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

Dr_Cuckoo3

rb10 wrote: »

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

Example here ; http://www.bankofcyprus.co.uk/Campaign/important_information

"You will need to ask all payees to whom you have recently issued a Laiki UK cheque to ensure that cheques are presented for payment (paid in) allowing sufficient time to be cleared by 28 June 2013. After this date, Laiki UK cheques presented for payment will be returned unpaid and will need to be reissued to the payee from your new Bank of Cyprus UK account."

realaledrinker

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!

Yes Fixed Term Deposits such as yours are 100% covered up to £85,000 under the FSCS guarantee.

The radio 5 Live discussion concerned corporate bonds issued by the Britannia when it was a separate entity - these now form part of the Co-op bank's loan capital and are not covered by FSCS.

southcoastsounds

realaledrinker wrote: »

Yes Fixed Term Deposits such as yours are 100% covered up to £85,000 under the FSCS guarantee.

The radio 5 Live discussion concerned corporate bonds issued by the Britannia when it was a separate entity - these now form part of the Co-op bank's loan capital and are not covered by FSCS.

Thanks greatly for the clarification. We small savers can get a bit worried at times. My wife and I both invest in Premium Bonds - very poor benefits but at least safe and fairly get-attable.