Why save with the Co-op ?

bullinn1

Hi chaps .... I have been a loyal co-op customer for some while and have always been pleased with their ethical approach and the fact that they have no 'shareholders' to keep happy but the interest rates on their privilege saver account is .75% and ISA .5% - I have spoken to them about this and all they would say was that they are " ... a cautious bank ... " and that they are " ... still attracting savers so why increase the rates ....". Who would save with them when it's not difficult to get such better rates from places like Tescos ? Am I missing something ? Thanks to anyone for pointing me in the right direction .... Roger

Lokolo

Because people cannot be bothered to look around for better rates so just leave the money where it is.

If people start taking money out and putting it in higher rates, they would increase the rates to attract the money back.

cocktail

i would move my money mate. remember this is MSE

jack_spratt_2

No one is forcing you to save with them ! do what any sensible person would do and look round for a better rate !!
It could be worse by the way you could be with Nationwide

Stuart_W

Lokolo wrote: »

Because people cannot be bothered to look around for better rates so just leave the money where it is.

This is not entirely the case. Many people do specificly choose The Co-Op for ethical reasons. Significantly better returns are available elsewhere and as far as I'm aware usually always have been (although in the very early days of smile, market leading rates were offered).

Similarly, many people actually choose to shop at the Co-Op even though it costs more. Asda and Morrisons are reporting decreasing sales of fairtrade ranges due to the credit crunch - the Co-Op are reporting an increase in the sales of such ranges.

There is a different breed of shopper and bank customer out there - where price and rates do not actually come first - but possibly not the sort of breed that can expect to feature on MSE.

Never thought I'd see the day where the DIVIDEND I earn from the Co-op exceeds the INTEREST I earn from them - but it looks very likely this year!

rb10

rogertb wrote: »

Hi chaps .... I have been a loyal co-op customer for some while and have always been pleased with their ethical approach and the fact that they have no 'shareholders' to keep happy but the interest rates on their privilege saver account is .75% and ISA .5% - I have spoken to them about this and all they would say was that they are " ... a cautious bank ... " and that they are " ... still attracting savers so why increase the rates ....". Who would save with them when it's not difficult to get such better rates from places like Tescos ? Am I missing something ? Thanks to anyone for pointing me in the right direction .... Roger

The same question could probably be asked replacing 'Co-op' with the name of any of the high street banks (probably with the exception of Abbey & Halifax).

realaledrinker

OK this link relates to current accounts, but it appears that large numbers are switching to the Co-op bank for security and ethical reasons and the fact that they are not subject to the vagaries of the stock exchange - interest rates being of secondary consideration.

http://www.cfs.co.uk/servlet/Satellite?c=Page&cid=1231227546245&pagename=Corp/Page/tplCorp&currart=1239171658790&currmth=4

asbokid

Stuart_W wrote: »

This is not entirely the case. Many people do specificly choose The Co-Op for ethical reasons.

Most of the Co-Op's ethical commitments are either faddish or downright fraudulent.

Originally, we chose to bank with the Co-Op because it offered a far superior internet banking service that its rivals.

However, internet banking is now ubiquitous, so while inertia accounts in a large part for our continued custom, I do sense that the Co-Op provides a better working environment for their staff than many of the other banks.

That's about the only thing "ethical" I would applaud in the Co-Op.

baby_boomer

They may not have shareholders to look after, but there is a temptation for mutuals to be lazy and/or pander to interested "stakeholders" like employees or exploit the inertia of people who like to think they are being "ethical".

A true market place benefits us all because it gaurds against such tendencies.We would be wise to use it.

Plus all banks - mutual or Plc - have are in the process of capital rebuilding or making provisions for tough times ahead, ["cautious bank" ] which come from making profits from their customers.

Re the merger - Britannia's savings rates weren't good but the Co-op's are dire. Let's hope there's a levelling up rather than a levelling down.

jack_spratt_2

baby_boomer wrote: »

They may not have shareholders to look after, but there is a temptation for mutuals to be lazy and/or pander to interested "stakeholders" like employees or exploit the inertia of people who like to think they are being "ethical".

And what is the matter with treating employees with respect and looking after there interests .
A happy workforce is a productive workforce

I am sure there is no need to exploit any inertia of any person no one says you have have to invest with any company you do not wish ! you know if you invest with the Co-op you will not get the best rate !! they are a cautious company and not being a PLC they feel they do not have to take risks!!
Its your choice at the end of the day




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ben37564

Theres a lot of variation between providers ISA rates. It's worth shopping around as the difference can sometimes be quite significant. I used to work in a bank and would see a lot of people swapping ISA providers every year for the sake of a couple hundredths of a percent. We used to call them 'rate tarts' but to be honest I can now understand why when I see some of the differences.