News out this week that Co-operative Bank has put itself up for sale, following speculation about its future, may have some of you concerned.
Whilst we can't comment on the stability of Co-op Bank or its future, the first and most obvious step is to ensure, where possible, that funds held with the bank are within the limits set out by the Financial Services Compensation Scheme (FSCS), just for peace of mind. Whilst it’s always worrying when a bank is put up for sale, the good news is that deposits of up to £85,000 are secure under protection from the FSCS.
If you currently hold more than £85,000 across the Co-op, Britannia and Smile brands, then reducing your holdings seems sensible. And given that all three brands don't offer particularly competitive rates at the moment anyway, this could be the incentive you need to switch to improve your interest elsewhere.
Assuming a sale is successful, what happens next depends on the buyer. The devil will undoubtedly be in the detail however we'd expect that disruption to savers will be minimal assuming they find a buyer.
If you have any questions or concerns or would like to discuss alternative homes for your cash savings, please get in touch. We’re here to help.