Co-op Bank faces a huge bill to overhaul creaking IT systems as the lender is also forced to plug a gaping black hole in its finances. The news emerged as analysts from Barclays predicted on Monday the mutual's capital shortfall could be as high as £1.8billion, almost twice that of previous estimates.
Click through latest news features
Savers turn away from Isas as poor rates of return see first ever annual fall in take-up of tax-free savings wrappers
The total amount of new subscriptions in 2011-12 dropped to £53.5billion, down from £53.7billion the previous year, driven by a substantial fall in the amount of money invested into cash Isas, says accountancy group UHY Hacker Young. The amount of new money subscribed to the latter was £37.7billion, down from £38.2billion. And this can be attributed largely to the falling rates of return offered to savers. ...read
DON'T MISS
- Foreign bosses who made a Footsie fortune How the UK's blue-chip companies became a magnet for overseas chiefs
- Fed up of rising home phone bills? Here's how I slashed mine Wendy Jones used her computer to cut call costs
- CCJs are back to haunt me But I can't find the debt collectors to clear them
- Living abroad has wiped out our credit history And now we can't move back home? What can we do?
- The balance transfer credit card battle hots up MBNA cuts the price of moving debt but how does it stack up?
- Pensioners will struggle with debts of up to £100k More than 250,000 are seeing out retirement with credit card, personal loan or overdraft debts
- Did my husband's pension die with him? My husband died three years ago but I can't get any of his pension money
- 'Dividends are helping us travel the world' David Merriott and his wife Dot say equity income has boosted their retirement
Insurance
Compare thousands of policies
Credit cards
Compare today's best buys and other outstanding offers
Energy bills
Compare the cheapest gas and electricity tariffs in your area
Loans
Our tool scans the market for the cheapest rates on personal loans
Find the best deal for you GO
CITY & MARKETS
FTSE LIVE: Footsie on the back foot as traders consolidate; Severn Trent leads utilities up
NEW The FTSE 100 rose in early deals today but has since dropped back to stand 3 points down at 6,628. Severn Trent received a £5billion takeover approach from foreign investors, it emerged, its stocks surging 18 per cent, which lifted the utilities sector. The interest from Canadian investment group Borealis and the Kuwait Investment Office was confirmed by the Midlands-based company, triggering a rise of 276p to 2102.5p in its share price.
Latest from Markets
- FTSE LIVE: Footsie on the back foot as traders consolidate; Severn Trent leads utilities up
- 'Supermarket convenience stores help independent shops:' Sainsbury's King claims his Locals revive the high street
- ECB join American authorities to probe Bloomberg over spying on clients
- Flybe’s talks to sell Gatwick slots see shares soar by 13%, with easyJet rumoured to step up flights
- Ocado's plan to run online delivery service for Morrisons hits rocks as current partner Waitrose raises legal obstacle
- Fracking? There's 1,000 trillion reasons why we can't ignore it, says 'Mr Frack' - Cuadrilla's Francis Egan
- The Square Mile's top foreign chiefs who have made a FTSE 100 fortune
- MARKET REPORT: Life insurer Partnership Assurance Group tests float appetite
- Speculation is rife as Lloyds begins the hunt for a new chairman after Sir Win Bischoff confirms plans to retire
- ITV's High Noon of programming as broadcaster buys US TV producer to beef up stable of shows
- ALEX BRUMMER: Risk rises at 'ethical' bank as clouds gather over Co-op
- Co-op could be forced to fork out a fortune to overhaul outdated IT system as analysts warn of a £1.8bn capital hole
MONEY NEWS & ADVICE
Nurses, police officers and teachers have best chance of owning a home in almost a decade - but they need to buy in the North
Key public sector workers have seen the ability to purchase their own home continue to improve and is approaching the level last seen a decade ago, before the house price boom, research has found. Those in the public sector, such as nurses, police officers and teachers, can now find affordable property in 38% of towns - at the peak of the property boom it was just 4%. ...read
Running out of road: Classic cars like the Allegro, Montego, Maestro, Marina and Ital are on verge of extinction
A generation of popular cars that once dominated the nation's highways and kerbsides are now on the brink of extinction. The Austin Allegro is highest on the list of endangered cars with just 0.0453 per cent of those even built still being driven today. Famed for its square or ‘quartic’ steering wheel, of the 642,340 Allegros built between 1973 and 1982, just 291 remain today.
