The Chelsea and Yorkshire Building Societies announced today that they will merge, creating a building society big enough to rival the UK’s largest mutual, Nationwide.
The new society will have assets worth £35bn and a network of 178 branches – though it is likely that some will close after the merger is completed.
It is expected that the Chelsea and Yorkshire building societies will officially join together by 1 April 2010, though the merger must be approved by members of both building societies and the Financial Services Authority (FSA) before it can take place.
Iain Cornish, chief executive of the Yorkshire, will remain as head of the new mutual once it is established. He said that building society members will not receive windfall payments as a result of the deal, due to the financial difficulties faced by both the Chelsea and the Yorkshire in 2009.
The mutual formed by the merger will be known as Yorkshire Building Society, but the Chelsea brand will be retained. Chelsea will continue to have its own branches and offer its own financial products to consumers.
However, after 30 December 2010 the new building society will offer just one set of protection to customers under the Financial Services Compensation Scheme (FSCS).
This means that savers will be able to hold a maximum £50,000 of savings across both the Yorkshire and Chelsea brands from 31 December 2010 if they want to be sure their money is safe.
To find out more about keeping your money safe, read the .
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