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Icesave - No Need To Use A Dd Pull?

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  • masonic
    masonic Posts: 24,578 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    a&akay wrote:
    Masonic. What happens when there isn't sufficient money in your current account when the DD request is made by ICESAVE on it?
    If the direct debit is paid, I phone my bank and get an immediate refund under the direct debit guarantee. I then recover any penalty charges from Landsbanki, or the financial ombudsman if they do not agree to pay the charges arising from their unauthorised direct debit transaction.

    Anyway, if you are experiencing Direct debits being taken without your consent, it is really covered under "when the direct debit system did not work", which I posted above.

    If you are talking about direct debits that you have set up, then why not tie a knot in your handkerchief or something so you don't forget to transfer the required funds to your current account, eh? ;)
  • SeanW
    SeanW Posts: 322 Forumite
    oldfella wrote:
    You're not really in control, for 2 days your £x is not in either of your accounts, and could be anywhere.
    it doesnt work like that ..... you raise the DD at Icesave on the Monday, the money leaves your account on Weds and arrives at Icesave on Weds. The major issue is it needs to be in your account on Tues because of the "day before" procedure.

    So basically its instant delivery and you save 1 maybe 2days interest.

    Mike

    Sorry you misunderstood, I was replying to a&akay, who said that they were in greater control with the BACS payment. It is BACS I am referring to as money disappearing from both accounts.

    You are indeed correct regarding the direct debit, which is why I prefer it along with the safety.
  • Where banks/BSs offer both DDs and BACS, I've invariably found DDs to be more interest-efficient, with transferring funds typically taking 1 less day "in the ether".

    My difficulty with ICESAVE is that I don't know the date of the DD, so I don't know when I have to have the funds in my non-interest-paying current account, ready for transfer. Requesting a transfer on a weekend (with ICESAVE) typically gives an earliest "DD arrival date" of the coming Wednesday, along with a message to ensure I have sufficient funds in my account. But for when?! immediately? Monday? Tuesday? Wednesday? And if I change the "arrival date" to Friday, when do I then have to have the funds in place?

    For smaller sums it isn't a big deal, but it can amount to a lot of lost interest for larger pots. Some transparency with the process would be very helpful, especially as their customer centre seems to be totally swamped.
  • ...typically gives an earliest "DD arrival date" of the coming Wednesday, along with a message to ensure I have sufficient funds in my account. But for when?! immediately? Monday? Tuesday? Wednesday? And if I change the "arrival date" to Friday, when do I then have to have the funds in place?...
    Why not do a few "test" DD transfers of, say £1, and answer your own question?

    FWIW my own "testing" would give the following answers to your examples above:
    1) Wednesday
    2) Friday
  • lolly5648
    lolly5648 Posts: 2,257 Forumite
    Part of the Furniture 1,000 Posts
    I too don't understand the DD dates for Icesave. Why cant you put the date you want them to take it out of your bank a/c and as it is instantaneous you know where you are
  • lolly5648 wrote:
    ...Why cant you put the date you want them to take it out of your bank a/c and as it is instantaneous you know where you are

    The answer is that you can. For instance in "justaquickie"'s example above he sets the date to Friday and the DD happens on Friday. I can't see how it could be simpler really.
  • jem16
    jem16 Posts: 19,460 Forumite
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    LardyCake wrote:
    The answer is that you can. For instance in "justaquickie"'s example above he sets the date to Friday and the DD happens on Friday. I can't see how it could be simpler really.

    If the date was set to Friday, it would come out of your current account on Friday and arrive in your Icesave account on Friday. However the funds are requested from your current account on the Wednesday and you must have funds available at that point.

    This is where the confusion arises.
  • oldfella
    oldfella Posts: 1,534 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    However the funds are requested from your current account on the Wednesday and you must have funds available at that point.
    I think the funds need to be in your account the day before the withdrawal - ie the Thursday

    Mike
  • jem16 wrote:
    If the date was set to Friday, it would come out of your current account on Friday and arrive in your Icesave account on Friday. However the funds are requested from your current account on the Wednesday and you must have funds available at that point.

    This is where the confusion arises.
    I think you are wrong. The important bit, as you say, is:
    "If the date was set to Friday, it would come out of your current account on Friday and arrive in your Icesave account on Friday." Therefore you need to get the money into your current a/c on the Thursday, ready for the Friday.
    AFAIK no funds "are requested from your current account on the Wednesday", this is merely Landsbanki's advice to you, to play safe and make sure you have funds to cover the DD when it is taken.
  • Thanks to everyone who has responded/posted!

    I bit the bullet and sat through what seemed like several hours of mind-numbing muzak to speak with the good people of Iceland, well Newcastle. (Clearly, they don’t know or appreciate my forum alias!). I’m pleased to report the lady really did go out of her way to try and help but ultimately she couldn’t actually shed any light on the issue. She said that “in her experience, DDs requested on a Monday (with a Wed arrival date) often result in funds being debited from the linked account the same day (Mon) or the next (Tue), but that Icesave just initiate the request and that I need to take it up with my current account provider – why aye” (ok, she didn’t actually say “why aye”). And that to be safe, I should always have the money sitting in the account on the Monday, when I request the DD

    Note: The DD chronology given in
    http://www.financial-ombudsman.org.uk/publications/ombudsman-news/38/standing-orders-direct-debits-38.htm
    suggests the funds need only be in place for Day 3? But I don’t know if this is gospel or not.

    When I asked about future-dated DDs, say to arrive in 30 days time, she wouldn’t commit to the date that the DD would be initiated by them. When I pointed out this means that as the DD debit could be on any intervening day, she didn’t dispute my reasoning?! I expected her to say the money must be in the current acc a couple of working days prior to the arrival-date, but she didn’t – and wouldn’t be pressed. Hmmmm.

    So, my take on all this is that I’m not prepared to risk the penalties and lost interest resulting from insufficient funds. So, I’ll be limiting my DD transfers to those of the “asap” variety, and initiate them on a Monday morning immediately after moving the funds into my current account. I’m not suggesting anyone should do the same or similar.

    Good luck.
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