building and loan association: meaning, definition, pronunciation and examples
Very Low (Historical)Historical/Formal/Technical (Finance)
Quick answer
What does “building and loan association” mean?
A financial institution where members pay regular subscriptions into a fund from which they can borrow money to buy or build property.
Audio
Pronunciation
Definition
Meaning and Definition
A financial institution where members pay regular subscriptions into a fund from which they can borrow money to buy or build property.
Historically, a type of cooperative savings society, specifically a mutual association (often local or regional), designed to help members finance home ownership through collective savings and low-interest loans. This term is now largely historical, with the concept having evolved into modern savings and loan associations, credit unions, or building societies.
Dialectal Variation
British vs American Usage
Differences
In British English, the equivalent term is primarily 'building society.' The phrase 'building and loan association' is an American historical term, though 'building society' is also understood in the US in a historical context.
Connotations
In the UK, 'building society' is a common, modern term for a mutual financial institution. In the US, 'building and loan association' carries a distinctly historical, early-to-mid-20th century connotation, often associated with community-based finance.
Frequency
Extremely rare in contemporary UK English. In US English, it is obsolete in active use but appears in historical documents, legal contexts, and older literature.
Grammar
How to Use “building and loan association” in a Sentence
[Deposit/Save] [money] [with/at] a building and loan association.[Secure/Obtain] a [mortgage/loan] [from] a building and loan association.The [historic/local] building and loan association [was founded/operated].Vocabulary
Collocations
Examples
Examples of “building and loan association” in a Sentence
adjective
British English
- The building-society model originated in the UK.
- He had a building-society account.
American English
- The building-and-loan model was prevalent in the early 1900s.
- It was a building-and-loan charter.
Usage
Meaning in Context
Business
Used in historical analysis of financial systems or in legacy legal documents.
Academic
Appears in economic history, studies of housing policy, and the evolution of financial institutions.
Everyday
Virtually never used in modern conversation; would be replaced by 'bank,' 'mortgage lender,' or 'credit union.'
Technical
Found in historical financial regulations, old property deeds, and archival records.
Vocabulary
Synonyms of “building and loan association”
Neutral
Weak
Vocabulary
Antonyms of “building and loan association”
Watch out
Common Mistakes When Using “building and loan association”
- Using it to refer to a modern bank. *'I got my mortgage from a building and loan association' (sounds archaic).
- Confusing it with a real estate investment trust (REIT).
- Omitting 'and loan' and just saying 'building association,' which is incorrect.
FAQ
Frequently Asked Questions
No. It was a specific type of mutual, member-owned financial institution focused almost exclusively on savings deposits and home mortgages. Modern banks are typically shareholder-owned and offer a much wider range of services.
The term fell out of general use as these institutions were regulated, consolidated, or converted into modern savings and loan associations (S&Ls) or were absorbed by commercial banks, especially after mid-20th century financial reforms.
It is highly unlikely. While some mutual savings banks or credit unions with historical roots might still use variations of the name, the specific 'building and loan association' as a legal form is largely historical.
Many failed during the Great Depression. Survivors were often restructured under new regulations as 'savings and loan associations' (S&Ls) in the US or continue as 'building societies' in the UK, though many have since demutualized (become shareholder-owned banks).
A financial institution where members pay regular subscriptions into a fund from which they can borrow money to buy or build property.
Building and loan association is usually historical/formal/technical (finance) in register.
Building and loan association: in British English it is pronounced /ˌbɪldɪŋ ən ˈləʊn əˌsəʊsiˈeɪʃən/, and in American English it is pronounced /ˌbɪldɪŋ ən ˈloʊn əˌsoʊsiˈeɪʃən/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “As safe as a building and loan association (historical idiom implying security).”
Learning
Memory Aids
Mnemonic
Think: BUILDING a home + getting a LOAN = the ASSOCIATION that provides both.
Conceptual Metaphor
A COMMUNITY POOL FOR HOME BUILDING (money is pooled like water/resources for a common construction goal).
Practice
Quiz
What is the primary modern British English equivalent of 'building and loan association'?