MSE News: Co-operative Bank: how safe is it, after Moody's downgrade?

Former_MSE_Helen

"Concerns over the future of the Co-operative Bank have been raised today but savers remain protected up to £85,000..."

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Co-operative Bank: how safe is it, after Moody's downgrade?



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AlanRalph

Disappointing news - I've been with Smile since 2003, after finally losing my patience with Barclay's continuing ineptitude. I don't have a lot of money in there these days - my cash ISA went to M&S a few years ago, and in in the process of transferring to Cheshire BS (Thanks MSE!) - so I'm not too worried. Hopefully the Co-operative can sort out their portfolio and get back on their feet soon.

KaiserBill

Ironic really. I asked them to upgrade my basic account into a full current account. They refused.It seems that they regard ME a poor credit risk.



It now turns out they THEY are actually a worse credit risk than me.

poetrybug

So is this something you need to worry about if you have less than £85,000 savings? I have few savings and an overdraft with Smile but still concerned about possibly being unable to withdraw money if something happened or my direct debits no longer working.

edwara

so if I have money sitting in my overpayment fund against my mortgage with the Co-op should I be moving it? or will it just stay there hmmm? it's under 85,000 I have always been really happy with the co-op their customer service is excellent and our mortgage is a really good deal. fingers crossed its all ok

buzi

the following is a quote by Robert Preston, BBC, "What I think the downgrade highlights... is whether the Co-operative group, with its leading position in supermarkets and funeral homes (for example), is the best owner of a bank, at a time when profit margins in banking are so low, and may remain so”

so not much hope for the new post office bank or what about tesco, m & s, sainsburys...... is bank of dave opened yet

puregeordie

Hi, £85k is safe in a savings account.

What about normal current account holders that get the wages paid into?

I have over £5k in my current account, Cheers.

dazza.mk

buzi wrote: »

so not much hope for the new post office bank or what about tesco, m & s, sainsburys...... is bank of dave opened yet

Tesco/M&S/Sainsburys may not be an appropriate comparison as there banking offerings are integrated with the store. In one of the articles re: Sainsburys buying controlling interest in Sainsbury's bank there was a comment about those who do banking in store typically spend more and are more loyal. Same way they keep Petrol prices low to get people in store.

nilrem_2

puregeordie wrote: »

Hi, £85k is safe in a savings account.

What about normal current account holders that get the wages paid into?

I have over £5k in my current account, Cheers.

It does not matter what sort of account, you are protected upto a max of £85k in an institution.

The risk of anyone losing money with a Co-op account is less than minuscule even with more than £85k invested with them.

Just look at the financial situation RBS were in, much worse than the Co-op yet no savers lost money. People should stop worrying.

puregeordie

Thanks nilrem

jamesd

edwara wrote: »

so if I have money sitting in my overpayment fund against my mortgage with the Co-op should I be moving it? or will it just stay there hmmm? it's under 85,000

Read what the FSCS has to say: http://www.fscs.org.uk/industry/sub-schemes/accepting-deposits/payout-arrangements-from-1-january-2011/ .

Yours appears to be an arrangement where your mortgage balance is reduced, so you may not be able to get that money out again. It isn't strictly lost, since your mortgage balance is lower. Just not available to you any more until you can remortgage.

An offset current account or offset savings account would remain separate and up to £85,000 compensation would be paid. Money above that would be used to reduce the mortgage balance.