Co Op Bank

[BolshieBastard]

Hmmmm. Being in the FSB, I get free business banking (with a small annual loyalty bonus every year) via the Co Op and, despite the tulipe GUI of their internet system (I could design something better looking and more intuitive to use!), have found the service to be problem free.

But, the latest news after their rating was downgraded to 'junk,' makes me wonder whether I should ditch them altogether.

Im in two minds to close my ltd co seeing as the market is tulipe and concentrate on looking for a permie position. Doing this kind of pre empts the decision to withdraw all the remaining funds from the bank account.

I've checked with the FSA or whatever its called now and limited co business bank accounts are guaranteed upto 50k (with one or two other conditions which are met) if they did go paps up.

Anyone else with Co Op Business banking? Are you considering ditching them or just sit tight?

[SueEllen]

Read in the paper yesterday that they aren't giving out business loans.

BTW The FSCS should pay out up to 85k for deposits for small businesses.

[jamesbrown]

Yep, as SueEllen says the FSCS covers small businesses up to 85k (IIRC, defined as fewer than 50 employees and an annual turnover below 1m).

That they've pulled out of business loans just reinforces what we already know about their poor capital position and that they want to get out of the business banking sector, although it's likely to go beyond that eventually. If it were me, I probably would be looking elsewhere, although I don't think there's any immediate risk.

[BolshieBastard]

Yep, as SueEllen says the FSCS covers small businesses up to 85k (IIRC, defined as fewer than 50 employees and an annual turnover below 1m).

That they've pulled out of business loans just reinforces what we already know about their poor capital position and that they want to get out of the business banking sector, although it's likely to go beyond that eventually. If it were me, I probably would be looking elsewhere, although I don't think there's any immediate risk.

Ah, thanks for that. I thought the limit was 50k. Yes, I too gather the number of employees (max of 50) and turnover (under £6.5m, I think).

[Wanderer]

Check out Cater Allen. Free banking, and backed by Santander UK plc who are supposedly quite credit worthy

[centurian]

Reduce your balance to just under £85K. If you move the lot out, you will just exacerbate their situation even further, helping to trigger another banking crisis, which won't help the contract market either.

[SueEllen]

Reduce your balance to just under £85K. If you move the lot out, you will just exacerbate their situation even further, helping to trigger another banking crisis, which won't help the contract market either.

Why would one person moving his money from one UK bank to another cause a bank crisis? Remember he may be closing his company down and so co-op won't have that account anyway.

[BolshieBastard]

Reduce your balance to just under £85K. If you move the lot out, you will just exacerbate their situation even further, helping to trigger another banking crisis, which won't help the contract market either.

Oh its well under that