Standard Life Direct Debit

tohop

Hi there.

I am in the process of applying for a Cash ISA with Standard Life. I am a little confused about something though. They posted out a Direct Debit form for me to fill in for transferring money to and from my external account. I do not understand why they need this? I did not specify regular payments to be made to this account. In my previous ISA, if i wanted to transfer money from my ISA I would just do a one off transfer through the online banking. I specified I wanted to use online banking with my new SL ISA. They have no need whatsoever to set up a direct debit to my external account in my opinion. Or am I wrong?

Baldur

Your opinion has little bearing on this, if a savings institution specifies that they need a DD in order to operate the account, your failure to complete one would permit them to cancel the contract with you.

tohop

Yes I'm aware of that, but that doesn't answer my question. I just don't see why they need a DDM from me. However, I have just been googling this a few minutes ago, and it seems as though this is just the way they do it. I read that their accounts do not have sort codes so they carry out transfers using direct debits. I could be mistaken.

Baldur

Many savings accounts do this, ING, AA, ICICI Bank, to name but a few.

tohop

OK, thanks Baldur. I was just slightly worried incase they got my account details wrong and were planning to dump monthly interest into my external account or something.

Mikeyorks

tohop wrote: »

I read that their accounts do not have sort codes so they carry out transfers using direct debits.

A DD payment into their account is sent via BACS (Direct Credit) ...... so it has to have a Sort Code for routing purposes. Albeit they may not make them public.

tohop

Q: What is your sort code?
A: Our accounts do not have a sort code. Deposits can be made.......

From their website. A white lie, but a lie nonetheless.