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The Financial Services Compensation Scheme

Find out more about The Co-operative Banking Group and The Financial Services Compensation Scheme:

The Co-operative Bank plc

The Co-operative Bank plc is covered by the Financial Services Compensation Scheme (FSCS), which would pay compensation of up to £85,000 to eligible depositors in the event of the Bank becoming insolvent. smile and Britannia are trading names of The Co-operative Bank and, as such, protection provided to depositors by the FSCS is limited to £85,000 for the total amount of combined deposits held with The Co-operative Bank, smile and Britannia.

Certain customers are not covered by the FSCS. The exclusions include large businesses or organisations, large companies, large mutual associations and local authorities: visit www.fscs.org.uk for further details.

What is the maximum amount of compensation I can claim?

In the unlikely event that our company became insolvent, if a customer has deposited money with us in current accounts, deposit accounts or savings accounts, the maximum amount of compensation is £85,000 per customer. This includes the Guaranteed Stock Market Bond.

What about joint accounts?

For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor’s accounts with the Bank, including their share of any joint account, and not to each separate account.

Does the compensation limit apply to each bank account I have with The Co-operative Bank p.l.c.?

No. The limit applies once to all accounts a customer has with The Co-operative Bank, smile and Britannia.

What about the account used for my business?

Small companies are covered by the Financial Services Compensation Scheme. Find out more.

I have savings held in an account with your Guernsey branch. Is my money covered under the FSCS?

Deposits held in our Guernsey branch are offshore, not UK accounts, and are therefore not covered under the FSCS. However the account may be covered by the Guernsey Banking Deposit Guarantee Scheme. Find out more.

Business Banking Customers

The FSCS was set up mainly to assist private individuals, although smaller businesses and, in certain circumstances, larger businesses may be covered.
The deposits of small companies (as defined below) are covered by the Financial Services Compensation Scheme, up to the £85,000 limit. This is the same level of protection that individuals receive.
As an indicative guide, a small company must meet two of the following criteria (as set out in section 382 of the Companies Act 2006):

  • Turnover: not more than £6.5 million
  • Balance sheet total: not more than £3.26 million
  • Total number of employees: not more than 50.

Specific types of depositor that are usually covered:

  • Unincorporated bodies (certain charities, clubs etc): an unincorporated association with net assets not more than £1.4 million
  • Limited companies (this includes Registered Charities): a limited company which falls into the definition of a small company (as above)
  • Sole Traders

As a guide, those not eligible to claim under the scheme include:

  • Large mutual associations: a mutual association or unincorporated body with net assets of more than £1.4 million
  • Large companies
  • Local authorities
  • Collective investment schemes and some types of pension funds
  • Overseas authorised firms and, in certain circumstances, certain types of FSA-authorised firms

Please be aware that the decision on whether any claim is eligible if the bank goes into default ultimately lies with the FSCS.
For details of the extent of cover provided by the FSCS, and of those types of depositor not eligible to claim under the scheme, visit www.FSCS.org.uk or call the FSCS on 0207 741 4100. Find out about our call charges

Co-operative Insurance Society Limited

I have a policy with The Co-operative Insurance, what is the maximum amount covered under the Financial Services Compensation Scheme?

In the unlikely event that our company became insolvent, the total amount usually covered for long-term insurance policies (includes Platinum Bond Plus and Platinum Plus) and pensions, is 90% of the whole claim, without upper limit.

The Co-operative Investments Unit Trusts

What is the maximum amount protected for my unit trust (including stocks and shares ISA) under the Financial Services Compensation Scheme?

Although investments in The Co-operative Investments unit trusts are managed by CIS Unit Managers Ltd (CISUM), the investments are actually held by an independent trustee. This means that in the unlikely event that our company became insolvent; your investments in a CIS unit trust should not be affected.
In rare circumstances, you might have a claim which would not be fully covered by investments in the unit trust, in which case the Scheme would cover up to £50,000 per person.

CIS Policyholder Services Limited (CISPS)

I have an Aviva Investment Bond (arranged by The Co-operative Investments), what is the maximum amount covered for my investment under the Financial Services Compensation Scheme?
The Investment Bond from Aviva is a product which is sold by CISPS but your investment is held by Aviva.
In the unlikely event that Aviva became insolvent, the total amount covered is 90% of the whole claim, without upper limit.

CIS General Insurance Limited

Is there any protection for my house and car insurances?

Compulsory insurance (eg third party motor insurance) is covered for 100% of the claim with no upper limit. Other non-compulsory insurances (eg home insurance) are covered for 90% of the whole claim with no upper limit.