'Sorry, your home's a dope farm so you're not insured': The cannabis farmers who trashed my cherished buy-to-let
Luigi Gianino had little cause for concern when he rented his property to smart tenants, but four months later police raided the four-bedroom house and the investment property he had lovingly restored had become a cannabis factory, growing plants with a street value of £150,000.
'We plugged our phone into the computer and slashed our bills': Reverse soaring home phone costs
As mobiles take over, fewer people have landline phones than ever before - but those who do are paying more. The cost of line rental has risen by up to 50 per cent over the past five years, from an average £10 a month to £15. Wendy Jones cut down on her costs dramatically and now pays just £5.99 per month.
'I was stranded when Bank of Ireland hiked my mortgage:' Record complaints but thousands won't get watchdog's help
Britain's banks and insurers are buckling under record complaints, many of which end up with the Financial Ombudsman Service. It is dealing with a record 400,000 new cases a year and fielding almost two million inquiries. However, it cannot help in every case - as thousands like Caroline Grierson discover.
'I got a better deal AND money back': Ditch your energy firm to beat bigger bills
Energy companies are being investigated and fined for misleading customers or forcing them to sign up to poor deals. Although the industry says it is cleaning up its act, misleading claims and confusing tariffs are still the order of the day. But there are great savings to be made by switching suppliers, we explain all you need to know.
MORE BUSINESS, CITY AND ECONOMY NEWS
Speculation is rife as Lloyds begins the hunt for a new chairman after Sir Win Bischoff confirms plans to retire
The bank (down 0.85p to 58.09p) said it was open-minded as to whether an internal or external candidate is appointed. But insiders confirmed Lloyds is ideally looking for someone with strong experience in banking or financial services.
YOUR MONEY ESSENTIALS
Co-op Bank downgrade: do savers need to worry and what does it mean for borrowers?
The Co-operative Bank is battling to reassure millions of customers it does not need a bailout from taxpayers, after its credit rating was slashed to 'junk' status. We ask what it means for savers and borrowers at the bank. ...read
'Without a blackbox I wouldn't have been able to afford my car': Telematics helps women cut soaring car cover
Young female drivers like Josie Elworthy (pictured), whose car insurance premiums have soared to a record high after EU gender rules were introduced in December, can keep a lid on costs with ‘black box’ technology that rewards safer driving. The box is a tracking device fitted into the vehicle, allowing insurers to monitor driving behaviour including speed, braking and turning. The safer the driver, the lower the premium.
THIS IS MONEY: HOW TO FIX YOUR FINANCES
- The best credit cards for spending, holidays and rewards
- Climb on the ladder: The first-time buyer's guide to getting a mortgage
- Want a bank that does more? Five of the best current accounts
- How to start saving and track down the best rates
- How to get the cheapest car insurance: The tricks and traps of getting the best deal
- Tax-free savings: This is Money's five favourite best buy cash Isas for 2013
WHAT NEXT FOR YOUR MONEY?
Get saving now: This is Money's five favourite best buy cash Isas for 2013
A new tax year means a fresh Isa allowance to save. We pick our five favourite cash Isas for savers, don't miss this essential Isa reading that is kept up-to-date throughout the year.
Top tips for DIY investors: Three ways to avoid the savings drought
Iit has become even more important to think outside the box to make your nest egg work as hard as possible. Adrian Lowcock, of Hargreaves Lansdown, gives his three top tips for investors to beat inflation.
When will UK interest rates rise? Rates kept at 0.5% and QE on hold as economy shows signs of improving
The bank rate is at a rock bottom 0.5%, and one day it must rise. The big question is when? We explain the factors that will decide when interest rates rise and how quickly, including the latest forecasts from markets and economists.
