Bank switching Standing Orders

JustSomeone · 17 January 2018 at 4:54PM

When bank switching there is typically a clause stating the you need to have at least two direct debits or standing orders to get any 'reward' for switching.

The account I'm considering switching only has 1 direct debit. If I set up a standing order from this account to another account of mine with a different bank would this then qualifiy?

Specifically I'm thinking of moving a Smile account to the HSBC Advance Account. The standing order I'm thinking of creating would be from the Smile account to a Santander account.

Thanks

gingercordial · 17 January 2018 at 5:11PM

No. Standing orders are not the same as direct debits. There is not typically a clause which says transfer two "direct debits or standing orders". You need to read the one you are trying to apply for carefully. Does it actually say "standing orders" in black and white?

Typically the switching bonus T&Cs say there must be two direct debits, and they mean two direct debits, not one direct debit and one standing order.

It is like if the T&Cs said you have to hand over two cats for a bonus. If you instead give them one cat and one dog, that is not what the conditions are and you will not get the bonus because they specified two cats.

Sconeyj · 17 January 2018 at 5:23PM

gingercordial is right in saying that it's typically two direct debits (not standing orders), but the terms for the HSBC Advance switch offer, which you're considering, state:

Instruct us to start a full switch of a current account with at least 2 Direct debits/Standing Orders using the Current Account Switch Service (CASS) to start within 30 days of your Eligible Account being opened for the £150.

Whether that means you can have one direct debit and one standing order is ambiguous, but certainly standing orders are allowed in this instance. I'd check with HSBC before applying just to make sure.

I'd emphasise to always check the terms of the individual switching offer to make sure you're complying with the terms, however.

JustSomeone · 17 January 2018 at 6:08PM

Thanks for the reply... probably best to check with HSBC because as you say it is ambiguous.

JustSomeone · 17 January 2018 at 6:11PM

@gingercordial Thanks for the reply. 'Typical' may be the wrong word although the conditions I have looked at, both in this case and previous switches have all been 2 direct debits/standing orders, hence I thought it was fairly typical. However, I have never seen them ask for cats or dogs

Bank switching Standing Orders

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