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MSE News: Co-operative Bank: Savers' cash safe as rescue plan revealed
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Your savings account is unaffected. While it has the word "bond" in the title it is not a real bond. It's merely a savings account.happydays100090 wrote: »co-op bond situation
when everyone is talking about bonds
do they mean the savings product
"fixed rate fixed term bonds" ?
i ask as i have all my savings tied up in a 2 year fixed bond with the co-op
so am i going to get no interest? and given shares ?
and am i going to lose 30% of their value as stated in the guardian article ?
regards0 -
phew thanks for that0
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Rather misleading headline again, shame MSE is going for the dramatic titles.
"Savers cash safe"
When was there any risk to savers cash? Even if there was a risk how many savers have over the £85k that is FSCS protected anyway?
Unfortunately it is such headlines that promote panic should any potential risky events happen - no mention in the headline that the vast majority of savers would be protected regardless of what happened to the Co-op itself.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Rather misleading headline again, shame MSE is going for the dramatic titles.
"Savers cash safe"...
The headline is doubly misleading.
1. As far as most savers are concerned there is (as noted) no threat to their savings anyway
2. Today's announcement doesn't change anything. Nothing is 'safe'. There is no plan. The Co-op have merely said that there will be one. In October apparently.0 -
MoneySaverLog wrote: »I would not want to be holding any of their James Bonds today
Because you would have lost most of your moneypenny?0 -
It is also worth remembering that with the Co-Op shareholders are not like those in Banks like Lloyds or Natwest. They are anyone who has financial products with the Co-Op who then joins as a member & gets a reward card.
Co-Op shareholders get a divi based on their financial activities within the financial year. It is down to the Co-Op to decide how much each 'divi-point' is worth, so they could say 'no payout this year' and save several £million that way if they so wished.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
happydays100090 wrote: »i ask as i have all my savings tied up in a 2 year fixed bond with the co-op
The word "bond" is heavily overloaded.
Your money is almost certainly in a savings account that is unaffected and that benefits from £85k protection. If you have less that £85k in there (you said "all my savings" so who knows) then you're protected anyway, if you have more than this, then start splitting it into <£85k pots per banking licence.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
It is also worth remembering that with the Co-Op shareholders are not like those in Banks like Lloyds or Natwest. They are anyone who has financial products with the Co-Op who then joins as a member & gets a reward card.
A common misconception. The Co-Op Bank is a plc just like Lloyds or Natwest. It's just so happens it only has one shareholder, the Co-Op Group. Or at present it only has one shareholder....Co-Op shareholders get a divi based on their financial activities within the financial year. It is down to the Co-Op to decide how much each 'divi-point' is worth, so they could say 'no payout this year' and save several £million that way if they so wished.
They halved the divi last year. Not paying one would bring in a few quid. But not £1.5 bn.0 -
You could frame them and hang them in the loo. Or just hang them in the loo without a frame.chickenandegg wrote: »What will happen to the bonds of those holders who will choose not to accept that offer? Any ideas?
Next, the FCA calls a mis-selling scandal because people were sold junk bonds without being told they were junk bonds, inappropriate for their risk profile, etc.
Then we start getting phone calls from Co-op pibs mis-selling claim firms.
Next, the Co-op pibs mis-selling claim services mis-selling scandal."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
Of course, when they get a quote, they'll be able to start dumping shares in the market. Without the potential embarrassment of trying to find a buyer or do an IPO. They might eventually get back a good chunk of the £500m they're putting in.It's just so happens it only has one shareholder, the Co-Op Group. Or at present it only has one shareholder."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0
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