Direct debit on ING savings account...

jon-on-one

I work in savings, and have, inspired by my job, considered beginning saving for the first time in my life. Looked at the ING direct a/c, and it seems pretty ok. But I was concerned when the girl on the phone said that they would set up a dierect debit. I said I would do a standing order, and she said that they use the DD to request funds from my current account (which is with nat west, nothing to do with ing), either for a one off payment, as well as for my monthly savings. I was a bit concerned that they could just take money from my account, though, whenever they felt like it - she said they would only do it when I told them to, but it all sounds a lil dodgy to me. Is this something other banks do? We certainly dont at my work, to my knowledge. Any body else got any experience of saving with any bank (ing or otherwise...), using a DD on an a/c with another provider? Can anything go wrong?

Baldur

It's quite normal with quite a few online savings institutions - they 'pull' funds via DD when you complete a transfer instruction on your online account, rather than you 'pushing' funds via SO, etc.

evenasus

I have savings accounts with Bradford & Bingley, who use the DD system for 'pulling' money - but only when I instruct them.

Must say I thought this most unusual at first.

dzug1

You can 'push' funds as well, once you know the sort code/ac number of the savings account, but having the DD set up is an integral part of the account.

It was never any problem when I had an ING account, with either method.

The only problem with NOT using the DD is that unused DDs lapse and need to be reconfirmed - every 13 months I think

rb10

It's not a problem at all. Remember that Direct Debits are protected by the Direct Debit Guarantee Scheme, which means that if Ing did take one without your permission (highly unlikely in itself), you could go to Natwest, and they would put the money back into your account immediately.

Paul_Herring

jon-on-one wrote: »

I was a bit concerned that they could just take money from my account, though, whenever they felt like it - she said they would only do it when I told them to, but it all sounds a lil dodgy to me.

It's a rather unusual use of the DD (to pay into savings) but it's something ING have done since (at least near) the beginning.

They will only use it when you ask them to, so you still have absolute control over it.

The benefit of a DD over a SO (if it matters these days with interest rates as low as they are) is you do away with the 2-3 day period your cash is in limbo if your current account isn't part of the faster payment scheme.

withnell

I've never used the DD on my ING account - i push funds in myself by faster payments, and when they pay out it goes by BACS anyway

jon-on-one

rb10 wrote: »

It's not a problem at all. Remember that Direct Debits are protected by the Direct Debit Guarantee Scheme, which means that if Ing did take one without your permission (highly unlikely in itself), you could go to Natwest, and they would put the money back into your account immediately.

Yeah, I did hear about that - does anyone know where I can find the complete DD guarantee, btw? surely this cannot be it:-

• This Guarantee is offered by all banks and building societies that accept instructions to pay Direct Debits.
• If there are any changes to the amount, date or frequency of your Direct Debit (insert your organisation name)will notify you (insert number of) working days in advance of your account being debited or as otherwise agreed. If you request (insert your organisation name) to collect a payment, confirmation of the amount and date will be given to you at the time of the request.
• If an error is made in the payment of your Direct Debit, by (insert your organisation name) or your bank or building society, you are entitled to a full and immediate refund of the amount paid from your bank or building society.
  • If you receive a refund you are not entitled to, you must pay it back when (insert your organisation name) asks you to
• You can cancel a Direct Debit at any time by simply contacting your bank or building society. Written confirmation may be required. Please also notify us.

Are there not more complete Ts&Cs available, regarding the DD scheme?
E2A Oh, and many thanks to everyone for your responses. They have put my mind somewhat at rest....

jon-on-one

Baldur wrote: »

It's quite normal with quite a few online savings institutions - they 'pull' funds via DD when you complete a transfer instruction on your online account, rather than you 'pushing' funds via SO, etc.

Does anyone know which other banks do it? as someone said, its a very odd (I think their word was "novel"), use of the DD system. B&B got mentioned, but there must be some more?