A building society is also called a mutual. This is because building societies were made to benefit people who either wanted to save money or borrow money â€“ mainly to buy a home. The concept of mutual saving, or mutuality, goes back to the 18th century when a group of people pooled their savings to buy land and build houses.

What is a building society? How is one different to a bank?

What is a building society? How is one different to a bank? | YBS

At a glance:

A bank has customers, a building society has members.

You become a member when you open a savings account, or take out a mortgage with a building society.

A building society is run for the benefit of its members, instead of shareholders. Members can have a say in how a building society is run.

What is a mutual?

A building society is also called a mutual. This is because building societies were made to benefit people who either wanted to:

Save money.

Borrow money – mainly to buy a home.

The concept of mutual saving, or mutuality, goes back to the 18th century when a group of people pooled their savings to buy land and build houses.

The idea is the same today. Building societies offer savings and mortgages, to help people save for the future and borrow money to buy a home.

How members can use their voice

If you’re a member of a building society, you can vote in the Annual General Meeting (AGM). This means you can help make decisions about how it’s run and who takes certain roles in the company.

Our Annual General Meeting (AGM) helps shape our direction, including where we reinvest profits and the support we offer.

Building society vs bank: What’s the difference?

The main differences between a bank and building society are:

A bank has shareholders, a building society does not.

A building society has members who can influence decisions the company makes.

A bank has customers who don’t get a say in how the business is run.

In the past, building societies and banks would offer different products. For example, before the ‘80s, it was harder for banks to offers mortgages. Today, banks and building societies can offer similar products.

How safe is my money in a building society?

Your money is just as safe in a building society. The Financial Services Compensation Scheme (FSCS) protects money in banks and building societies. It covers up to £85,000 for each person.

How many building societies are there in the UK?

There are 42 building societies in the UK. In 1910, there was a whopping 1,723.

There are a couple of reasons why the number has gone down:

Smaller building societies were taken over by larger ones.

Some larger building societies decided to become banks, which is called ‘demutualisation”.

Our history

We started in 1864, in a single room in Huddersfield. Our founding members were a dentist, a shoemaker and a plumber. YBS is now one of the largest building societies in the UK.

For the last 160 years, our goal has stayed the same. We’re here to help our members own their homes and to save for whatever the future might bring.