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

1jim

Is this bond linked to stock market in any way or is it just a fixed term saving account?

southcoastsounds

1jim wrote: »

Is this bond linked to stock market in any way or is it just a fixed term saving account?

No, it's just a £10k fixed term savings account not linked to the stock market.

1jim

I can't see why this wouldn't be covered as long as the total savings you have invested with them is below the guarantee level

southcoastsounds

1jim wrote: »

I can't see why this wouldn't be covered as long as the total savings you have invested with them is below the guarantee level

I hope you're right. On Radio 5 this morning (Wake up to Money) an expert said that bonds may not be protected. I'm just hoping that that means big corporate investments rather than my savings!

nilrem_2

southcoastsounds wrote: »

I hope you're right. On Radio 5 this morning (Wake up to Money) an expert said that bonds may not be protected. I'm just hoping that that means big corporate investments rather than my savings!

Stop worrying!
Your savings are safe!:):)

I have considerably more invested in Coop bank than your fixed rate above and I am not in the least bit concerned.

southcoastsounds

nilrem wrote: »

Stop worrying!
Your savings are safe!:):)

Nice to hear it!

Thrugelmir

realaledrinker wrote: »

The Co-op take the first steps to repairing their balance sheet by pulling back on corporate lending, which means over time that they will need to hold proportionately less capital as a buffer against default. And thereby reduce their risk profile. Then they get slagged off for it. :wall:

The Co-Op bank is without doubt at risk. Going to take a lot more than stop new Corporate lending to repair the balance sheet and improve it's capital position.

1jim

Thrugelmir wrote: »

The Co-Op bank is without doubt at risk. Going to take a lot more than stop new Corporate lending to repair the balance sheet and improve it's capital position.

Agreed, and it's not a case of slating them for trying to fix things... It's about putting the pieces of the jigsaw together and then making a decision to stay and see it through or plan a controlled exit

I have no doubt my money is safe with them and it's unlikely they will go "bust" but if they did my money would be safe but it would be a real ball ache to sort out current account affairs.

I went with smile originally as they were ethical, had great customer service and paid decent rates. Ethical...well still better than most, customer service has gone downhill massively over the years, rates well they're non existent. To me this is just a jolt to start looking around to see what's around and plan my exit in a controlled way.

rb10

1jim wrote: »

it would be a real ball ache to sort out current account affairs.

Probably not - all providers now have to have a Recovery and Resolution Plan in place.

The 'Resolution' part of this means they have to have in place a way of transferring customers elsewhere on the point of failure.

So you'd be looked after, and it probably wouldn't be 'a real ball ache'.

I would imagine that the PRA are already talking to Co-op about how this would work, just in case it comes to this.

1jim

rb10 wrote: »

Probably not - all providers now have to have a Recovery and Resolution Plan in place.

The 'Resolution' part of this means they have to have in place a way of transferring customers elsewhere on the point of failure.

So you'd be looked after, and it probably wouldn't be 'a real ball ache'.

I would imagine that the PRA are already talking to Co-op about how this would work, just in case it comes to this.

If it is anything along the same lines as the current account switching teams I think Id be better doing it myself, would rather not be somewhere in the queue waiting to get everything sorted out. It might all be ok, but I'd rather not find out the hard way