Demutualisation
Building societies were originally set up as mutual organisations - that is, they were jointly owned by their customers and the profits normally paid in share dividends could be used to provide better rates for borrowers and savers.
Recently, many societies have decided on demutualisation and have become public companies listed on the stock market. As the customers have lost ownership, a windfall bonus is paid to each account holder - effectively, the company buys itself from its customers.
Many people have made good profits by opening savings accounts with small balances at mutual societies, purely in order to collect the windfalls.
Most major building societies have already demutualised - with the exception of The Nationwide, the remaining mutuals are mainly regional societies.
See also: Thousands of windfalls remain unclaimed
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