Anyone else save in a Co-op share account?

Stuart_W

Just wondered if anyone else uses a Co-op Share account to hold cash savings rather than a bank or building society account.

They're probably not well known now, it is nothing to do with the Co-op Bank, but Co-op share accounts used to be quite common in the middle of last century, with many families knowing by heart their share number to quote at their local co-op and dividend got paid into a share account which could be saved or withdrawn. "The divi" could often pay for christmas. Most dividend schemes now operate independently of the share account, and the biggest food co-op, Co-op Group,  haven't actually paid dividend for many years now and use a seperate points-like system to accure money off, all memebers just have a nominal share account containing £1 (a technicality of membership of a co-operative) which they're probably even unaware of as the £1 is often paid from the first £1 of dividend or cashback earned.

They do come with the absolutely massive warning of not being FSCS protected and technically risk capital, which is enough to put most people off but my local co-op (Central England Co-op) seem to be on a firm footing (have exited all non-profitable divisions) and I'm quite merrily earning 2% interest and can withdraw whenever I want. Given the abysmal offerings elsewhere it's staying put in there.

Maybe this is considered high risk for low return, I don't know, but it has worked for me, and just wondered if anyone else still has one of these.

Daliah

Having been able to resort to FSCS on two separate occasions, I am not really tempted by accounts not protected by FSCS. If I want to take some risks, I put the money into an S&S ISA, SIPP or even GIA, where I am likely to get a return of more than 2%. You can also get 2% FSCS protected in Virgin Money, on up to £1,000 per account. There are now also a couple of 2% Regular Savers kicking about, and some people managed to secure 3%, and even a 5%, Regular Savers.