Direct Debits from Savings account

Storm99_2

I am pretty new to this, so please forgive me if I do something wrong.

I am about to come into a lump sum of money, and was hoping somebody wiser than me would be able to offer some advice. Ideally what I would like to do is set up some sort of account, with a Direct Debit into my normal account to pay for the bills(Rent, phone, etc).

If this is possible could you point me in the right direction eg. how much money would be needed and anything else that could be of importance.

I appreciate any input.

grumbler

Storm99 wrote:

I...Ideally what I would like to do is set up some sort of account, with a Direct Debit into my normal account to pay for the bills(Rent, phone, etc)...

You need Staning Order for this, not Direct Debit.
See Savings accounts and standing orders? .

Mikeyorks

As the previous post - it's a Standing Order (SO) facility you need.

For simplicity and a bit of practicality (but your choice of interest rate may dictate otherwise) the Savings account will be with the same provider as your 'normal account'. As that would generally save the money taking 2/3 days to transfer between accounts.

And even more ideally - the Savings account will have online access. Which means you can monitor / change the SO as you wish? For example you may have a quarterly or annual bill - so you can change the value you transfer on those months. Then change it back again. But do make sure, if you vary the amounts you do it 48hrs before the SO is due to be actioned - to guarantee the Bank system picks up the change.

Also consider setting up more than just the one SO - unless you're unique your bills will tend to spread across the month a bit. So a couple, or three, SOs will leave more of the money at a higher rate longer. Rather than moving all your 'bills money' at the beginning of the month.

Storm99_2

Thanks for pointing me in the right direction, will now do some research and see what pans out.

Appreciate it, thanks.