Cambrige Notes: Building Societies

Building Societies

• Is a type of a financial institution.
• A building society is a financial organization which pays interest on investments by its members and lends capital for the purchase or improvement of houses.
• The following building societies currently operate in Zimbabwe: CBZ Building Society, ZB building society, CABS and FBC building society.

Functions

• Safe keep depositors’ deposits through savings, deposits and fixed share accounts.
• Provide mortgage finance and other forms of building loans.
• The provide Automated Teller Machines (ATMs).
• They provide purchase points e.g. in supermarkets.
• They provide cash and switch cards
• They issue certified cheques upon request.
• Operate stop orders for their clients.
• Give advice on investment portfolios.
• They give loans against paid up permanent shares (PUPS).
• They facilitate RTGS transfers.

To learn about other Financial institutions go to the Financial Institutions page.

To access more topics go to the Commerce Notes page.