Coventry Building Society agrees to buy the Co-operative Bank: what it means for customers

Coventry Building Society has agreed a takeover of the Co-operative Bank for around £780m.

The potential move would result in a combined group managing balances of almost £90bn. 

The takeover would be the latest in a string of banking mergers, hot on the heels of Nationwide agreeing to buy Virgin Money and Barclays purchasing Tesco Bank.

Read on to find out how the potential takeover could affect customers, and for advice on whether now is a good time to switch banking providers. 

Coventry agrees to buy the Co-operative Bank

After several months of discussions, Coventry Building Society has agreed outline terms to buy the Co-operative Bank.

The exact terms of the deal are still to be confirmed, and at this stage it isn't guaranteed to go through.

Under the proposed takeover, the Co-operative Bank would be integrated into Coventry Building Society over a period of several years. 

The Co-operative Bank has around three million customers and 50 bank branches. The sale would make Coventry the seventh-largest lender in the UK, and significantly bolster the number of personal and business bank accounts it manages.

How will the sale affect Co-operative Bank customers?

At this stage, details of how the takeover might work are scarce.

However, the move would eventually result in Co-operative Bank account holders being moved across to Coventry Building Society. 

It's likely that more details will be published should the deal be confirmed, but at the moment Co-operative Bank account holders don't need to do anything. 

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Should I switch away from the Co-operative Bank?

While there's no immediate need to switch your Co-operative Bank account, it's always worth checking you're getting everything you need from your banking provider. 

In our annual Best and Worst Mortgage Lenders survey, Coventry fared much better than the Co-operative Bank. It ranked 7th out of 22 providers with an overall score of 70%, while the Co-operative Bank finished joint bottom with a score of just 54%.

When it came to best bank accounts, however, we didn't receive a big enough sample size to rank Coventry. 

The Co-operative Bank was ranked 11th out of 21 providers. It also earned a Which? Eco Provider badge for setting high ethical standards over the businesses it offers its services to. 

• Find out more: best mortgage lenders for 2024

Best bank account switching incentives

If you're looking to change your bank account provider, it's worth keeping an eye on the latest switching incentives – but blink and you might miss them.

First Direct currently offers the biggest cash payment for switchers – £175 – but the deal is set to end on Monday, so you'll need to be quick. 

In the past couple of months, we've seen HSBC, Santander, NatWest and Lloyds Bank launch and subsequently withdraw switching incentives. 

While switching can be lucrative, it isn't the right decision for everyone. See our story on the reasons not to switch banks for more information. 

• Find out more: best banks and bank accounts for 2024