Trying to understand DDs and Standing Orders

YorkshireBoy

isayhello wrote: »

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.

You have "missed something", the reason being it's not all in one place...you have to read everything and cross reference the various pieces of information!

In a nutshell, and in addition to the switching of your aforementioned SOs (x2):

You have to pay in £1,500 per month until you've got your £125 (not £100 as you say above).

After you've received your £125 you need to continue to credit at least £1,500 per month or they'll charge you a £10 per month 'banking fee'.

However, if you hold a 'qualifying product' with them (see the list on their website/in the T&Cs) then this 'banking fee' is waived if you don't credit the 1st Account. The Everyday e-Saver is one such 'qualifying product', meaning £1 in there removes the need to credit the £1,500 each month AFTER you've received your £125...not before!

YorkshireBoy

pvt wrote: »

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.

I think innovate simply missed a word (or two) out of the sentence, ie...

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

agrinnall

YorkshireBoy wrote: »

I think innovate simply missed a word (or two) out of the sentence, ie...

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

I'm not sure that's really helped . What you've added doesn't make sense, and it still doesn't address pvt's point that as an individual you are not normally able to set up a DD (only a DD Originator can do that).

Hazzanet

agrinnall wrote: »

an individual you are not normally able to set up a DD (only a DD Originator can do that).

The term has confusingly changed from 'Originator' to 'Service User'.

I think the type of DD being referred to are those where a bank or building society sets up a DD with your current account to pull funds from the current account to a savings account. Examples are Principality, ING Direct, Newcastle BS and Icesave (many years ago).

(In fact, click the hyperlink for a full list)

Buzby

agrinnall wrote: »

I'm not sure that's really helped . What you've added doesn't make sense, and it still doesn't address pvt's point that as an individual you are not normally able to set up a DD (only a DD Originator can do that).

He is correct. My former Egg banking account allowed me to be a DD originator and claim a set amount from a stipulated Sort Code and A/c No, and I had to confirm I had the permission of the A/c holder to claim. I've been using this method for the last 6 years, and still works with Yorkshire B S who took over the banking arm of Egg.

Gromitt

agrinnall wrote: »

I'm not sure that's really helped . What you've added doesn't make sense, and it still doesn't address pvt's point that as an individual you are not normally able to set up a DD (only a DD Originator can do that).

Whilst thats correct, it is quite easy to use an automated system (eg. Tesco Bank) that you request a DD to be setup, the frequency and amount and it goes away and does it for you without human intervention. So from the individuals point of view, they have setup the DD.

I think thats what Innovate was trying to say - hence why he said eg, from a current account to a savings account.

agrinnall

Thanks for the information, I sit corrected, I've obviously not banked with any of the organisations that allow this sort of thing (or not noticed it if they do allow it).

Gromitt

There's a list here of the banks that support it:

https://forums.moneysavingexpert.com/discussion/4168667

innovate

pvt wrote: »

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.

Yes, fair enough, I can't set up the DD physically myself. I should have said that, where offered, I can instruct and authorise the bank/BS with whom I hold my savings account to pull a given amount of money at given intervals from my current account into my savings account. And that this instruction is known as a Direct Debit.

This wording is probably not correct either for the purist - - but the good news is, we can all use DDs to automatically and regularly move money from our current accounts into [some] of our own savings accounts.

agrinnall

Grommit's posting of innovate's list explains why I, and probably many other people, have never come across this facility - I for one don't have an account in my portfolio with any of the institutions that offer it - and I can't see what advantage it offers over a SO to push the money from the originating account.