A new campaign has been launched today called Move Your Money.
The logic is simple: if you don't like the behaviour of the bank you're with move you money somewhere else.
I am doing just that, and explain why, here (and apologies for quality - made in a hurry!):
If you agree, please move your money.
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As asupportive comment – I moved to the Co-op Bank for much these reasons some years ago. Have found it a perfectly competent straightforward full-function High St bank, but a mutual that feels like it and with no mickey mouse ‘investment’ division to endanger its customers. Recommended.
I’m in the process of moving to Co-op Bank and will move my energy utility to Coopertave Energy as soon as I can.
Why stick with grotesque banks and energy utilities when you can use a socially responsible alternative?
Please also consider Moving Your Money to your Local Credit Unions.
The credit unions have taken an important next step. Credit unions in the UK have been stunted by poorly thought through legislation but this has changed giving them more flexibility and extended use. They will not only give personal accounts but will be able in a limited way be able to serve enterprises and community groups. They encourage savings and the build up of funds that then made available as loans to members within the bond area thus rooting finance locally. Many Credit Unions bank with the Cooperative Bank. In the US and Ireland the CU are important.
The state is a double edged instrument which will be used by those that “capture” its main agenda. There are many in the present government connected to the City. For the state to act as a benign democratic trust, it need a vigorous citizens organized in their extra governmental associations, be they enterprises, mutuals cooperatives, NGOs and trade unions. This then might make a “courageous” state more possible.
Your well informed counter narrative, is educational and welcome, and may lead to practice on a larger scale in due course, nothing stopping folk doing the modest stuff which might help move things along.
The problem with credit unions is they have to make actual, real loans from the stock of capital they hold, not make new money up and pretend it’s a loan like the banks do. That hugely limits their effectiveness. What’s needed, then, to keep money circulating and growing in any one area is not only locally-owned banking but very probably a local currency too, one that can be generated locally and not merely exchanged UK pound for, well, Brixton pound as they do in Brixton. Myself, I’d be getting rid of abominations like Tesco too and setting up networks of local farms all over the country, an essential for local independence. Credit unions are a step in the right direction, however.
I don’t like podcasts, Richard, they’re hugely inconvenient. I can’t skim through them the way I can with text and I won’t sit there ploughing through them in real-time just in case something interesting’s in there; I mean, who has time?
I opened a Smile account many years ago and have had no problems. My only criticism is that their software for managing online is somewhat dated but it is usable.
Teresa, like you I opened a Smile account (the Internet branch of the Co Op Bank)many years ago, moving from Nat West because they screwed me with an excessive charge when I shifted my mortgage. Smile’s service is generally excellent but sadly their interest rates on deposits and ISAs are shocking. While I maintain my current account, credit card and some deposits with them I’ve had to move my cash around chasing a rate a bit nearer to inflation. If they upped their rates I’d definitely move back.
One thing I was unhappy about was Co Op Bank’s merger with Brittania BS who were raided by HMRC for suspected fraudulent manipulation of a tax avoidance scheme involving swaps back in 2005. The case never came to court. The scheme was sold to them by PWC and subsequently over turned in the House of Lords. I wrote to Co Op Bank ahead of the merger suggesting that Brittania’s risk profile needed real scrutiny and did not fit the Co Ops ethical statements but I never got a response. I hope such machinations have never been a feature for the Co Op but I don’t know for sure.
Richard, just wondered if you did any research to satisfy yourself on this score and what the result was.
I notice some other mutuals do quite a lot better on interest rates like Nationwide and they are pretty safe. Unfortunately they don’t have a branch in my area. Don’t know to what extent they are involved in tax avoidance though. I have to say that it makes sense to spread your cash around a number of banks/building societies these days. Even if your deposits are below the government compensation limit, it would be a tad inconvenient to have all your funds with a bank that gets caught out when the music stops.
I agree – Coop rates are not good!
This one to be looked at when it is of major concern to me….
The Co-op Bank also has off-shore “international” branches in the Channel Islands and Isle of Man, so is perhaps not completely “ethical”.
I think you’ll find it’s mainly serving locals
But no it’s not 100% innocent
I accept that
I’ve been meaning to do this for ages but kept putting it off becuase of the hassle of setting up direct debits etc; thanks for giving me the push I need to follow through with it. Co-op here I come! In a similar vein, my contract with Vodafone is now up and I am looking forward to moving to a more (tax) ethical supplier. In my particular circumstances it would be easiest to move to Orange, but are they any more ethical than Vodafone? (This is where you need a ‘Fair Tax’ kite mark.) Any suggestions for an ethical phone provider?
Try the phone coop
Richard
I would if I had any.
The idea and concept is great but who decides who the good Banks are?