building-society
Definition
- Noun:
- A financial institution: A "building society" is a type of financial organization, primarily in the United Kingdom and other Commonwealth countries, that offers savings accounts and provides mortgage loans for purchasing or building homes. It is similar to a bank but traditionally focuses on lending for property and is owned by its members (savers and borrowers) rather than shareholders.
Usage Examples
- (A financial institution where she can save money.)
- (The institution lent him money to buy a home.)
Advanced Usage
"to be a member of a building society": to hold an account or have a loan with a building society, which gives the person ownership rights.
- As a member of the building society, he can vote on important decisions. (He has a stake in the organization because he saves or borrows with it.)
"building society vs. bank": Building societies are often seen as more community-focused and less profit-driven than banks, as they reinvest profits into better rates for members.
- Many people prefer building societies over banks for their ethical lending practices. (A comparison highlighting the institution's member-owned structure.)
Variants and Related Words
- Building society (n): the standard term; no common variants.
- Building society account (n): a savings or checking account offered by a building society.
- He opened a building society account to earn interest on his savings. (A specific type of account tied to the institution.)
Synonyms
- Thrift institution: a general term for a financial organization that accepts savings and makes loans, often used in the US (e.g., savings and loan association).
- Mutual savings bank: a similar member-owned institution that focuses on savings and mortgages.
- Home loan bank: a less common synonym emphasizing the mortgage-lending function.
Related Idioms
- "Building society": No common idioms are associated with this word, as it is a specific financial term. However, in British English, it is often used in phrases like "put your money in a building society" to mean saving securely for a home.
Additional Notes
- Cultural context: Building societies originated in the 18th century as "terminating building societies," where members contributed to a fund until enough money was collected to build homes for each member. Modern building societies are permanent institutions.
- Legal status: In the UK, building societies are regulated by the Prudential Regulation Authority and the Financial Conduct Authority, distinct from banks.