WARNING bank charges

tezz7628

have been with tsb since childhood

have a current acount used to pay my household bills with
deposit £400 on the first of each month from another account to pay my bills

the bills start being paid out from the first of the month

about 3 months ago received a letter from bank to say being charged for being overdrawn

overdrawn ammount caused by standing order for £100 council tax

went to bank to plead my case they let me off for this ammount

thought everything had been sorted

but it's happened again

a standing order for £15 caused me to have to pay the fee of £10

MY WARNING IS:-

the account is in credit by £400 at the beginning of the month

as far as I can tell
standing orders and direct debits have different time when they are paid
and bank holidays cause confusion as well

dunstonh

standing orders and direct debits have different time when they are paid
and bank holidays cause confusion as well

Correct. For payments out, if the payment date falls on a weekend or bank holiday then it will go out the next working day. Not before. So, you should never incur bank charges due to non working days.

Dogger69

The money needs to be in the account (at least) the day before bills come out.

tezz7628

if i'm understanding it correctly

the account is credited on the 1st of the month but if that is a bank holiday it could be for example the 3rd and that is by standing order

so why is an ammount being taken by standing order causing me to be overdrawn

meer53

tezz7628 wrote: »

if i'm understanding it correctly

the account is credited on the 1st of the month but if that is a bank holiday it could be for example the 3rd and that is by standing order

so why is an ammount being taken by standing order causing me to be overdrawn

If you are crediting your account by standing order from another account, bank holidays and non working days will delay your standing order. Take this into account when setting up the standing order and make sure the money credits your account the day before any of your payments are due to debit. Having a standing order crediting your account on the same day payments are due to leave isn't a good idea.

dunstonh

the account is credited on the 1st of the month but if that is a bank holiday it could be for example the 3rd and that is by standing order

Money going in by standing order will be held up as the payment out from the sending account will be delayed.

tezz7628

but my concern is the money is credited by standing order

why do the same rules not apply to money going out by standing order

ie the bank holiday delay

dunstonh

but my concern is the money is credited by standing order

Which is not very efficient as the account it leaves from will be delayed due to non-working days. So, the receiving account wont get it until later either.

why do the same rules not apply to money going out by standing order

Because what you are asking them to do here is pay you before they have debited the account it is coming from. i.e. create money out of thin air. It cannot be done.

tezz7628

what I'm not understanding here is

the payment into the account is delayed in my example till the 3rd because of the bank holiday

but why does the same rule not apply to the withdrawal payment from the account, the payment should be delayed till the 3rd

both are standing orders and should therefore follow the same rule surely

Wywth

Standing charges are an instruction to pay money from Bank A to Bank B. So the money will be debited from Bank A on the day the instruction asks ... but it takes time to make it to another bank account.

Direct debits are an authorisation for an Originator (like a utilty supplier, local council, etc) to collect money from your account, so it leaves your account on the day specified.

(In both cases, the date will be delayed to the next working day if the date does not fall on a working day)

Fiona6367

dunstonh wrote: »

Correct. For payments out, if the payment date falls on a weekend or bank holiday then it will go out the next working day. Not before. So, you should never incur bank charges due to non working days.

Not quite true. If there is a bank holiday or the payment is due on the weekend my bank takes the money the friday before. It will depend who you bank with.