Am I safe with the Co-Op bank?

BC1973

Hi all. The recent news about the Co-Op has gotten me a little tense. Pretty much all of our accounts and insurance services are with the Co_op or Smile so I'm curious to know if our products & money are safe.

What's the deal with this kind of thing? I know the Govt covers savings and the like but those we don't have. We do have about 5 current accounts between myself, my wife and the kids, home, car & travel insurance though.

Any help would be appreciated.

pmduk

The Financial Services Compensation Scheme covers up to £85,000. This includes not just savings but any money held in the bank.

dzug1

The current accounts are covered by the government - I doubt you are anywhere approaching the limit


Insurance - check the deals next time you renew. You should be doing this anyway


Bottom line - no need to panic.

butterflymum

Point to condsider:

even if your bank (or any bank), were not having/perceived to be having 'difficulties' of any nature, it has already become very clear over recent times that in this technological age, computer systems of banks are not without their glitches once in a while. If you rely on one bank, or banking group with linked systems, for all your financial dealings, what do you do if they have a major system fault/glitch and are 'down' for a period of time? Having a spread of financial options (eg a current account and debit card with one or two other banks), could ease the situation for you and at least give you access to some funds until the other bank is fully operational again.

Old motto...don't keep all your eggs in one basket.

ColdIron

Your cash with Co-op bank is safe enough and the insurance is not held by them but with another company as part of the wider Co-op Group

I'd still review your relationship with the bank though. Are they offering the best banking products for you? Best rates, best service? If your reason for joining them was their supposed 'ethical' stance that ship has sunk. If you want a well run bank forget the Co-op, for all we know they'll be parcelled off to other banks with a few years

Alter_ego

pmduk wrote: »

The Financial Services Compensation Scheme covers up to £85,000. This includes not just savings but any money held in the bank.

Of course, but if experience in Icesave is anything to go by, you would lose immediate access to your cash, and have to apply for it's return. That is if there is a catastrophic crash.

robatwork

It's safe.

But if you thought they were ethical then the fact that some of their profits went up the nose of the boss......should tell you there isn't an "ethical" bank.

Choose the bank that costs you the least.

antrobus

Alter_ego wrote: »

Of course, but if experience in Icesave is anything to go by, you would lose immediate access to your cash, and have to apply for it's return. That is if there is a catastrophic crash.

The experience in Icesave is not "anything to go by". Icesave was covered by the Icelandic compensation scheme; the Co-Op Bank would be covered by the UK FSCS.

ColdIron wrote: »

Your cash with Co-op bank is safe enough and the insurance is not held by them but with another company as part of the wider Co-op Group....

I'm not so certain that's necessarily any reassurance.

BC1973 wrote: »

Hi all. The recent news about the Co-Op has gotten me a little tense........

Presumably you mean the recent plans announced by the Co-Op Bank to raise another £400m's worth of capital? I'd actually see this as a good thing. The plan has received the support of the existing shareholders.

http://www.bbc.co.uk/news/business-27337541

bryanb

antrobus wrote: »

The experience in Icesave is not "anything to go by". Icesave was covered by the Icelandic compensation scheme; the Co-Op Bank would be covered by the UK FSCS.]

I actually banked with Icesave, I can assure you I had to apply via FSCS to get access to my money. If you remember, George Brown decided that FSCS would cover UK Icesave customers. That may have taken longer, but any new bank crash would follow a similar procedure.

Organist

Don't think George Brown was around when Icesave was set up. More likely to be his grandson Gordon :rotfl:

Thrugelmir

Shortly to be renamed the O-OP's bank in recognition of their fall from grace.

As others have said ethics mean little given that they are in bed with hedge funds.