Britannia rewards members' loyalty
UK-based Britannia Building Society has published its interim results and is on track to pay out some £40m to its million-plus members next February.
While some members will receive up to £500 each, most will qualify for a lower amount - probably £30-40. Britannia has paid out £250m in bonuses over the six years that the programme has been running.
Britannia is a mutual society (it is owned by its members), so does not have to pay dividends to shareholders. Each year it retains enough profit necessary to maintain the financial strength of its core membership business and then shares the rest among its members.
Any member of the Society can, after three years of membership, join the programme. Bonus points are given on the member's portfolio of products. The programme rewards commitment to the Society: the more products in the portfolio, the more points are earned, and the points earned rise with time too. After five years, 1.5 times the usual number of points are earned and after ten years, double the usual number. The value of a point varies from year to year - £0.32 was paid per point in 2002.
For example, a member who has a ten year relationship with Britannia; has a mortgage advance of £100,000 with building and contents insurance; plus an average investment balance of £10,000, a personal loan and two Britannic products could expect a payment of some £350