Coventry Building Society has confirmed that all customers of The Co-operative Bank, including those with smile accounts, will be transferred to the Society on 1 January 2027, subject to court approval. The West Midlands-based building society purchased The Co-operative Bank on 1 January 2025 and has now set out the next steps in the integration process.
In a statement, the building society said: "We’re now working on the next steps to bring our organisations together. To do this we’re proposing to transfer the Bank’s business, including smile, to the Society. We expect this to happen on 1 January 2027, subject to Court approval of the proposed transfer."
What the transfer means for customers
The proposed transfer will not affect accounts held directly with Coventry Building Society, and customers do not need to take any action to maintain their day-to-day banking. However, customers of The Co-operative Bank, including smile account holders, are being urged to check correspondence they have received.
The society added: "But if you have accounts with The Co-operative Bank (including smile), you will have received a letter or an email, and we recommend that you read the documents on The Co-operative Bank website."
FSCS protection changes explained
The Financial Services Compensation Scheme (FSCS) is the UK’s deposit guarantee scheme, protecting up to £120,000 for each eligible person per bank or building society should it fail. Joint accounts are eligible for FSCS protection up to the same limit of £120,000 for each person, meaning a two-person joint account is protected up to £240,000. This limit includes any individual accounts held with the same bank or building society.
Money will remain protected by the FSCS if the proposed transfer is approved. However, after the transfer, any deposits held in accounts with the Bank and smile brands will be held by the Society, resulting in a single FSCS protection limit of £120,000 applying to eligible deposits with the Bank, smile, and the Society combined.
Customers who only hold accounts with the Bank will retain £120,000 of protection for those accounts after the transfer. If they already have an account with the Society or open one in the future, their total protection will be limited to £120,000 across all accounts.
Court hearing and timeline
A court hearing is scheduled for 2 December 2026 to decide whether to approve the proposed transfer. If approved, the banks expect the transfer to take effect on 1 January 2027.
