Natwest saying money needs to be in account 4 days before payment due?!

rileydog

I just logged into Natwest online banking and there was a message which you had to check the box to acknowledge before you could see your account details.

It said:

If a standing order or direct debit is due out of your account over the forthcoming Bank Holiday weekend (Saturday, Sunday, Monday or Tuesday), sufficient cleared funds will need to be in your account by 3.30pm Friday. These entries will debit your account on Tuesday 31st May but will reduce your available funds over the weekend. Please select this box to acknowledge this notice.

Is it just me or does that seem a bit cheeky? What about those who have all DD's coming out on the same day after they've been paid. According to this message Natwest will want the whole amount (potentially over a thousand pounds) four days before the money is due to come out and before the person has been paid!

opinions4u

Good for them for making it clear.

Weekends and bank holidays are not bank working days. Nat West are simply reminding you how it's been for many years.

They are simply saying fund your account the working day before the direct debit goes out.

rileydog

I'm well aware that weekends and bank holidays are not working days and as such any payments due to come out on those days come out the next working day.

Eg Direct debit set up for 30th each month, if the 30th falls on a bank holiday it will come out the following working day. In that scenario I'd make sure I had the funds in there ready for the next working day.

premierfella

Cleared funds of course include any overdraft limit, which is what I use to avoid the need to have funds sitting in the account for the long weekend (although I accept not everyone is in a position to do the same).

rileydog

premierfella wrote: »

Cleared funds of course include any overdraft limit, which is what I use to avoid the need to have funds sitting in the account for the long weekend (although I accept not everyone is in a position to do the same).

I don't have an overdraft as have never needed one.

I get paid on the last working day of every month, in this case Tuesday 31st which is a regular working day. All my DD's are due to come out on Tuesday 31st, the same day I get paid, so I don't see why Natwest expect me to have the money ready for them on Friday when they're not due out til Tuesday - which is a regular working day anyway!

YorkshireBoy

rileydog wrote: »

Is it just me

Yes.

What about those who have all DD's coming out on the same day after they've been paid.

Not sure what you mean? Do you mean DDs leaving the same day they're paid...or DDs leaving the day after they're paid. It's one or the other isn't it?

YorkshireBoy

rileydog wrote: »

All my DD's are due to come out on Tuesday 31st, the same day I get paid

With respect, that's very poor financial planning on your part.

What if your pay is late for whatever reason (or, as you've found here, weekends and Bank Holidays get in the way)?

Best to leave at least 4-5 days between (regular planned) income and expenditure in my opinion. That way, you have time to chase up your wages and/or transfer from savings and/or borrow from family should the worst occur.

callum9999

Faster payments go in regardless of whether it's a working day or not - and the available balance updates immediately - so presumably that count's as "cleared"? So surely (although not advised in case there is a hold up), you could put money in on the Bank holiday Monday and any direct debits due on the Tuesday will come out fine?

rileydog

Sorry YB, comma missing. "...same day, after they've been paid"

So if it is just me... Can you explain to me what the justification would be as to why I should have the funds ready for Friday when they're not due to come out til Tuesday (my payday) which is a regular working day?

stclair

In reality you have until 14.30 on Tuesday 31/05/11 to pay cleared funds into your account should the items debit your account on Saturday 28/05/11 to aviod being charged.

rileydog

YorkshireBoy wrote: »

With respect, that's very poor financial planning on your part.

What if your pay is late for whatever reason (or, as you've found here, weekends and Bank Holidays get in the way)?

My wages are always paid early if payday falls on a weekend day or bank holiday - it's the last working day of each month. I've never had a problem in the 7 years or so I've been paid on the last day of every month and had DD's coming out the same day.

As above I have never had the need for an overdraft as I have savings to fall back on if needed. I just feel miffed that Natwest expect me to put the money in there four days early as it's not due out on a weekend or bank hol but a regular working day!