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Building Society Rates

About Building Societies

Building societies can be traced all the way back to the industrial revolution. They were set up as small local organisations whose members pulled funds together, allowing them to purchase land and build houses. The first known building society was formed in 1775 in Birmingham and like most early societies was ‘terminating’, meaning the business was closed after all of its members had been housed. This changed when societies started accepting deposits from individuals who had no desire to borrow to buy a home, but simply wished to invest their money. No longer terminating, these formed the basis of the ‘permanent’ societies we know today.

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