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  • FIRST POST
    • Special_Saver2
    • By Special_Saver2 2nd Nov 07, 1:07 AM
    • 1,088Posts
    • 3,670Thanks
    Special_Saver2
    Direct Debit Payments into Savings Accounts
    • #1
    • 2nd Nov 07, 1:07 AM
    Direct Debit Payments into Savings Accounts 2nd Nov 07 at 1:07 AM
    A quick question for those of you who make payments into savings accounts using direct debit mandates.

    Do you get interest for the days when the money is in transit?

    I have read some posts stating this whereas payments by the BACS system result in 2-3 working days lost interest.

    What is your experience?
Page 1
  • jamesd
    • #2
    • 2nd Nov 07, 3:02 AM
    • #2
    • 2nd Nov 07, 3:02 AM
    With the direct debit method the money to the savings account is never in transit so it's not a factor. It leaves the account it's going from and arrives at the savings account on the same day.
    • scoot65
    • By scoot65 2nd Nov 07, 12:14 PM
    • 124 Posts
    • 39 Thanks
    scoot65
    • #3
    • 2nd Nov 07, 12:14 PM
    • #3
    • 2nd Nov 07, 12:14 PM
    With the direct debit method the money to the savings account is never in transit so it's not a factor. It leaves the account it's going from and arrives at the savings account on the same day.
    Originally posted by jamesd
    So, it looks like having a DD mandate is much better than having cash moved from one account to another via 'payment transfer' as this takes 3 to 4 days (I assume with loss of interest).

    I have three Reg Saver accounts which I feed via transferring from my feeder account.

    Looks like I need to change tranfer to DD mandates in order to not lose any interest?
    Last edited by scoot65; 02-11-2007 at 1:09 PM.
  • thebeak
    • #4
    • 2nd Nov 07, 12:20 PM
    On a similar note
    • #4
    • 2nd Nov 07, 12:20 PM
    Can you make a one-off wired transfer from 1 current account to another current account for free?
    How long before the money being transfered is 'cleared funds' so it can be withdraw from the receiving account?
    • DeepSporran
    • By DeepSporran 2nd Nov 07, 12:40 PM
    • 230 Posts
    • 112 Thanks
    DeepSporran
    • #5
    • 2nd Nov 07, 12:40 PM
    • #5
    • 2nd Nov 07, 12:40 PM
    I have three Reg Saver accounts which I feed via transferring from my feeder account.

    Looks like i need to cahnge tranfer to DD mandates in order to not lose any interest?
    Originally posted by scoot65
    It would be nice if this were possible.

    However, it would require the Regular Saver building society or bank to raise the DD each month requesting the payment from your feeder bank, and there are not many (if any ?) that will do this. So you're stuck I'm afraid. Things will improve next year when transfers become 'same day' rather than taking (at least) 3 days.
    • scoot65
    • By scoot65 2nd Nov 07, 1:10 PM
    • 124 Posts
    • 39 Thanks
    scoot65
    • #6
    • 2nd Nov 07, 1:10 PM
    • #6
    • 2nd Nov 07, 1:10 PM
    It would be nice if this were possible.

    However, it would require the Regular Saver building society or bank to raise the DD each month requesting the payment from your feeder bank, and there are not many (if any ?) that will do this. So you're stuck I'm afraid. Things will improve next year when transfers become 'same day' rather than taking (at least) 3 days.
    Originally posted by DeepSporran

    Thanks for the info DeepSporran. I'll stick with what I'm doing.
  • jamesd
    • #7
    • 2nd Nov 07, 11:13 PM
    • #7
    • 2nd Nov 07, 11:13 PM
    scoot65, yes, it is possible to arrange regular direct debit transfers or one-off direct debit transfers into a savings account. It's just a question of what options your savings account provider offers. Just try setting it up and see if they offer monthly or for x months options. Icesave and Bradford & Bingley both offer the regular direct debit monthly deposit option.
  • jamesd
    • #8
    • 2nd Nov 07, 11:15 PM
    • #8
    • 2nd Nov 07, 11:15 PM
    thebeak, not free if you want same day, yes free if you want normal three day clearing. Time for the funds to be funds you can draw on will depend on the receiver, likely to be a week or so at present.
    • Special_Saver2
    • By Special_Saver2 3rd Nov 07, 2:16 AM
    • 1,088 Posts
    • 3,670 Thanks
    Special_Saver2
    • #9
    • 3rd Nov 07, 2:16 AM
    • #9
    • 3rd Nov 07, 2:16 AM
    For regular savings accounts (i.e. those which require a monthly deposit), the Monmouthshire BS Saver Plus and the Britannia BS Fixed Rate Regular Saver Issue 2 operate by direct debit.
  • thebeak
    Thank you for your answer jamesd. If you were expecting money to be paid into a current account how would you know when its 'cleared funds'?
    Would it only come up as balance at an ATM when the funds are cleared? Or would you need to check with the branch when the funds are cleared so u can withdraw?
  • jamesd
    thebeak, you'd have to check with the receiving bank. How they display and handle the usual BACS transfers varies.

    If you went with the same day CHAPS transfer option I doubt that any bank would have a delay before availability, because a CHAPS transfer is irrevocable.
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