Who does Transfers In by Direct Debit?

Oblivion

Greetings all. Hoping someone can save me a lot of research if it's already been done.

Looking ahead to when in a few month's time my wife will receive her retirement lump sum and she'll be wanting to put it into an easy access online account somewhere.

I remember a few years ago when I went through the hassle with my lump sum. The Building Society I chose (don't ask!) didn't do money in by Direct Debit, so because my bank has a daily transfer limit on money out I had to do separate transfers each day for a week ... what a PITA.

Does anyone know if there's a listing somewhere of Banks / Building Societies that use Direct Debit to transfer in all the money in one single transaction please?

YorkshireBoy

Does anyone know if there's a listing somewhere of Banks / Building Societies that use Direct Debit to transfer in all the money in one single transaction please?

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

But I'd approach it slightly differently. I'd produce a shortlist of accounts based on interest rate...surely the most important criterion - especially in retirement?...and then see if they did deposits by DD.

However, things will probably have moved on somewhat since you were in this position. Are you aware of your bank's FP limits?

You'll need to wait until the funds arrive (in your current account) before initiating a DD pull. This money will be taken 2-3 days later (depending on when - in the working day - you initiate the pull). So, if you bank with LTSB, Halifax, or BoS you could send up to £100K (over 4 days) in the time it takes to action a DD initiated 'after hours' on day 1.

With Santander you could even send £100K in one go!

Is the lump sum more than this?...or more than £40K if your bank has the 'typical' £10K FP limit?

barak

These days we have faster payments! Check here to see the maximum your bank allows you to transfer in a single online transaction.

http://www.paymentscouncil.org.uk/resources_and_publications/faster_payments_value_limits/

innovate

Oblivion wrote: »

Looking ahead to when in a few month's time my wife will receive her retirement lump sum and she'll be wanting to put it into an easy access online account somewhere.

If she is still a tax payer after retirement, she should put the max (£5,760) into a cash ISA next financial year.

If she is not a taxpayer any longer, she should fill in an R85 form to receive gross interest.

As has already been mentioned, select the account(s) you'd like first, and only then look at deposit/withdrawal methods. If the interest-rate landscape in a few months time is still anything like it is today, your best bet for the non-ISA deposit are current accounts, not savings accounts, anyway. And you definitely get DD facilities with current accounts.

However.....why do you need DDs? Just transfer the money online, with Faster Payment. Even if the limit per transaction is e.g. £10K, many banks allow several of these transactions per day. So you can push the money by Faster Payment (and/or SO), rather than pull it (by DD).

Lastly, if we are talking about more than £85K, make sure you split it between different financial institutions.

(ps. when I say "you", I mean "your wife", cos it is her money).

mgdavid

Oblivion wrote: »

.........because my bank has a daily transfer limit on money out I had to do separate transfers each day for a week ... what a PITA...........

really? why not write a cheque?

Oblivion

Thanks all for the helpful advice.

It's going to be just over £60k so doesn't need to be split.
Yes, we do max out our cash ISAs every April .
We bank with HSBC and it's not clear from the link to transfer limits what limit applies to non-corporate customers, so I need to email them to clarify.

Thanks again.

innovate

HSBC is £10K per transaction - not sure whether they allow multiple transactions per day

http://www.ukpayments.org.uk/faster_payments_service/value_limits/