How safe to save with Co-op bank?

nilrem_2

I have a 2yr fixed rate savings bond maturing with the Co-op bank and the rate they offer for renewal seems pretty decent compared to others available ATM. I was about to reinvest for a further 2 years but read a report yesterday that they may well be about to go into administration!

I realise that I would be protected via the FSCS but having endured the problems of being an Icesave saver I am not keen on going through it again although I don't really want to remove my money from the Co-op unless I have to!

I would appreciate any observations and comments about this issue.

Archi_Bald

As you say, you have full FSCS protection. As and if needed, FSCS will pay up a lot quicker than the Iceland saga went since there is no complicated rules involved, and the FSCS have been able to practice their payment procedures quite a lot since the icelandic disaster.

LXdaddy

he report I heard on this morning's Today on Radio 4 was NOT suggesting they would be going into administration. They have found that they need to reserve another £400million to cover mis-selling PPI and errors on treatment of customer morgages.

So they need to raise another £400million from their owners.

Does that mean administration? - I don't think so.

I've been a Coop bank customer for over 45 years and would like to think I'll be with them for the next 45 years (I should live so long:)). Obviously I use a number of other financial institutions too and I am nowhere near the £85,000 FSCS limit for my Coop/Smile/Brittania holdings.

mike88

There is no chance that Administration would be an issue. But in that unlikely event, savers are protected for up to £85000 per person (£170000 for joint savers) by the FSCS. As a former Icesave saver I can confirm that the FSCS dealt with this issue brilliantly. I have just deposited £20000 into my Coop Savings account and am not remotely concerned about safety.

Archi_Bald

As a matter of interest, what exciting savings products did you guys find with the Coop?

mike88

Archi_Bald wrote: »

As a matter of interest, what exciting savings products did you guys find with the Coop?

Nothing exciting....................but what is these days. Account at 1.5% limited to 4 withdrawals per year.

nilrem_2

Archi_Bald wrote: »

As a matter of interest, what exciting savings products did you guys find with the Coop?

Not really exciting but I have a maturing bond and the rate they offer is better than I can find elsewhere.