Choosing the right bank or building society can be a confusing process.
How do you choose which bank or building society is right for you?
First let’s explain the difference between a bank and a building society?
What is the difference between a bank and a building society?
About Banks
The banks that you see in the high street (HSBC, Barclays, Lloyds TSB, Nat West etc...) are companies whose aims are to make profits for their shareholders. Shareholders are the many individuals who have invested in these companies so they are sort of part owners of the bank. Most of the big banks are now international and have millions of customers so they are not able to give much of a personal service. That is why it is important for you to be informed and know how to get the best from the banking services available.
About Building societies
Building societies don’t have shareholders, when you open an account with a building society you become a member; this means that the profits they make go back into the business to benefit the members. Building societies offer the same services as banks.
How to open a bank or building society account
Banks DO NOT HAVE to open an account for you and unless they are discriminating against you on the grounds of race, sex, disability, religion or sexuality, there is nothing you can do about it. To open an account you will need to provide two different types of identification, like a passport, tenancy agreement or a bill (gas, electric, phone). If you don’t earn much money or you have a bad credit history, you may find it difficult to open a standard bank account (called a current account). If this is the case you maybe able to have a basic bank account. (See info on the Types of bank account page)
