Britannia offers cash for members' loyalty
Thursday 08 February 1996
Its move, which could leave members with very large savings accounts hundreds of pounds richer each year, is aimed at stemming the recent tide of takeovers and flotations among mutual societies.
Unlike bonus schemes launched recently by Bradford & Bingley and Yorkshire building societies, which cut rates for borrowers and peg them for savers, Britannia's scheme will involve an annual cash handout to members.
The society's dividend scheme will mean a substantial cut in its total profits. After fixing a minimum profit needed to develop the society's business, the excess will be handed back to members.
Analysts said yesterday that the cash handover would have the dual effect of retaining members' loyalty and of warding off potential takeover bids from other financial institutions.
Britannia and its external PR company, Brunswick, refused to comment yesterday on any aspect of the society's plans.
The society's decision follows announcements in the past two years by many other top-10 societies that they are either to demutualise or be taken over.
- 1 'Cheeky' Nando's under fire for apparently coming onto a customer on Twitter
- 2 Saudi Arabia mosque bombing: Two volunteer security guards hailed as heroes for stopping Isis suicide bomber reaching worshippers
- 3 Playboy model April Summers speaks out about being a victim of revenge porn
- 4 There is something wrong but very right about this Bible illustration
- 5 iPhone 'effective power' text: how to be safe from iOS bug that lets people crash your phone
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
A nation of inequality: How the UK is failing to feed its most vulnerable people
Australian man punched in the face for defending Muslim women from abuse on train
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...