co-op - is my money safe

david_baker_3

i have accounts with Coop. also have cash ISAs with Britannia and Axa (share ISAs). total is over the £85K - so should I move money to another saver not linked to coop to ensure all money is govt protected should co-op go under? I assume co-op and britannia count as one financial institution. what about Axa. best to move cash ISAs or savings accounts? ta. DB

jamesd

For cash ISAs and cash savings accounts just arrange not to have more than £85k in all of the businesses in the group combined. Include cash in any S&S ISA or pension pots with them in this total.

For investments within a S&S ISA or pension, they will normally be held in trust by a different group from Co-op and hence not affected. For an extra measure of safety if you have any funds that are named with Co-op in the name you might consider them to be at risk.

talexuser

I would carefully follow the 85k limit (including any of this years interest) for cash.

First they pull out of the Lloyds branches sale. Then there are rumours (denied) of liquidity problems. Then the CEO resigns. After Adam Applegarth on TV straight faced telling us there is no need to worry about Northern Rock I would take no risks.

Glen_Clark

I've been looking at Building Society Credit Ratings. They all seem to have been downgraded over the last few years. Ratings Agencies are concerned about Britains House Price Bubble.I think they have under estimated the determination of the British Government to keep house prices high.
The risk is in falling house prices causing negative equity. Not much chance of that with Osborne giving interest free loans on £600k sub prime mortgages to pump up house prices - over 10% in the last year.
So unless we see a run (which could finish any bank) I am sure a building society collapse would be preceded by a substantial fall in house prices, giving you time to get out first.

theGrinch

I would take no chances and make sure you stay below the 85k limit for compensation, particularly after the recent events of downgrades, resignations, bad debts, deal collapses and now co-op banking sell off. Its worrying if confidence starts to ebb away.

Customers of Smile Bank should also take an interest.

Lakeuk

If you have cash in the following banks then just make sure you stay under £85k across all 3 - I don't think there is any risk - they have a few ways to tap for cash if needed, I have a current account with one of them and the only thing I'm doing to making a note of what bills etc.. use this account so I have a plan B available

Britannia
Smile
Co-operative Bank

By the way, AXA is not part of the Co-op group, they're a global group in themselves

bulccp05laer

Is your currency safe anywhere where there is counter-part risk?

Only safe option is bullion in your possession.

jamesd

Bullion in your possession isn't safe. It is vulnerable to theft and loss as well as the usual risks that come with owning a highly volatile metal. Banks are a good deal safer overall.