The cost of conversions: millions of people stand to receive windfalls of free shares this year, as several building societies abandon mutuality. What's the catch?
Article Abstract:
The Abbey National, Cheltenham & Gloucester (C&G) and National & Provincial have all become banks, and there is expected to be major changes when the remaining large societies convert to banks. The savings and mortgage market will become dominated by a few large banks. Some converters have taken advantage of the fact that members will not risk losing their bonus if they withdraw their savings, by reducing the rates paid on instant access deposits. However competition for savers' money will increase as newly-converted banks try to secure customer loyalty. The large remaining mutual building societies have reduced mortgage rates, whilst banks have not matched them, including C&G, which had ended its 'price promise' to keep rates lower than the average of the top five.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 1997
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Savers pay a high price for loyalty
Article Abstract:
Some UK building societies and banks have responded to growing competition from supermarkets and insurers by widening the range of accounts they offer. In some cases, new customers are being offered attractive interest rates while rates on the accounts of loyal customers are being reduced. A further problem is that accounts have become more complex, thus making them harder to compare. Savers must constantly monitor their interest rate to ensure that it remains competitive.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 1998
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Why windfalls aren't in your best interest
Article Abstract:
Issues are presented concerning the mortgage and savings interest rates which are available to borrowers and savers with accounts at both mutual building societies and those which have converted into banks.
Publication Name: Which?
Subject: Consumer news and advice
ISSN: 0043-4841
Year: 2001
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