Direct Debits

slinga
slinga Posts: 1,485 Forumite
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in Savings & investments
Do banks earn money through Direct Debits?

If not what's with the requirement for 2 or more DDs with accounts?
It's your money. Except if it's the governments.
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Comments

  • Stevie_Palimo
    Stevie_Palimo Posts: 3,306 Forumite
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    As far as I am aware the direct debit takes 2-3 days from point of request so there may be some money earned on it but never heard of a bank requiring 2 dd's on an account and I have 7 bank accounts with a few that have single dd's on them.
  • saintalan
    saintalan Posts: 562 Forumite
    Probably to stop most using it as a savings a/c or make life difficult for those that persist.

    That's what we do here...persist!
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    slinga wrote: »
    Do banks earn money through Direct Debits?

    If not what's with the requirement for 2 or more DDs with accounts?


    assuming you are talking about a/cs like santander 123

    then no, they don't directly make money form a DD

    however they are trying to encourage people to use their a/c as a 'main' or only account rather than simply a savings a/c
  • slinga
    slinga Posts: 1,485 Forumite
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    Stevie_Palimo wrote: »
    As far as I am aware the direct debit takes 2-3 days from point of request so there may be some money earned on it but never heard of a bank requiring 2 dd's on an account and I have 7 bank accounts with a few that have single dd's on them.
    I understood Santander require 2 DDs and don't Lloyds Club account require 2 DDs???.
    It's your money. Except if it's the governments.
  • slinga
    slinga Posts: 1,485 Forumite
    First Post First Anniversary
    CLAPTON wrote: »
    assuming you are talking about a/cs like santander 123

    then no, they don't directly make money form a DD

    however they are trying to encourage people to use their a/c as a 'main' or only account rather than simply a savings a/c
    Thanks. So if I wanted to use Santander as a savings account only, ie. get the 3% on say £20k would I have to set up 2 DDs???
    It's your money. Except if it's the governments.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    slinga wrote: »
    I understood Santander require 2 DDs and don't Lloyds Club account require 2 DDs???.
    slinga wrote: »
    Thanks. So if I wanted to use Santander as a savings account only, ie. get the 3% on say £20k would I have to set up 2 DDs???

    Yes.

    Refer to the current T&Cs for details.
  • slinga
    slinga Posts: 1,485 Forumite
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    edited 18 May 2015 at 11:12AM
    Archi_Bald wrote: »
    Yes.

    Refer to the current T&Cs for details.

    Have done but find them ambiguous.

    Is it 2 DDs to get full 123 stuff or two DDs if I only want the 3%
    It's your money. Except if it's the governments.
  • talexuser
    talexuser Posts: 3,498 Forumite
    Name Dropper First Post First Anniversary
    Halifax also require 2 dds to get your £60 a year.
  • saintalan
    saintalan Posts: 562 Forumite
    2 DDs gets you the applicable interest ( based on balance)

    DDs with appropriate organisations gets you the 123 stuff (cashback).
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    edited 18 May 2015 at 4:55PM
    But Santander also pay cashback on Direct Debits on the 123 account.

    3% for telephone, broadband and phone / mobile phone bills,

    2% on council tax, water rates

    1% on others.

    Who pays for this?

    3% off SKY, phone bill and mobile phone is great. 2% off council tax and water rates aint bad!

    More than offsets the monthly charge for the account - £2.00?
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