Trying to understand DDs and Standing Orders

isayhello

Hi,

I'm thinking of opening a First Direct account and wish to use my nationwide flex account to do this to switch 2 DD's or SO's from there.

What I'm unsure of is, should the DD or SO's that I set up be so that the money is being taken out of the flex account and put into another account, or that it's being paid in from another account in to the flex account?

Thanks for your help, am also going to use this information to help me set up the new DD's required for the Halifax reward accounts later in the year.

Thankyou

innovate

A Standing Order is something that you set up. It pushes money out of the account you set it up on, to another account of yours, or to someone else's account.

A Direct Debit is something that pulls money out of a current account. Mostly you would authorise a company (e.g. utility) to pull money out of your account . Very occasionally you would also set up a DD yourself, e.g. to pull money out of a current account into a savings account of yours.

Whether you ask the FD Switcher Service to move a DD or SO or both is your decision.

isayhello

Thanks,

So in the simplest case, if I set up 2 standing orders for £1 each to pay from my flex account into another one of my current accounts, then I've satisfied the First Direct criteria on this front?

Just want to be sure before I go ahead and make the switch.

Thanks for your help

isayhello

To add, I know about the other £1500 criteria as well, I purely just want to make sure I get the DD/SO bit correct.

YorkshireBoy

isayhello wrote: »

So in the simplest case, if I set up 2 standing orders for £1 each to pay from my flex account into another one of my current accounts, then I've satisfied the First Direct criteria on this front?

Yes, but...

FD will (should) send you a list of all your bill payments, SOs, and DDs you have with Nationwide. You'll need to cross out all but these two SOs otherwise they'll switch the lot!

isayhello

Cheers, so this isn't an online process when I open the FD account then? the account switching happens later via post?

YorkshireBoy

isayhello wrote: »

so this isn't an online process when I open the FD account then? the account switching happens later via post?

What happens when is detailed on their website here...

http://www1.firstdirect.com/1/2/banking/switching-bank-accounts (click the timings tab)

If you're considering a switch you might want to spend some time browsing their website just to make sure you don't come unstuck.

isayhello

thanks, I'll do that.

Am considering the switch for their new customer offer and also to open the reg saver.

fiesta04

Yes a win win situation.

Also open their e-saver account now to save having to fund £1500pm in the future.

F4

isayhello

Thanks for the tip, do you have any info on this as the terms of the £100 joining offer are to add £1500 per month I think, I just checked this again on their website but might have missed something.

fiesta04 wrote: »

Yes a win win situation.

Also open their e-saver account now to save having to fund £1500pm in the future.

F4

pvt

innovate wrote: »

Very occasionally you would also set up a DD yourself, e.g. to pull money out of a current account into a savings account of yours.

Hi Innovate,

Your description of SOs and DDs is very good, except for the sentence above. I believe this is quite wrong. An individual cannot set up a DD. In the example you have cited the bank you hold the savings account with would need to set up the DD.