Bank V building society

[Pootle]

What is the difference between a bank and a building society? 

[ursula62]

Building societies were originally "friendly societies" and the members/investors all held a share in the organisation.

Banks were companies.

There's no difference really nowadays, particularly since all the UK building societies became PLCs in the 90s and are governed by the same rules as any other PLC.

http://www.rbs.co.uk/Group_Information/Memory_Bank/Our_History/A_History_Of_Banking/other_banks.htm

[Loosehead]

A building society is the same legal enity as a club, obviously on a larger scale, a bank is a profit making organisation. Several building societies still exist the largest of which is Nationwide. In legal terms they are non profit organisations and do not produce a profit, they produce a "surplus of income over expendeture" (hopefully!). Originally BS's where formed so that a group of people could save and eventually build a house for all the members, they where then dissolved. Out of this came "Permanent Building societies" who where set up to facilitate saving and lending so that people could buyor build property, from these we have today's Building societies. They do look and behave like banks but in reality they are very different.

Banks exist to make profit for their shareholders and are generally limited comapanies.