Co-op bank

Nubbins36

I've just read in the Guardian that the Co-op could be in trouble. I was just about to open an isa with them/Britannia and a savings acc. Should I stay clear? (It's not masses of money!!)
Thanks

dunstonh

As long as you are under the FSCS limit, then its not a problem.

Archi_Bald

Nubbins36 wrote: »

I was just about to open an isa with them/Britannia and a savings acc.

Why would you do this if their interest rates aren't market leading?

nilrem_2

How many people in the UK have actually lost money when a UK bank has got into trouble? Answer None.

IMHO it is perfectly safe to place money with the Co-op, I have savings with Co-op, Smile and Britannia and am not concerned in anyway (except of course the poor interest rates!)

Archi_Bald

nilrem wrote: »

IMHO it is perfectly safe to place money with the Co-op

Save, yes, up to £85K (across Coop, Smile, Britannia) per person is perfectly safe.

Doesn't make it the most sensible place to keep your savings in, though, because you can get lots better interest elsewhere (and equally safe).

planteria

your money would be safe as long as no more than £85k. but the rates and CS from Co-op Bank are not good.

Masomnia

nilrem wrote: »

How many people in the UK have actually lost money when a UK bank has got into trouble? Answer None.

I think some lost out when Southsea Mortgage and Investment Company went down, over the £85k limit anyway. (Clue's in the title really!)

But don't quote me!

In answer to the OP I have a current account with the coop and I don't think there's any reason to worry. They've been told they have to raise some more money under new regulations; they've made plans to do so over the coming months, so it's all good as far as I'm concerned.

nilrem_2

Archi_Bald wrote: »

Doesn't make it the most sensible place to keep your savings in, though, because you can get lots better interest elsewhere (and equally safe).

Which is why in my post I commented

except of course the poor interest rates!

In actual fact though the Britannia are offering quite a decent rate on their fixed rate accounts ATM.

nilrem_2

Masomnia wrote: »

I think some lost out when Southsea Mortgage and Investment Company went down, over the £85k limit anyway. (Clue's in the title really!)

But they were not quite in the same league as Co-op bank, they had one office just over 250 investors and most of us have never heard of them!

IMHO the government will not let any major UK bank or building society go bust with people losing money even those with deposits over £85k, the consequences would be too dire to contemplate.

Obviously if you can it's sensible to stick to the £85K limit that way it would be hassle free in the event of problems.

ColdIron

nilrem wrote: »

IMHO the government will not let any major UK bank or building society go bust with people losing money even those with deposits over £85k, the consequences would be too dire to contemplate.

I'm not sure I agree. I understand the 'kitty' immediately available from the participants of the FSCS is about 4 billion, plenty enough to cover tiddlers going under but completely inadequate for a Barclays or HSBC. Consider also the bank in question would be one of those contributors to that kitty. Of course they'll rescue the bank by buying stock (and all that that entails), but I think anything over £85K for depositors is unrealistic, think back to Cyprus

jaggerc1

I have a S&S isa with Cis, should I be moving it?
Or is that different from the co OP bank?