My bank wants to change. Is this good or bad?
September 2, 2011 12:34 PM Subscribe
Why is my bank
becoming a stock savings bank rather than a mutual savings bank and is this a good or bad thing for me? Please assume complete, total and embarrassing financial ignorance in your reply: I know absolutely nothing, possibly less than nothing, about money, economics, banking, stocks and finance.
posted by mygothlaundry to Work & Money (8 answers total) 1 user marked this as a favorite
My bank sent out a big package of paperwork announcing that they want to convert from a mutual savings bank to a stock savings bank. Apparently I, as an account holder (I have a checking account, a savings account and a CD) am supposed to vote on the conversion. I also have an opportunity to buy stock - minimum investment, $250.
I don't understand the change here. What does it mean? What's going on? Should I be worried? Is this a sign that my bank is going under? Which way should I vote, and why? And, would some stock be a good investment? I've never bought stock before and I really can't afford to lose money but I could swing $250 going out of circulation for a year or two if it would return to me as, say, $350.