Between £647 and £815 each - that's what more than 2.5m members of Bradford & Bingley building society look set to pocket if, as seems highly likely, approval is given for its conversion to a bank.
It's been a long wait but Britain's second-largest building society this week finally unveiled full details of exactly who will be getting what and when.
The headline news is that members look like getting quite a bit less than the unofficial estimate of £1,000 that was being bandied around last year.
However, looking on the bright side, the figures above are quite a lot higher than some pundits had been speculating. One or two analysts recently suggested payouts could be as low as £350-£400 as a result of the banking sector having plunged in value on the stock market during the last few months.
B&B said this week that every eligible member will receive 250 shares worth an estimated £2.59 to £3.26 each, which works out at a total of £647-£815. If one takes the mid-point of this price range, that would mean payouts worth £731.
It was in April last year that B&B members voted by 62% to 38% in favour of carpetbagging plumber Stephen Major's proposal that it float on the stock market and pay windfalls that he claimed would average £2,000 (how wrong he was... )
The result was a terrible blow to the society's board, which had urged members to vote for it to stay a mutual (member-owned), warning them: "If we turned into a bank, our first priority would change from serving members to maximising profits."
That was then, this is now - B&B's bosses this week painted a glowing picture of its future as a "pro-consumer plc" and insisted that little about the way it deals with its customers would change as a result of conversion.
For the change of status to go ahead, members will have to approve the plans. Voting packs, which include the 140-page "transfer document" giving full details of the proposal and the voting form, start going out to members from this Monday.
Here we answer some of the questions policyholders are likely to have.
So what happens now?
B&B is urging members to use their vote. As well as allowing people to vote by post, it is holding a special general meeting at Sheffield Arena on July 17 where they can have their say in person. The result of the ballot will be announced at the end of the meeting. Those voting by post must get their forms back to the scrutineers by midnight on July 12.
For conversion to go ahead, 51% or more of B&B's borrowers and at least 75% of savers must vote in favour (and at least half of its savers must take part in the vote).
Provided this happens - and, based on past experience, it almost certainly will - B&B will float on the stock market on December 4. A facility will be put in place to allow people to sell shares if they wish.
Hang on, the vote took place last year. Why does there have to be another one?
Last year's vote wasn't a proper conversion ballot - it was more of an opinion poll. By law, there now has to be a formal vote on the proposal that B&B becomes a bank. "Each and every vote is important. A large turnout and a positive vote is required if we are to proceed with conversion," says chairman Lindsay Mackinlay.
How do I know if I'm eligible for a windfall?
In order to qualify for a payout, a saver must have had at least £100 in their account(s) on two dates - April 25, 1999 and May 21, 2000 - and must also have held their account(s) continuously between the first of those dates and December 3, 2000. Borrowers need to have had a B&B mortgage on April 25, 1999 and must also hold one with the society on December 3, 2000.
I'm a B&B saver and I also have my mortgage with them. Do I get two lots of shares?
Yes.
My son has a KidZone children's account. Will he get a windfall?
Yes, provided he meets the eligibility criteria applying to adults. While many past flotations excluded kids from windfalls, B&B is awarding full payouts to 129,000 children, including for the first time 96,000 youngsters whose accounts are in the names of trustees (usually their parents).
My husband opened a B&B account in 1995 and died in December last year. I've inherited the account. What's my position ?
Again, provided the minimum balance requirements are met, you'll be entitled to receive the same size windfall your late husband would have got had he been alive at the time of conversion. You'll need to formally notify the society of your husband's death, if you haven't already done so.
My mother is in a nursing home and has a B&B account, though it is operated by a nurse there. What happens with her?
Around 10,000 trustee account holders for elderly, ill and disabled people will get payouts under B&B's conversion plans. Legislation was introduced in 1997 to protect the rights of those who rely on others such as carers to operate their accounts. Now, a nurse in a care home operating accounts on behalf of seven mentally disabled residents would get seven payouts, plus one for herself as well if she has her own qualifying account. Under the old system, she would have only got one payout because she was the first-named on the accounts.
I've read in the past that mortgage-holders have a lot more to lose from conversion than savers. Is that true?
Yes. B&B has already warned that if it becomes a bank, "we would have to raise mortgage rates". Building societies typically charge variable rate borrowers up to 0.5% less than banks. For example, Nationwide's standard variable mortgage rate is 7.29% while the Halifax's is 7.74%. On a £60,000 interest-only mortgage that adds up to an annual saving for the Nationwide borrower of £270. These figuresshow that many borrowers windfalls could be cancelled out by higher mortgage costs.
To find out more
Bradford & Bingley's conversion helpline, 0845 601 1456, is open 8am-8pm Mon-Fri, 9am-noon Sat. Information is also available on B&B's website: www.bradford-bingley.co.uk.
Or you can look at www.bradford-bingley.org.uk. This is not an official B&B site. It's run by a group of members who oppose conversion and puts the case for staying mutual.
Those of a pro-mutual persuasion may also want to look at www.sobs.org.uk, the website of the Save Our Building Societies campaign group.
