Co-op bank

gizz_mo

In terms of Instant Access Savings, Britannia which is part of co-op is offering the market leading rate of 1.75% at the moment. I just opened an account with them as my previous savings rate expires shortly. I haven't moved the money into the Britannia account yet, and I have to say I too was a little put off by the news this week that they are close to going down and may need a bail out. Whilst I understand that the money would be FCSC protected if it was under £85k, if the bank did go under I wouldn't necessarily have instant access to that money would I? Does anyone know how long it takes generally for funds under FCSC to be released? As my primary objective is the best interest rate but with instant access I am feeling a little reluctant now to move my money into this account. Also as it can't be operated online I won't be able to move money out quickly, and I have visions of queues at the branch similar to Northern Rock...
Does anyone know how long it took for savers who were with Northern Rock to get access to their money? Thanks in advance.

opinions4u

gizz_mo wrote: »

I haven't moved the money into the Britannia account yet, and I have to say I too was a little put off by the news this week that they are close to going down and may need a bail out.

There is a difference to "going down" and "needing a bailout". The latter, which is lined up, removes the need for the former.

Whilst I understand that the money would be FCSC protected if it was under £85k, if the bank did go under I wouldn't necessarily have instant access to that money would I? Does anyone know how long it takes generally for funds under FCSC to be released?

They aim to deliver within a week.

Does anyone know how long it took for savers who were with Northern Rock to get access to their money? Thanks in advance.

When they got to the front of the queue they got their money.

bigadaj

I seem to recall it took me several weeks to get the money back when kaupthing went under, though I was pleasantly surprised to receive the money with the relatively high rate of interest up to the point I got paid.

pqrdef

Masomnia wrote: »

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.

That's Nationwide. The Co-op Bank is in a much worse mess. Basically the plan is to default and survive, by cheating the junior bondholders.

Whether they'll get away with it remains to be seen. Last I heard, it was being opposed by the same guy who made Bank of Ireland back down over the Bristol & West pibs.

Even if they do get away with it, they've got nowhere to go from there. Their ancient and minimal IT system puts them in a very poor position for keeping up with the brave new thrusting competitive world.

JohnRo

nilrem wrote: »

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

Clearly false, and far too soon to draw any such conclusion. As it stands savers and pensioners have and continue to lose billions to the continuing banking bailout and financial repression.

Masomnia

JohnRo wrote: »

Clearly false, and far too soon to draw any such conclusion. As it stands savers and pensioners have and continue to lose billions to the continuing banking bailout and financial repression.

Savers have been bailed out to the tune of billions, and continue to get their savings insured to the tune of billions. Yet somehow think they're entitled to better returns for no effort or risk.

Masomnia

pqrdef wrote: »

That's Nationwide. The Co-op Bank is in a much worse mess. Basically the plan is to default and survive, by cheating the junior bondholders.

Whether they'll get away with it remains to be seen. Last I heard, it was being opposed by the same guy who made Bank of Ireland back down over the Bristol & West pibs.

Even if they do get away with it, they've got nowhere to go from there. Their ancient and minimal IT system puts them in a very poor position for keeping up with the brave new thrusting competitive world.

Mm well one man's default is another man's voluntary restructuring Faced with a write down or losing the lot I think bond holders will choose the former; and listing on the stock market should help them raise capital, so I reckon they'll be fine.

calypso_rhapsody

I have a different concern about Brittania which someone may be able to reassure me about. I am not too worried about the risk of failure and my experience of FSCS with Icesave was very good.

But i am concerned that i have just received through the post my application for the instant access saver to sign and return with cheque - on this form is printed for anyone to read my telephone access password. This does not seem very secure to me - ok it should only be seen by Britannia staff unless intercepted in the post but is a lot less secure than what I understand to be the norm. Eg Coventry who also send passwords in the post do it in a way which would not allow just anyone to match the password with the depositor or the account.

Does anyone know if i can change the password once the account is set up? I think i'd be happier with that but am still rather worried at the apparent lax security. It's bad enough it's a post or phone account and not an internet one!

theGrinch

I would be more worried about the co-operatives doubles standard. on the one hand they claim to be ethical yet in practice they are a bunch of greedy sharks happy to mis-sell a vast range of products

antrobus

Nubbins36 wrote: »

I've just read in the Guardian that the Co-op could be in trouble....

I'd be inclined to point out that the Co-Op Bank is in trouble, and has been for some months, and that this has been public knowledge since the Moody's downgrade in May.

Nubbins36 wrote: »

.... 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

As has been pointed out above, so long as you have less than £85k, the existence of the FSCS means that you have should have no concerns. Which is, of course the reason why we have the FSCS, because if it didn't exist all retail depositors with the Co-Op Bank would be following in the footsteps of their wholesale counterparts and withdrawing their money asap.

nilrem wrote: »

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

The correct answer would be; quite a few, including those holders of Britannia and Co-Op PIBS who have already "actually lost money".

pqrdef wrote: »

... The Co-op Bank is in a much worse mess. Basically the plan is to default and survive, by cheating the junior bondholders....

Basically yes. Some kind of bail-in plan is forthcoming. The bondholders either agree to the deal, or the bank goes down.

pqrdef wrote: »

...Even if they do get away with it, they've got nowhere to go from there. ...

It's noticeable that in the recently announced half year results, that the Co-Op Bank is losing money even on its basic business.