Salary credit and Direct Debits on same day

adfax

I get paid each month on the 19th - the money being credited to my current account automatically and available on the 19th.

However, I have just set up a direct debit to pay my council tax, and that goes out on the 19th of the month (they would only offer the 19th or one other date - no flexibility).

In which order are credits and direct debits applied to my account? If I was in the situation where I was relying on my salary being available to pay my council tax, what are the chances of it being bounced?

If it is relevant, I bank with Co-op.

Many thanks.

Paulos77

As long as you have money in your account by end of play the day you get paid it should be fine. I have direct debits that come out on payday for me. Direct debits should never come out before the due date, so if your payday and direct debit falls on a weekend they should come out on the Monday where as you should have been paid on the Friday

scottishblondie

Many banks apply the debits before the credits and as a result you can end up being pushed into an overdraft for a short time, which would probably result in an unauthorised OD charge if you have no OD. It is unlikely that they will bounce the direct debit. I don't know about the Co-Op specifically but a lot of people complain about it happening.

Apricot

With my bank money has to be in your account by 3pm that day or DD will be rejected. Doesn't leave you much room if salary is ever late for some reason.

mum2one

My bank account the money has to be in the day before the debit due, so may be worth ringing the customer services,
x

mjm3346

See this thread, in Jan 2010 co-op wanted cleared funds in an account by 9pm the working day before payments were due, I do not know if this is still the case.



http://forums.moneysavingexpert.com/showthread.html?t=2180091

getmore4less

Don't risk it.

Run the account with buffer funds to cover outgoings in case any incomings are late.

You could always change the Council tax to a Standing order although not so convenent.

tiptoe_mouse

adfax wrote: »

I get paid each month on the 19th - the money being credited to my current account automatically and available on the 19th.

However, I have just set up a direct debit to pay my council tax, and that goes out on the 19th of the month (they would only offer the 19th or one other date - no flexibility).

In which order are credits and direct debits applied to my account? If I was in the situation where I was relying on my salary being available to pay my council tax, what are the chances of it being bounced?

If it is relevant, I bank with Co-op.

Many thanks.

I've just had a look at the terms and conditions for the Co-op's current account here: http://www.co-operativebank.co.uk/cfscombi/pdf/current_account_terms_and_conditions_011009.pdf

8. Our Right to refuse to make a payment
8.1 We may refuse to make a payment out of your account if:
• a payment exceeds a particular value or we suspect fraudulent activity as part of our monitoring for fraud prevention purposes, a breach of security or misuse of your account or security details. We will tell you when we do this. This may include access to your account, including telephone and internet banking, being blocked
• you do not have available money (by way of cleared funds or formal overdraft) in your account at 9pm the business day before to cover payments.
We may consider any due payments made, agreed or authorised from your account regardless of whether or not they have yet been deducted
• any relevant condition(s) of this agreement are
not satisfied.
If we refuse to make a payment we will notify you and may make a charge for refusing to make the payment as set out in our account charges leaflet

It definitely looks like they would bounce the Council tax DD, and charge you for the privilege.

Out of interest, which council is this? I've just checked the websites of both my current council and my previous one, and they both offer a choice of at least 4 dates.

HTH

tiptoe

themull1

I picked the date for my council tax, the beginning of the month, ie the first, i get paid on the last working day of the month.