Co-Op Bank Fixed Rate Savings 6.59%

daveoc22

Like many people I'm looking around for a fairly 'safe' haven for my money and I came across some fixed rates at my own bank.

I've banked with them for over thirty years and I've never known them have competative rates, but I have to say these look pretty reasonable:

1 year 6.50%
2 year 6.59%
3 year 6.59%

Monthly interest option, payable to another account, at slightly smaller rate.

Any reason not to use them?

nilrem_2

No reason at all, I took out a Fixed rate with them earlier in the year found them ok.

I would say a safe place for your savings, if I could get my cash out of Icesave I would put it in there TBH.

alanq

They had a similar rate for 1 year investments at the end of March / early April.

The only worry I can think of is for Britannia Building Society investors who might exceed the £50k FSCS threshold with their combined investments if the merger goes ahead.

daveoc22

I was about to use Nationwide until I remembered they were taking over the Derbyshire and that would have left me with 'too many eggs in one basket'.

I did a search in the usual places for fixed rate savings and that's where I saw the Co-op. I log onto my Co-Op bank account every day and I've always gone straight past the adverts, otherwise I would have noticed this before.

Anyway, the rate is pretty good and they are 'probably' safe so I think I'll be going to them.

baldbloke_2

In July I also took advantage of the fixed rate bond on offer by the Co-op - with whom I bank - as you say they do not generally compete on interest rates and I was mildly concerned that they have seen the need to do so this year. Nevertheless they appear to be about as sound a bank as one could wish for so the Bond seems a decent purchase.
However I also have a one year bond with the Britannia and suddenly find I will exceed the compensation limit by £10k if the two merge before my Britannia bond matures next June.

A piece of casual googling some time back threw up the FAQs of the Nevada Bank who had just taken over a smaller failed bank in that area of the USA. Interestingly it showed that the separate certificates would exist for fixed-term deposits until they mature - at that time the customer must make a choice.
This sounded so obvious and simple that I assumed we would automatically have the same system. I have been very surprised to see that that is not the case. Savers with Lloyds TSB and HBOS or Abbey/A&L/B&B would be asking the same question I imagine. I fel this is a matter that could and should have been addressed.

zzzLazyDaisy

I'm with the co-op. They have no shareholders, so no sudden drops in share prices causing panic. They have an ethical stance on investing. Their fixed rate savings deals are competitive. And if/when the Britannia merger goes through, they will have high street branches too.

I have a fixed rate deal with them maturing in March, and I'll have no hesitation in tying the money up again with them if the deals are still as good.

nilrem_2

zzzLazyDaisy wrote: »

And if/when the Britannia merger goes through, they will have high street branches too.

That would be very useful IMHO.

dougz_2

A warning, moneyfacts has these listed as having an early access penalty option, but when you read the actual T&C that is only on death.