Cracks in Building Society foundations

Published:
30/03/2009
Topic:
Press Release

After the collapse of Northern Rock, conservative building societies continued their reputation as the 'old reliable' of high street finance, but in the past year it has been these mutuals feeling the merger and takeover heat even more than the banks.

  • Society numbers subside to 50

Kevin Mountford, head of banking at moneysupermarket.com, said: "With Dunfermline's partial takeover by Nationwide, the number of building societies has dwindled from 55 to 50 in the past year. It throws into question the long-held belief that building societies are more conservatively managed and, as such, will be around forever.

"With the Dunfermline, again we have seen the industry taking over the positive aspects of a failed operator while the taxpayer is left holding the rubbish.

"Sadly the consolidation we are seeing across brands isn't doing much for consumers - as highlighted by Scarborough's recent announcement, removing its savings range.

"Furthermore, building societies have lost their competitive edge over the banks, with the top mortgage and savings deals usually being with a bank now."

BANK PRODUCTS

BUILDING SOCIETIES (available nationally)

Easy Access Savings
(based on £1,000)

AER
(T&Cs may apply)

 

AER
(T&Cs may apply)

Alliance & Leicester
Online Saver Issue 4

3.00%

Mansfield BS
Postal Reward (1st Issue)

3.00%

Abbey
Instant Access Saver

3.00%

Yorkshire BS
Internet Saver

2.75%

Egg
Savings Account

2.85%

Barnsley BS
e-save

2.75%

1 Year Fixed Rate Bonds
(based on £5,000)

Halifax
Web Saver

3.40%

Derbyshire BS
1 Year Bond

3.30%

The Co-operative Bank
1 Year Fixed Term Deposit

3.00%

Britannia BS
1 Year Fixed Rate Bond

3.20%

Lloyds TSB
1 Year Term Deposit

3.00%

Nationwide BS
1 Year e-Bond

3.15%

Cash ISAs
(based on £3,600)

Barclays
Golden ISA

3.61%

Manchester BS
Premier Instant ISA

2.75%

NatWest
Cash ISA Plus

3.51%

Harpenden BS
Simply ISA

2.50%

Alliance & Leicester
Reward ISA

3.50%

Newcastle BS
ISA+

2.50%

2 Year Fixed mortgages
(based on £100,000)

Rate and fee
(T&Cs may apply)

 

Rate and fee
(T&Cs may apply)

HSBC

2.89%
(£1,499 fee)

Chelsea BS

3.39%
(£995 fee)

Royal Bank of Scotland

3.49%
(£799 fee)

Yorkshire BS

3.69%
(£495 fee)

Abbey

3.60%
(£745 fee)

Nationwide BS

3.88%
(£995 fee)

2 Year Tracker mortgages
(based on £100,000)

Royal Bank of Scotland

3.19%
(£799 fee)

Principality BS

2.99%
(£799 fee)

Abbey

3.34%
(£995 fee)

Chelsea BS

3.24%
(£995 fee)

NatWest

3.49%
(£799 fee)

Cheshire BS

3.45%
(£999 fee)

Sourced by www.moneysupermarket.com 27.3.09

 

CHANGES SINCE SEPTEMBER 2007

Provider

Merged With

Lloyds

HBOS

Santander (Abbey)

Alliance & Leicester

Bradford & Bingley

Nationwide BS

Derbyshire BS

Cheshire BS

Dunfermline BS

Yorkshire BS

Barnsley BS

Britannia BS

The Co-operative Bank

Skipton BS

Scarborough BS

 

 

 

Provider

Taken Over

ING Direct

Kaupthing Edge (Online Deposit)

Heritable Bank (Online Deposit)

UK Government

Northern Rock

 

 

 

 

 

Sourced by www.moneysupermarket.com 27.3.09

 

- Ends -

 

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Media contacts

Susannah Hardy - Head of PR
0778840 5224
01244 665793
susannah.hardy@moneysupermarket.com

 

Paul Lawler - PR Manager (Financial Services)
07872 379545
01244 370317
paul.lawler@moneysupermarket.com

 

Nicola Parry - PR Officer (Financial Services)
07872 379549
01244 370318
nicola.parry@moneysupermarket.com

 

Emma Morris - PR Manager (Travel & Shopping)
Travelsupermarket.com
Moneysupermarket Shopping
07775 941689
01244 220671
emma.morris@moneysupermarket.com

 

Clare Francis
Head of Content
07595 067818
01244 220650
clare.francis@moneysupermarket.com

 

Michael Gwynne
Lead Media Communications Officer
01244 665742
michael.gwynne@moneysupermarket.com

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