Co op bank

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moneybags1957
moneybags1957 Posts: 89 Forumite
in Savings & investments
With all the advertised trouble the Co op bank is in, is it safe to deposit £70k in a basic cash investment account with them? Am I right to assume they are fully covered up to £85K by the FSCS, other accounts I hold are Nat West & Santander so separate.
Can I be assured short of total UK financial meltdown my money is TOTALLY SAFE in the event of the collapse of the Co op Bank, should that happen how long would it take for FSCS to pay out?
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  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    This is on their website:
    Coop_website wrote:
    The Co-operative Bank p.l.c., P.O. Box 101, 1 Balloon Street, Manchester, M60 4EP. Registered in England and Wales No. 990937. The Co-operative Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, subscribes to the Lending Code and the Financial Ombudsman Service, and is licensed by the Office of Fair Trading (No. 006110).

    Next to it is a big FSCS logo.

    And this is what the FSCS website says:
    The FSCS will aim to pay compensation in the majority of cases within seven days of a bank, building society or credit union failing. Any remaining claims, which are likely to be more complex, will be paid within 20 working days.

    MSE article on savings safety: http://www.moneysavingexpert.com/savings/safe-savings
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
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    Can I be assured short of total UK financial meltdown my money is TOTALLY SAFE in the event of the collapse of the Co op Bank
    You'll get your £70k back.

    Whether it will buy much more than a loaf of bread after a "total UK financial meltdown" is another question.
  • ColdIron
    ColdIron Posts: 9,143 Forumite
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    moneybags1957 wrote: »
    With all the advertised trouble the Co op bank is in, is it safe to deposit £70k in a basic cash investment account with them?
    Yes it is
    moneybags1957 wrote: »
    Am I right to assume they are fully covered up to £85K by the FSCS
    Yes you are
    moneybags1957 wrote: »
    Can I be assured short of total UK financial meltdown my money is TOTALLY SAFE in the event of the collapse of the Co op Bank
    You can be assured that your money is totally safe
    moneybags1957 wrote: »
    should that happen how long would it take for FSCS to pay out?

    Quite quickly, perhaps a week
  • planteria
    planteria Posts: 5,321 Forumite
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    £70k would be safe with them, but their rates would have to be good for me to stash money there.
    their CS is dire. nice, but dire.
  • mike88
    mike88 Posts: 573 Forumite
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    planteria wrote: »
    £70k would be safe with them, but their rates would have to be good for me to stash money there.
    their CS is dire. nice, but dire.

    I've had no problems. While their accounts are not outstanding their 1.5% x 4 withdrawals per year account is not bad even though there are probably better deals out there.
    Take my advice at your peril.
  • planteria
    planteria Posts: 5,321 Forumite
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    1.75% Instant Access with Scottish (former Century account)
    1.7% Instant Access with Nationwide (having been a member for 15+ years)
    5% Instant Access with Nationwide FlexDirect (current account)
    3% Instant Access with Santander (current account)
    spring to mind from my own finances..
  • mike88
    mike88 Posts: 573 Forumite
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    planteria wrote: »
    1.75% Instant Access with Scottish (former Century account)
    1.7% Instant Access with Nationwide (having been a member for 15+ years)
    5% Instant Access with Nationwide FlexDirect (current account)
    3% Instant Access with Santander (current account)
    spring to mind from my own finances..

    These accounts are fine for some but if you have large sums of money
    they are not completely suitable. Indeed even with smaller amounts there is a lot of messing around with direct debits, short availability of decent interest rates etc which is fine for some but not for all of us. Actually the more I investigate the COOP account doesn't seem that bad.
    Take my advice at your peril.
  • planteria
    planteria Posts: 5,321 Forumite
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    the first 2 i mentioned are straight Instant Access accounts...suitable for larger investments and with no DDs required, and paying more than The Co-op account.:)
  • mike88
    mike88 Posts: 573 Forumite
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    planteria wrote: »
    the first 2 i mentioned are straight Instant Access accounts...suitable for larger investments and with no DDs required, and paying more than The Co-op account.:)

    Unless I 'm looking in the wrong place (which is highly possible) the first gives 1.25% and the second is a rate for loyalty savers not available to everyone.
    Take my advice at your peril.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    planteria wrote: »
    the first 2 i mentioned are straight Instant Access accounts...suitable for larger investments and with no DDs required, and paying more than The Co-op account.:)

    So what you are saying Planteria is that we should steer clear of the Co-op account for our spare £70k because the rate at Co-Op of only 1.5% (or 1.71% on a 1yr fix) is not good enough, and all we have to do is instead go back in time to 1998 and open an account with Nationwide to qualify for 1.75% as a 15-yr customer today? That sounds easy enough.

    Or alternatively we can go back to when Century existed and open a bonus saver account which was taken over by Scottish and still pays 1.75% to customers who have it but has not been open to new customers for at least the entirety of the last year. Again, a no brainer: let's do that instead of deposit with the Co-op.

    Or, we could jump through hoops to get a tasty promotional rate for 12 months on a new current account at Nationwide that covers the first 2500 of our cash and drops to 1% after a year, and leaves us with 97% of our cash still looking for a home.

    The Santander suggestion for 2/7ths of the money is the only one that is credible - as the rate is meaningfully better than proper savings accounts and it would be worth a couple of hundred quid (gross of tax) to put their first 20k in that and cycle cash through it via standing order for the monthly minimums, rather than have it on a 1-year deposit somewhere. It's probably the MSE thing to do. And if you have a trusted partner you could have a joint account as well as a personal current account and so double the cash going that route.
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