Lloyds - Transaction Timing

The_doomed

I have a current account with Lloyds. Money gets paid in every Tuesday (Bank Giro Credit). I also have a standing order that goes out on a Tuesday.

On a Monday, there is never (and never will be) sufficient funds in the account to cover the standing order going out on the Tuesday.

However the money credited to the account on the Tuesday will more than cover the standing order.

Will that be suitable for the bank (will the money going in and out happen at the right times for them so I am not charged) or do I need to move the standing order back a day, to the Wednesday?

Their telephone guys were unsure.

username

I think Lloyds do credits before debits, and I have noticed they pay money in fairly early, but it may have been between the banks of one of my previous employers (M&S) as on the odd occasion, the money was available before 12am on the day I was meant to be paid (so if I was paid on Tuesday, the money would have been in my account from around 11pm Monday eve).

For safety I'd move the standing order to Wednesday, or cancel it completely and manually check on the Tuesday morning that your salary has been paid and then transfer it by phone/internet. You never know if your employer's payroll dept may cork up your pay and you may not get paid or something.

ldn-100

As long as your account is back in the black by 3.30pm on any one day you can have a debit go out before a credit and you will not be charged.

http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp

The_doomed

ldn-100 wrote: »

As long as your account is back in the black by 3.30pm on any one day you can have a debit go out before a credit and you will not be charged.

http://www.lloydstsb.com/rates_and_charges/current_account_charges.asp

thanks

Do you know if I need to phone the branch or will it happen automatically?

RBS always insisted if i go over my OD and put funds in to cover before 3pm I needed to notify them to avoid being charged

mrmajika

The Lloyds TSB cycle works by crediting all funds shortly after 10.30pm Monday evening to Friday evening for the following day (and 12noon on a Sunday for the Monday). Approximately 20 minutes later all the Standing Orders, Bill Payments and Direct Debits leave.

So, in short, your setup as you have it just now is fine.

MarkyMarkD

AFAIK all banks credit incoming money before they process outgoing payments. The only exception to this rule is incoming money which comes in actually during the course of a working day - e.g. cash over the counter.

I would expect that under Faster Payments, the same will apply as currently applies to cash deposits, i.e. (for most banks) if the cash/faster payment comes in on the day the DD/SO goes out (or the cheque clears) then it will be too late.