Direct Debit to myself?

retiredin2011

Can I set up a direct debit to myself?

I know I can set up a standing order to another bank's account from my current bank but what about a direct debit?

grumbler

No you can't. Some banks used to do this for you, mainly for funding your saving account from your current account in another bank. Don't know if any still do this now.

YorkshireBoy

grumbler wrote: »

Some banks used to do this for you, mainly for funding your saving account from your current account in another bank. Don't know if any still do this now.

Quite a few do...

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

McKneff

What's the diffference if either of them would be going to you.

Hominu

McKneff wrote: »

What's the diffference if either of them would be going to you.

It allows you access to bank accounts which require X amount of direct debits? For example, Halifax & Santander.

innovate

Hominu wrote: »

It allows you access to bank accounts which require X amount of direct debits? For example, Halifax & Santander.

Of course it wasn't intended to be used for this purpose. It is predominantly so you can "pull" money into one of your savings accounts. This is particularly useful for Building Society accounts where you don't necessarily have a sort code and account number for your own savings account.

Anthorn

innovate wrote: »

Of course it wasn't intended to be used for this purpose. It is predominantly so you can "pull" money into one of your savings accounts. This is particularly useful for Building Society accounts where you don't necessarily have a sort code and account number for your own savings account.

These days some Banks and Building Societies have a nominated external account for savings accounts which is used to move money between the accounts and they have a direct debit authorisation at the bank. For example when you move money from Bank to BS the BS does it by Direct Debit and when money is moved from BS to Bank it's done by BACS or Faster Payments.

The first time I saw this was at ING Direct now sold to Barclays and Newcastle BS also have nominated external account.

Hominu

innovate wrote: »

Of course it wasn't intended to be used for this purpose.

Indeed, some banks use it to make things easier for the customer. Instead of them having to enter (correctly) a sort code, account number and perhaps a long reference string, its far easier to "pull" the amount direct from your current account. Of course, you still need to enter your sort code and account number correctly.

I think savings account providers which allow online DDs to be setup should have some kind of checking that you actually own the account and you've typed the numbers in correctly. For example, make a deposit of £0.01 with a unique reference number and get the person to type in this reference to prove they have access to the account entered. I agree its more numbers, but for most it'll be copy and paste.