When 2 building societies join, does that make them twice as safe or twice as likely to collapse?

Question

I recently discovered that I have 1 yr bonds in 2 building societies that are joined and the combined amounts are over the guaranteed government protection figure of 35k. If I withdraw 1 of the bonds I will lose a lot of interest.

The 2 societies are Nationwide and Portman. What do you think I should do? I can't afford to risk losing that kind of money.

Answer 1

Very good question.

Joining usually makes them more powerful which in theory should make them safer.

In your case Nationwide has absorbed Portman and both were already safe building societies.

You should have received a windfall because of this merger.