Back to March 2017

Leeds Building Society welcomes mutual support for savers

Leeds Building Society has welcomed research on behalf of the mutual sector which shows savers are better off with building societies.

The Building Societies Association (BSA) has highlighted findings by Savings Champion[i], comparing the returns available to UK savers from different deposit takers and finding the highest average rates were offered by building societies[ii].

“Many people don’t understand the difference between a bank and a building society but this research shows by not having to pay dividends to external shareholders, we can consistently pay more to our own members,” said Richard Fearon, Leeds Building Society’s Chief Commercial Officer.

“When we announced our 2016 annual results last month, we were pleased to be able to report that we paid an average of 1.66% to our savers, compared to the rest of market average of 0.97%[iii], equating to an annual benefit to our savers of over £69m.

“Our purpose as a mutual is to help people save and have the home they want, and our focus is to offer long term good value to our members and provide them with great service.

“The historically low interest rate environment has continued for eight years and remains a challenge for savers - we recognise this and continue to work very hard to develop good value products and keep rates as high as possible for as long as possible.”

 

1 Savings Champion is an independent consumer advice website – its press release can be viewed here:

https://www.savingschampion.co.uk/news/savings-news/building-societies-come-out-top-battle-against-banks/

2 The BSA used total market figures, covering all outstanding balances, so including existing accounts as well as new business, to indicate the relative long-term value offered by different providers. Its data showed savers with building societies received an average of 1.58% on fixed rate and notice accounts across 2016, compared to an average of 1.30% across all deposit takers.

https://www.bsa.org.uk/media-centre/press-releases/building-societies-offer-greater-value-to-savers

3 CACI’s CSDB, Stock, January-November 2016. CACI is an independent company that provides financial services benchmarking data and covers 85% of the high street cash savings market

Ends

Notes to Editors

Leeds Building Society won the awards for Best Building Society Savings Provider and Innovation in Personal Finance (Part and part mortgages) at the 2016 Moneyfacts Awards.

Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £15.9bn (at 31st December 2016). The Society’s head office has been based in the centre of Leeds since 1886.