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    • romneymarshan
    • By romneymarshan 20th Apr 17, 7:52 PM
    • 1Posts
    • 0Thanks
    romneymarshan
    The Co-op Bank
    • #1
    • 20th Apr 17, 7:52 PM
    The Co-op Bank 20th Apr 17 at 7:52 PM
    Did I imagine it or is The Co-op Bank in trouble? The last I heard, The Bank of England were deciding on a course of action.
    My problem is that I have £14k (and falling) above the safety level, but am about to pay out £61k on a TINY studio flat within the next 10 weeks.
    Should I sit tight and hope for the best, or should I transfer my £30k of Britannia ISAs to another bank?
    I am a 61 yr old woman with no job, no benefits and no pension until 66, and feeling a bit vulnerable
Page 1
    • Chapuys
    • By Chapuys 20th Apr 17, 8:25 PM
    • 127 Posts
    • 102 Thanks
    Chapuys
    • #2
    • 20th Apr 17, 8:25 PM
    • #2
    • 20th Apr 17, 8:25 PM
    Did I imagine it or is The Co-op Bank in trouble? The last I heard, The Bank of England were deciding on a course of action.
    My problem is that I have £14k (and falling) above the safety level, but am about to pay out £61k on a TINY studio flat within the next 10 weeks.
    Should I sit tight and hope for the best, or should I transfer my £30k of Britannia ISAs to another bank?
    I am a 61 yr old woman with no job, no benefits and no pension until 66, and feeling a bit vulnerable
    Originally posted by romneymarshan
    The Co-op Bank put itself up for sale in February after saying it was struggling to earn enough money to mend its finances from its previous crisis in 2013/14. The Bank of England, in March, placed the Co-op Bank under "intensive supervision" so the Bank of England is monitoring them very closely. If things to bad, there is a contingency plan to ensure its orderly failure. Co-op Bank customers will be protected whatever happens to the bank.

    You will be protected for 100% of £85,000 you have with the Co-op bank. However from 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank if it collapses. Payments in connection with the following could be categorised as temporary high balances:

    Sums paid to the depositor in respect of:
    • Real ettate transactions (property purchase, sale proceeds, equity release) relating to a depositor's main or only residence
    • Benefits payable under an insurance policy
    • Personal injury compensation (unlimited amount)
    • Disability or incapacity (state benefits)
    • Claim for compensation for wrongful conviction
    • Claim for compensation for unfair dismissal
    • Redundancy (voluntary or compulsory)
    • Marriage or civil partnership
    • Divorce or dissolution of their civil partnership
    • Benefits payable on retirement
    • Benefits payable on death
    • A claim for compensation in respect of a person’s death
    • Inheritance
    • Proceeds of a deceased’s estate held by their Personal Representative

    Note: Deposits over £85,000 are protected up to six months from when the amount was first credited or from the moment a qualifying deposit became legally transferrable.

    Overall I think you should be fine. However if you are still worried, transfer it to NS&I as they are 100% on anything unless the government finances go bankrupt.
    Last edited by Chapuys; 21-04-2017 at 3:50 AM.
    • colsten
    • By colsten 20th Apr 17, 9:08 PM
    • 8,717 Posts
    • 7,369 Thanks
    colsten
    • #3
    • 20th Apr 17, 9:08 PM
    • #3
    • 20th Apr 17, 9:08 PM
    Reduce your balance in the COOP straight away to below £85,000.

    The temporary high balance protection mentioned in the earlier post does not apply to you unless you received a large sum of money in the given categories in the last 6 months.
    Last edited by colsten; 20-04-2017 at 9:11 PM.
    • PeacefulWaters
    • By PeacefulWaters 20th Apr 17, 9:11 PM
    • 6,838 Posts
    • 8,428 Thanks
    PeacefulWaters
    • #4
    • 20th Apr 17, 9:11 PM
    • #4
    • 20th Apr 17, 9:11 PM
    Reduce your balance in the COOP straight away to below £85,000.
    Originally posted by colsten
    It is as simple as this.
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