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

jsg2

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 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

We had a letter through a couple of months ago from the co-op about this very matter - it basically said that in the unlikely event that it were to go insolvent, you wouldn't be able to access any funds in an overpayment fund. However, you would not lose money, as the overpayments would have reduced your mortgage.

Petlamb

I think the really important thing in all of this is for people to have learned lessons from previous banking failures.

We don't need to withdraw our funds, we won't lose a penny even if they were (and this is unlikely) to go under. And I say this as someone with the only cash they have in the world, banked with the co-op.

Just evaluate your £85k protection (do you have more than that with one institution? If so, consider spreading for fuller protection) and job's a good'un.

badger09

Vampiric_Addiction wrote: »

I think the really important thing in all of this is for people to have learned lessons from previous banking failures.

We don't need to withdraw our funds, we won't lose a penny even if they were (and this is unlikely) to go under. And I say this as someone with the only cash they have in the world, banked with the co-op.

Just evaluate your £85k protection (do you have more than that with one institution? If so, consider spreading for fuller protection) and job's a good'un.

I have had my main (and until recent years, my only) current account with Co-operative for over 50 years and am generally a satisfied, rather than lazy , customer.

I have no wish to spread alarm over this, or any other bank, but I would be very uncomfortable these days if I had all my 'only cash in the world' deposited in one bank. Given the problems experienced when computer systems suffer glitches - surely its prudent to have at least one other accessible source of cash? :cool:

[Deleted User]

poetrybug wrote: »

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.

I would be more than tempted to move some of my money if i had a co-op account,anything over 85k for starters then probably at least half of anything under 85k

huw01

They always did bang on about their ethical status. Wonder if they will call in the massive overdraft in from the labour party ? :A

patanne

Well maybe I'm cynical, but which bank didn't call in the Labour parties overdraft when the Conservatives were in power? Which bank didn't take on part of Lloyds after all, when said Conservatives were in power. How many of the Conservative MPs have ties to banks. Oh guess what they have been downgraded. Why am I not shocked! I'd have been more shocked if they hadn't been.

Yolina

badger09 wrote: »

surely its prudent to have at least one other accessible source of cash? :cool:

I always keep some cash at home Not that I'm overly concerned about my current account with Smile, but it's always made sense to me to have something at hand.

Just my luck that I received a reasonable sum into my account a few days ago, so transferred that to a savings account somewhere else (which I would have done anyway - I don't keep more in my current a/c than I need to - but thought that I might as well not delay :rotfl:)

liz545

I have my current account with Smile, and I've been a satisfied customer for years. My savings aren't with Smile, but this news does worry me - if they get into further difficulty, will I be able to withdraw money, and what will happen to my direct debits? I don't want to move banks, but I'm wondering if it's worth opening a basic account somewhere else so I'm able to move my salary after it's paid.

callum9999

huw01 wrote: »

They always did bang on about their ethical status. Wonder if they will call in the massive overdraft in from the labour party ? :A

While I don't doubt the CO-OP aren't as ethical as they like to claim they are, how is that remotely relevant to their credit rating? In fact, what with big money being available in unethical sectors like arms manufacturing etc., it makes sense that having an ethical investment policy would make it more likely for them to get in financial trouble.

EmehEm2005

Quote: "The news nevertheless strengthens the message we've always conveyed, that it's important to know how your savings are protected, regardless of which bank, building society or credit union they are held in."
Guy Anker News Editor MSE 10 May 2013

Not only do I have a current account with smile - the internet arm of the Co-op - but I also have savings with my home-city's credit union - whose bank is also the Co-op!
Oops!