Building Society vs. Credit Union

Attribute	Building Society	Credit Union
Ownership	Owned by its members	Owned by its members
Regulation	Regulated by the Financial Conduct Authority (FCA)	Regulated by the National Credit Union Administration (NCUA)
Eligibility	Open to anyone who meets membership criteria	Membership restricted to a specific group or community
Services	Offer savings and mortgage products	Offer savings, loans, and other financial services

Introduction

Building societies and credit unions are both financial institutions that offer similar services, such as savings accounts, loans, and mortgages. However, there are some key differences between the two types of institutions that consumers should be aware of when deciding where to do their banking. In this article, we will compare the attributes of building societies and credit unions to help you make an informed decision about which type of institution is right for you.

Ownership Structure

One of the main differences between building societies and credit unions is their ownership structure. Building societies are owned by their members, who are also their customers. This means that members have a say in how the building society is run and can vote on important decisions, such as the appointment of directors. In contrast, credit unions are owned by their members, who are also their customers. This means that members have a say in how the credit union is run and can vote on important decisions, such as the appointment of directors.

Regulation

Building societies are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This means that they are subject to strict rules and regulations designed to protect consumers and ensure the stability of the financial system. Credit unions, on the other hand, are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This means that they are subject to the same rules and regulations as building societies, but with some additional requirements specific to credit unions.

Membership

Building societies typically have a larger membership base than credit unions, which means that they can offer a wider range of products and services to their customers. In contrast, credit unions are typically smaller and more community-focused, which can make them a better choice for people who prefer a more personal banking experience. Additionally, building societies are open to anyone who meets their membership criteria, while credit unions are typically limited to people who live or work in a specific area or belong to a certain group.

Products and Services

Building societies and credit unions both offer a range of products and services, including savings accounts, loans, and mortgages. However, building societies tend to offer a wider range of products and services than credit unions, which can make them a better choice for people who want access to a full suite of banking services. Credit unions, on the other hand, may offer more personalized service and lower fees than building societies, which can make them a better choice for people who value customer service and affordability.

Interest Rates

One of the key differences between building societies and credit unions is their interest rates. Building societies typically offer competitive interest rates on savings accounts and mortgages, which can make them a good choice for people who want to earn a high return on their money. Credit unions, on the other hand, may offer lower interest rates on savings accounts and mortgages, but they may also offer lower fees and more personalized service, which can make them a better choice for some consumers.

Accessibility

Building societies and credit unions both have branches and ATMs where customers can access their accounts and conduct transactions. However, building societies typically have a larger network of branches and ATMs than credit unions, which can make them a more convenient choice for people who prefer to do their banking in person. Credit unions, on the other hand, may offer online and mobile banking services that are more advanced than those offered by building societies, which can make them a better choice for people who prefer to do their banking online.

Conclusion

In conclusion, building societies and credit unions are both valuable options for consumers who are looking for a more personalized and community-focused banking experience. Building societies tend to offer a wider range of products and services, competitive interest rates, and a larger network of branches and ATMs. Credit unions, on the other hand, may offer lower fees, more personalized service, and online and mobile banking options that are more advanced than those offered by building societies. Ultimately, the best choice for you will depend on your individual banking needs and preferences.