Set up SO: Bank with FPS

adindas

Dear All

If you are doing SO in sum of £1,000.00 from bank A to Bank B. Both banks accept inward and outwards SO FP. How many days do we need to leave to prevent penalty for overdraft ?

So if I transfer money let say tomorow November 19 from Bank A to Bank B. With faster payment it will arrive in the same day to Bank B.

But If I set up SO from B to A on the same day of transfering (e.g. November 19) ir might happen that the transfer back to A happen before the money arrive into account B. So our Bank a/c in B will be Red, pay penalty.

Another issue if we transfer it in the same days is that Bank Holiday, Weekends (for Some Banks), the payment server from banks might be down, etc.

So in your expereince how many days do we need to count between the Inward tranfer and transfer back to the origin account.

Thank you for your time

ADINDAS

premierfella

To prevent the possibility of overdraft use fees completely, you would have to assume that the payments go by BACS rather than Faster Payments given that the FPS is not guaranteed.

Mikeyorks

adindas wrote: »

So in your expereince how many days do we need to count between the Inward tranfer and transfer back to the origin account.

At least 5 or 6. To cover the permutations of weekends / Bank Holidays ..... as SOs work overnight but only on Bank working days.

Which is why I never use SOs unless it's within the same Bank - in which case they usually go as 'internal transfers' and are the same as immediate FP (except they still go overnight). Much safer - and more cost effective - to make a diary note and do it via immediate FP.

adindas

Dear All

Thank you for quick reply.
This will means we will be loosing interest for 5 days.
Is there any way to avoid this ?.

At the moment, I normally do manual online FP and come back again to a few minutes to the origin account. But this is time consuming considering we need to do it every month, need to log in in two banks every month.

There is also a risk that we might forget it.

Do you have any trick how to avoid this ?

Thank you for your time

ADINDAS

Milarky

Mikeyorks wrote: »

Much safer - and more cost effective - to make a diary note and do it via immediate FP.

This method works best for me too.

adindas

Another possibility is using internal transfer from Saving a/c to current account which requires minimum funding.

£200 in saving a/c is enough. it the funding requirement requires 800, do it in and out 4 times if £1000, five times just a matter of minutes.

But the currently some banks already aware about this and they start put in their T&C that the money have to come from external.

Another uncomfortable thing is that you have to log on each month. Also, you might forget, or you might be on holidays where it is sometimes difficult to do this.


ADINDAS