDIC protected, and if you leave the building you have to remove your funds. The building should pay a higher rate of interest, but is not always the case.
2007-04-19 15:40:20 · answer #3 · answered by zipper 7 · 0⤊ 0⤋
A building society is specifically set up to help the public save and buy houses. A bank is set up to enable financial transactions for the public and businesses and to take deposits and make loans.
2007-04-19 15:46:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I don't know if this is correct but I remember being told that Building Societies use your money to invest and that is where they get their profits from. Banks to not invest your money but make their money from the fees and charges. Hope this helps!
2007-04-19 15:39:22 · answer #5 · answered by pink lady 2 · 0⤊ 0⤋
banks make loads of money,building societies tend to be closer for the customer.
2007-04-19 15:34:53 · answer #6 · answered by steven e 7 · 0⤊ 0⤋
the building it,s self and some are aquipped with securty guards.
2007-04-19 15:36:10 · answer #7 · answered by ? 7 · 0⤊ 0⤋
nowdays not a lot, woolwich are owned by barclays etc
xxx
2007-04-19 15:35:21 · answer #8 · answered by Anonymous · 0⤊ 0⤋