LATEST MONEY COMMENT
- JAMES CONEY: Payment protection insurance vultures to target interest-only mortgages
- BEN GRIFFITHS: Departure of long-standing Diageo boss should give investors pause for thought
- JEFF PRESTRIDGE: Yes, it is about time ... to curb greedy bosses
- SIMON WATKINS: Let's not obsess over loss on banks
- ALEX BRUMMER: Smart deal-making by corporate Britain is important
Latest: Mortgages & home
- French mortgage rates nosedive to an all-time low – is now a good time to buy property across the Channel?
- Nurses, police officers and teachers have best chance of owning a home in almost a decade - but they may need to buy in the North
- Official data shows paying the mortgage became LESS worrying in recession as low interest rates shielded borrowers
- 'Sorry, your home's a dope farm so you're not insured': The cannabis farmers who trashed my cherished buy-to-let
- 'I've been left to fight Bank of Ireland in court:' Financial watchdog rocked by record complaints but thousands won't get help
- Homeowners from the North West most likely to have taken action over interest-only shortfalls
- How investors are going back to buy-to-let for a good return on their money
- Mortgage advert blunders making comparing home loans an even tougher task
- Call for progress on flood insurance deal as at-risk homes face being unable to get cover from July
Latest from Saving & banking
- Looking for a better bank? This is Money's five of the best current accounts
- Savers turn away from Isas as poor rates of return see first ever annual fall in take-up of tax-free savings wrappers
- Post Office reveals the three current accounts available in 11,500 branches next year – but are they any good?
- Co-op Bank downgrade: do savers need to worry and what does it mean for borrowers?
- British holidaymakers stung for £6 by their bank each time they withdraw cash abroad
- The savings race to the bottom: M&S; Bank Advantage Isa savers face yet another rate cut on Friday
- Our savings picks: This is Money's five favourite best buy cash Isas for 2013
- More than 1m Cheshire, Derbyshire and Dunfermline customers will see branches become Nationwide - or shut
- Overdraft limits squeezed when switching current accounts
- Britain's biggest lend-to-save firm Zopa to ring-fence savers' cash in a bid to shore up confidence
ANSWERS FROM THE Experts
- My husband died three years ago, why don't I get any of his annuity payments?
- I have two CCJs hanging over me but the debt collectors have gone missing. How can I clear them?
- Living abroad has wiped out our credit history and now we can't move back home? What can we do?
- Will the State pension delay for women also mean I have to wait longer for pension credits and a free bus pass?
- I'm worried that my pension with the Pru will disappear
- ASK THE EXPERTS: Can I take my late wife's unused IHT allowance?
- I want to raise money to expand my business but my only property is an Italian villa. Where can I get the cash?
- 'Help! Wonga has taken £273 from my account for a loan I never took out - what should I do?'
- Help! I have been given the wrong tax code and the taxman keeps raiding my pay cheque
- I want to buy £3,000 of shares for my Australian grandchild. How can I do it and where should I invest?
Currency | Rate | Buy now |
---|---|---|
Updated 14 May 2013. | ||
Euro | 1.1605 | Buy Now |
US Dollar | 1.5095 | Buy Now |
Australian Dollar | 1.4836 | Buy Now |
Canadian Dollar | 1.5064 | Buy Now |
Chinese Yuan | 9.0302 | Buy Now |
Croatian Kuna | 8.5803 | Buy Now |
Czech Koruna | 29.349 | Buy Now |
Danish Kroner | 8.478 | Buy Now |
Egyptian Pound | 10.079 | Buy Now |
Euro | 1.1605 | Buy Now |
Hong Kong Dollar | 11.546 | Buy Now |
Hungarian Forint | 331.68 | Buy Now |
Indian Rupee | 77.343 | Buy Now |
Japanese Yen | 151.52 | Buy Now |
Malaysian Ringgit | 4.3913 | Buy Now |
New Turkish Lire | 2.6815 | Buy Now |
New Zealand Dollar | 1.801 | Buy Now |
Norwegian Kroner | 8.5635 | Buy Now |
Polish Zloty | 4.7142 | Buy Now |
Singapore Dollar | 1.8414 | Buy Now |
South African Rand | 13.545 | Buy Now |
Sterling | 1.0 | Buy Now |
Swedish Kroner | 9.7454 | Buy Now |
Swiss Franc | 1.4257 | Buy Now |
Thai Baht | 43.349 | Buy Now |
UAE Dirham | 5.4701 | Buy Now |
LATEST ON HOUSEHOLD Bills
- 'I plugged into a computer modem and slashed the price of my calls': How to reverse rising costs of a home phone
- 'I got a better deal AND money back': Ditch your power firm to save pounds
- Are you a secret shopper? Brits hiding more stealth purchases from their partners as recession raises the guilt stakes
- £11billion energy smart meter roll out delayed by a year because 'more time is needed for testing'
- Tesco Clubcard customers can double their points again as voucher scheme is resurrected for two months only
- Npower launches longest ever fixed price tariff - should you fix your bills for three and a half years?
