The Co-op Bank

romneymarshan

Did I imagine it or is The Co-op Bank in trouble? The last I heard, The Bank of England were deciding on a course of action.
My problem is that I have £14k (and falling) above the safety level, but am about to pay out £61k on a TINY studio flat within the next 10 weeks.
Should I sit tight and hope for the best, or should I transfer my £30k of Britannia ISAs to another bank?
I am a 61 yr old woman with no job, no benefits and no pension until 66, and feeling a bit vulnerable:eek:

Chapuys

romneymarshan wrote: »

Did I imagine it or is The Co-op Bank in trouble? The last I heard, The Bank of England were deciding on a course of action.
My problem is that I have £14k (and falling) above the safety level, but am about to pay out £61k on a TINY studio flat within the next 10 weeks.
Should I sit tight and hope for the best, or should I transfer my £30k of Britannia ISAs to another bank?
I am a 61 yr old woman with no job, no benefits and no pension until 66, and feeling a bit vulnerable:eek:

The Co-op Bank put itself up for sale in February after saying it was struggling to earn enough money to mend its finances from its previous crisis in 2013/14. The Bank of England, in March, placed the Co-op Bank under "intensive supervision" so the Bank of England is monitoring them very closely. If things to bad, there is a contingency plan to ensure its orderly failure. Co-op Bank customers will be protected whatever happens to the bank.

You will be protected for 100% of £85,000 you have with the Co-op bank. However from 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank if it collapses. Payments in connection with the following could be categorised as temporary high balances:

Sums paid to the depositor in respect of:

• Real ettate transactions (property purchase, sale proceeds, equity release) relating to a depositor's main or only residence
• Benefits payable under an insurance policy
• Personal injury compensation (unlimited amount)
• Disability or incapacity (state benefits)
• Claim for compensation for wrongful conviction
• Claim for compensation for unfair dismissal
• Redundancy (voluntary or compulsory)
• Marriage or civil partnership
• Divorce or dissolution of their civil partnership
• Benefits payable on retirement
• Benefits payable on death
• A claim for compensation in respect of a person’s death
• Inheritance
• Proceeds of a deceased’s estate held by their Personal Representative

Note: Deposits over £85,000 are protected up to six months from when the amount was first credited or from the moment a qualifying deposit became legally transferrable.

Overall I think you should be fine. However if you are still worried, transfer it to NS&I as they are 100% on anything unless the government finances go bankrupt.

colsten

Reduce your balance in the COOP straight away to below £85,000.

The temporary high balance protection mentioned in the earlier post does not apply to you unless you received a large sum of money in the given categories in the last 6 months.

PeacefulWaters

colsten wrote: »

Reduce your balance in the COOP straight away to below £85,000.

It is as simple as this.