Co-op bonus for Britannia members

Liloly

I have been a Britannia member for many years to the extent that I qualified for the maximum bonus under their old scheme as a saver. Not a lot with just over 20k in fixed rates/isa but worth having in these days of low interest rates.

At the weekend I had an email from the Co-op to say that I did not qualify for the half yearly bonus. Upon querying this things like fixed term bonds and isas are excluded from points for the bonus scheme with the co-op. Therefore in future I will get NOTHING.

Seems we've been sold a pup here as I will not be the only one.
Its fair to say that had that been pointed out to me I would not have voted for the merger.
Luckily the majority of my fixed rates matures in March so I will be moving it elsewhere.
I am very angry over this so beware Britannia members waiting for a bonus - you may not get one ever again.

alanq

If you had read the paperwork that you were sent with the takeover voting papers you would have known. I, and no doubt others, also mentioned it on these forums.

Milarky

I was aware of this - but only through looking up the information post merger. I got a Britannia 5% 3 yr bond last December. I think they can justify the restriction on a fixed rate because the return is guaranteed - so there is no 'risk' taken by the investor. Not so in the case of (numpty) variable rates.

Let's face it, the concept of a dividend (something non-guaranteed to make the directors appear either 'smart' or 'benevolent' after the event) is a distraction for most customers these days. It's best not to encourage them by signing up to make-work schemes like this.

alanq

"Points are not awarded on:...
Fixed term deposits and fixed rate ISAs as profit is returned through a preferential interest rate."
http://www.co-operative.coop/terms/membershiptermsandconditions/#2_5

Movies_in_Running

I got £3 in vouchers and I don't even have a Brittania account.

apt

We were certainly informed at the time. Britannia also reduced the bonus rate in the last couple of years before the merger so it wasn't a major consideration anyway.

miller

I am a Britannia mortgage holder and got nothing.

As far as I can see this is an error.

Toiletduck

miller wrote: »

I am a Britannia mortgage holder and got nothing.

As far as I can see this is an error.

Hi,

I have a Britannia mortgage with an outstanding balance of £80k. I have been a member for over ten years and so I was on the top level of payout for the old scheme. I cant remember exactly what I got last year but it was a cheque in the £60-£80 region. Ive just received some Coop store vouchers for £10, I think the pay out is for the half year only but this is quite poor compared to the old scheme. Very dissapointing.

Andy

miller

Toiletduck wrote: »

Ive just received some Coop store vouchers for £10, I think the pay out is for the half year only but this is quite poor compared to the old scheme. Very dissapointing.

I think the vouchers can be exchanged for cash at a co-op store. If you log on to your membership account you can change the preferences to cash and specify an account for BACS transfer.

miller

Starting to lose my cool a bit with their call centre. They raised a ticket over 10 days ago, didn't bother to phone me back and said I have an "affinity mortgage" which doesn't qualify.

Checked with Britannia and they are certain it is not an affinity mortgage, but I did take up an offer of a new fixed rate 18 months ago known as a "blend and extend".

It smells like an IT error.

Phoned the co-op call centre and they asked if I wanted to raise a ticket. Not very impressed and was promised a call back which didn't materialise.

Stuart_W

Toiletduck wrote: »

Hi,

I have a Britannia mortgage with an outstanding balance of £80k. I have been a member for over ten years and so I was on the top level of payout for the old scheme. I cant remember exactly what I got last year but it was a cheque in the £60-£80 region. Ive just received some Coop store vouchers for £10, I think the pay out is for the half year only but this is quite poor compared to the old scheme. Very dissapointing.

Andy

The payment just received in an interim half-year payment - based on 1p per point for January-June 2010.

The board of the Co-operative Group may decide (as they have done for the past few years) to pay a dividend higher than 1p per point.

Therefore, a half year payout is not likely to be half the amount you receive for the year.

So if you got £10 now from Britannia points and the board approve dividend of 2p per point for 2010 (which is what 2009 payout was), in June 2011 you will get £30 if the value of your Britannia product stays the same.

1,000 Points earned Jan-Jun 2010
1,000 Points earned Jul-Dec 2010
Total Points in 2010: 2,000
Board approved value of points in 2010: 2p each
Total value: 2,000 x 2p = £40.00
Already paid in December 2010 = £10.00
Amount due in June 2011 = £30.00

The system would be much simpler with a single dividend payout in June for the previous year. Anglia and East of England co-operative societies pay out once a year, once the dividend amount is decided by the board, which makes things much more straight forward.

2008 saw a 2.67p per point payout. Who knows, 2010 could be higher.