- BT throws down gauntlet to Sky with offer of free sport to broadband customers - but what do you get and is it a good deal?
- Fans head to overseas music festivals as the price of a UK ticket soars by more than 124% in a decade
- Fix your bills: how to cut your everyday costs and keep saving money all year round
- Mind the app: Parents fork out £30million on accidental purchases made by their children on smartphones and tablets
Latest from Cards & loans
- Credit rating: what does yours reveal?
- The balance transfer credit card battle hots up: MBNA cuts the price of moving debt but how does it stack up?
- JEFF PRESTRIDGE: End this plague of payday loan adverts
- Two payday loan firms surrender credit licenses and three more could be shut down as OFT ramps up action against lenders
- The best balance transfer credit cards to help clear your debts
- How to improve and protect your credit rating
- Going on holiday? Best debit and credit cards to help you avoid overseas fees
- Play your cards right: The best credit cards for spending, holidays, rewards or clearing your debts
- 'Irresponsible' Kerry Katona payday loan ad banned for encouraging debt to fund celebrity-style lifestyle
Latest: money and Cars
- 'Without telematics I wouldn't have been able to afford my car': A little black box helps women cut soaring car cover
- Weak pound pushes price of petrol for British holidaymakers in Europe higher - with fuel in Spain up 7% on a year ago
- Young motorists can save £200 on car insurance by using 'black box' technology to prove they can drive safely
- M6 toll road 'should be nationalised' urges transport chief as traffic drops by 40% in 7 years
- New car sales soar as cheap finance tempts buyers away from pricey second hand motors - and petrol engines bounce back
- Don't honk your horn by the hospital, and other bizarre driving rules - How to stay safe, and legal, abroad
- Big four supermarkets cut petrol and diesel prices in time for the bank holiday weekend as wholesale costs tumble
- Petrol sales slump to lowest level for more than 20 years but you may not have to ditch the wheels: Five of the most economical cars under £15k
- Young female drivers hit hard by EU rule changes as insurance costs soar by a FIFTH in just 12 months
Latest from Pensions
- Thousands of pensioners will struggle with debts 'of up to £100,000' to pay off in retirement
- How to make the most of a smaller pension pot: Don't stand by as your nest egg is eaten up by low rates and inflation
- Landmark retirement reforms bringing £144-a-week flat-rate state pension confirmed in Queen's Speech
- 'It was a no-brainer to take the pension rather than the cash': Why lump sums don't add up for many with final salary pensions
- The end of £66-a-week married person's pension: Who - and how many - will it affect?
- 'We are trapped': The life-long school friends split by the £44,000 state pension divide
- Ban on pensions middlemen whose rip-off fees wipe out retirement savings
- MPs call for lifeline for women who stand to lose out when £66-a-week married person's state pension is scrapped
- Over 65s have lost £4.6bn-a-year in banking crisis aftermath due to poor investment returns
- Women and young workers remain ignorant of generous tax relief on pension savings
- 10 steps to consider before equity release: Could releasing money from your home help your retirement?
Long-term savings
Broadband
Search for the best providers in your area
Insurance
Compare thousands of policies
Energy bills
You could save £££s on your energy bills. Find out in seconds
Credit check
Get a FREE trial credit check today to see what the financial services industry can see about you
GOWarranties
Get cheaper cover on
Car insurance
Compare more than 100 insurers in less than five minutes
GO