The role of building societies

Building Societies(5)

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Traditional banking services are available from most of the larger UK building societies, in addition to their main business of loans and mortgages, in order to increase the available mortgage fund for lenders. Clients save their money with the society, therefore contributing to the size of the fund.
Building societies that offer bank accounts generally offer a better rate of interest on savings compared to commercial banks.
Savings Accounts
There are many types of savings accounts offered by building societies, often focused towards customers that save money for a long-term duration. These particular savings accounts typically yield higher interest rates compared to normal current accounts, in exchange for certain limitations regarding withdrawals or transfer of the funds to other accounts.
Mortgages and Loans
The main role of building societies has traditionally been to help their members buy a home for themselves. This is still the function of building societies today, and the funds deposited with them are used for mortgages.
The societyfs members are the main beneficiaries of the building societyfs enterprise, thus loans and mortgages cost less compared to similar products offered by commercial businesses such as other professional lenders and banks.
Other Services
In order to augment their main business, building societies often have a complete selection of financial services available such as investment management, financial consultation, pension plans and insurance policies. Which specific services are available vary depending on the respective building society, therefore keep in mind your particular needs when comparing societies to find which one best suits your requirements with what they have to offer.

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