'Cut off time' to deposit cash to prevent going over overdraft?

socks_uk

I've messed up a bit this month with my direct debits with Nationwide due to Bank Holiday. I wasn't expecting any direct debits to come out of my account on Monday but when I looked at my bank account yesterday direct debits had come out both Monday and yesterday which means that I was late transferring the money for yesterday's payments.

When I banked at RBS I knew that if I deposited money by 3pm on the same day, all direct debits were covered but I went into Nationwide today I was told that the money should be in the bank before midnight on the day before they are due to come out.

I'm gutted as I'll now be charged for going over my overdraft! Has anyone else come across this too? I've certainly learned my lesson but I was hoping the lady in Nationwide had told me wrong.
Any thoughts?

rb10

Nationwide has two cut-off times:

- If a payment is not paid in the early hours of the morning due to lack of funds, and you pay in money before 2.30pm, then it'll be paid at 2.30.

- You won't pay overdraft interest (FlexAccount) or the daily unarranged overdraft usage fee (FlexDirect or FlexPlus) if you pay money in before 8.15pm on the day of the transaction.

From your post, it looks as though they made the payment, and you then paid the money in later in the day. In that case, you'll be charged the fee for a paid transaction (this varies between £0 and £15, depending on your account type - see here).

If this is the first time you have been charged, then you can phone them up and they will refund the fee.

socks_uk

The transactions showed as Tuesday on my account overview and I paid the money to cover them at 7:30am yesterday but apparently this was too late.
I wonder why it is so different to what I was used to with RBS.

rb10

socks_uk wrote: »

The transactions showed as Tuesday on my account overview and I paid the money to cover them at 7:30am yesterday but apparently this was too late.

Ok, I didn't realise you were a whole day late. If this is your first time then they'll refund it.

socks_uk wrote: »

I wonder why it is so different to what I was used to with RBS.

Because they are different providers? Each bank/building society has a different charging structure.

You'd have been charged with RBS if you were overdrawn under this scenario.

KeepFighting_2

Just to point out that it was a Bank Holiday on Monday therefore no processing actually takes place. DDRs an payments are usually piad out on the next working day. If you have no overdraft arrangment with Nationwide then they will unpay payments that will put you back into credit. You also have to be careful to ensure that you have cleared funds in the account. One of the reasons for the differences is that teh Nationwide is a Building Society and they are not direct members of the payments systems so they have harsher deadlines and longer clearing times for cheques. I would sugges tthat you phone and explain if this is the first time and you cover the account on the day then you will probably get a refund. I know this becasue iot happend to me a coupel of years back and they repaid my fees.

socks_uk

rb10 wrote: »

Ok, I didn't realise you were a whole day late. .

Sorry, just to clarify... some of my direct debits showed the date of Bank Holiday Monday (there was enough money to cover them) and 5 more came out Tuesday of which 3 of them took me over my arranged overdraft. At 7:30am Tuesday morning, which was when I saw my direct debits were showing, I transferred more than enough money to cover them.

It was only when I asked at my Nationwide branch that I found out that transferring money from one Nationwide account to another Nationwide account on the day that direct debits show on your online banking is too late. She said you must have the money in your account before midnight on the day BEFORE they are due to be taken. With RBS it is by 3pm on the SAME day.

I'll give them a ring later to see if I will be charged and if so, ask for it to be refunded.

Thanks for your help.

pqrdef

socks_uk wrote: »

At 7:30am Tuesday morning, which was when I saw my direct debits were showing

Weren't you expecting that?

socks_uk wrote: »

It was only when I asked at my Nationwide branch

What would they know? They only work there.

Ignore them, you'll be fine.

DDs showing as paid aren't necessarily paid. They'd be stalled until the afternoon. At that time, if the money hadn't appeared, you'd be hit with a charge, and the DD would either be paid as an unarranged overdraft, or refused and shown as reversed. But the money had appeared, end of story.

rb10

KeepFighting wrote: »

One of the reasons for the differences is that teh Nationwide is a Building Society and they are not direct members of the payments systems so they have harsher deadlines and longer clearing times for cheques.

Sorry, but this is absolute rubbish.

1) Nationwide is a direct member of BACS, the clearing system, in exactly the same way as the banks are.

2) What are these "harsher deadlines" that you mention? Their deadlines for when you have money paid in by are broadly in line with any of their competitors.

3) They don't have longer cheque clearing times. All banks and building societies (even those that do not clear their own cheques) have to adhere to the 2-4-6 system.

socks_uk

Thanks everyone... I'm just so used to the way RBS worked that I thought depositing the cash on the same day via internal online transfer and I would be OK. I'll get into the swing of it soon.