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Co-op Bank safe?

With all this uncertainty over the banks and our deposits with them, and I know about the Government's £4bn package yesterday, how safe is the Co-op/Smile bank?

Most other banks have had runs on their shares and in the case of Landsbanki there were reports in the press last week; but nothing about the Co-op Bank. And they're not one of the 8 that have seeked support either.

Similarly with Building Societies (except that Nationwide is one of the

8).

What does the Co-op do with our deposits, if they lend it to other institutions on the market then they could be just at risk as the others; but we hear nothing.

Any comments?

David

Reply to
David Floyd
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If you take a look at

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they have a table of all banks operating in the UK with their credit rating and the protection scheme they operate under. All deposits with the Co-op are protected up to £50k but if you have more than that in there then I'd spread it around a bit. Who knows

*which* bank is wholly safe today?!!

Ret.

Reply to
Ret.

In message of Thu, 9 Oct 2008, Ret. writes

Well I'm well aware of that, and I'm trying to avoid, if at all possible, having to make a time consuming claim under the compensation scheme - it's going to be months before we get any money from Icesave.

thisismoney.co.uk says nothing about Co-op/Smile (which is a mutual company).

And Northern Rock is not now taking new customers. NS&I rates are not very attractive.

I already run my current account with Smile, but I can't find any ratings for them should I decide to put my savings with them.

David

Reply to
David Floyd

Co-op is a mutually owned bank, so doesn't have shares.

They lend a lot of money to the labour party, and they finance a lot of shared ownership property schemes. You can judge for your self how safe you think that is, or how much more/less likely the government is likely to bail them out as a result.

Reply to
Jonathan Bryce

A lot safer than the American sub prime market and Iceland!!

DF

Reply to
David Floyd

They also offer dismal interest rates which in the current climate is strangely reassuring. I have a substantial funds in a smile cash ISA and a smile saving account which I intended to move elsewhere before this banking debacle started. It can sit there now.

Reply to
JohnR

I have invested with the Co-op for some time, thanks to odd historical issues. They have never paid top returns on investment - and I moved out my cash ISA to Yorkshire Building Society about a year ago (they also don't offer the top rate, but are in the top ten over some years). I think you'll find that your money is safe with the Co-op. They are not risk takers - but as a consequence, you will not get the best rates. These days, I'd say that they are a safe place to be. However... in the next month or so... who knows!

John

Reply to
John E

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