The Financial Services Compensation Scheme

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

The Co-operative Bank p.l.c.

What is the maximum amount of compensation I can claim from The Co-operative Bank p.l.c.?

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 £50,000 per customer. This includes the Guaranteed Stock Market Bond.

What about joint accounts?

The compensation limits are per person (per firm and type of claim), therefore each customer can claim up to the maximum limit. This means that a couple holding a joint account could claim up to £100,000 (£50,000 each).

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

No. The limit applies once to all products of the same type – for example, all bank accounts – a person has with the same bank.

What is the position for customers who have accounts with both The Co-operative Bank p.l.c. and smile?

smile is part of The Co-operative Bank p.l.c.. Therefore if a customer has accounts with smile and The Co-operative Bank p.l.c., the £50,000 applies once overall to all the accounts.

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

Our understanding is that deposits held in our Guernsey branch are not covered under the UK's FSCS scheme.

Business Banking Customers

Small companies (as defined below) are covered by the Financial Services Compensation Scheme for Deposits. The maximum level of compensation is 100% of the first £50,000 deposited with the bank. This is the same level of protection that individuals receive.

This is the FSCS definition of a small company:
Smaller company: (as an indicative guide only) must meet two of the following criteria (as set out in section 247 of the Companies Act 1985):

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 our business base that are 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
  • Small Partnerships: a partnership with net assets not more than £1.4 million

What is not covered:

  • Provincial, regional, local and municipal authorities (councils etc)
  • Governments, and central administrative authorities
  • Large mutual associations: a mutual association or unincorporated body with net assets of more than £1.4 million
  • Large Partnerships: a partnership with net assets of more than £1.4 million

Please be aware that the decision on whether any claim is eligible if the bank goes into default ultimately lies with the FSCS.

We can only provide our interpretation of the information they provide. If a customer wants to be sure, they should contact the FSCS directly via their website www.fscs.org.uk or on 0207 892 7300.

Co-operative Insurance Society Limited (CIS)

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 unlimited, however compensation is restricted to 100% of the first £2,000, then 90% of the remainder.

CIS Unit Trusts

What is the maximum amount protected for my unit trust under the Financial Services Compensation Scheme?

Although investments in CIS 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 £48,000 per person – this means 100% of the first £30,000 of your investment is protected, plus 90% of the next £20,000.

CIS Policyholder Services Limited (CISPS)

(Includes The Co-operative Investments ISAs and the Norwich Union Investment Bond)

I have a The Co-operative Investments ISA, what is the maximum amount covered for my investment under the Financial Services Compensation Scheme?
Although the The Co-operative Investments ISA is managed by CISPS, your investments are held by other companies in The Co-operative Financial Services group. Any claim you may have against the Scheme would usually be governed by the rules applying to those companies' products:

I have a Norwich Union Investment Bond (arranged by The Co-operative Investments), what is the maximum amount covered for my investment under the Financial Services Compensation Scheme?

The Norwich Union Investment Bond is a product which is sold by CISPS but your inves`tment is held by Norwich Union.

In the unlikely event that Norwich Union became insolvent, the total amount covered is unlimited, however compensation is restricted to 100% of the first £2,000, then 90% of the remainder.