New Lloyds Club current account

Sue_de_Nym

I am quite confused now, are people here confusing Direct Debits with Standing Orders ?
The following defines the two:-

A standing order is a regular payment that you can set up to pay other people, organisations or your other bank accounts. You can amend or cancel the standing order as and when you like.
A Direct Debit can only be set up by the organisation to which you're making the payment. Normally, you sign a mandate that gives the company permission to take funds from your account in an agreed way - like a monthly gym membership or your mobile phone bill. It normally confirms who's receiving the payment, the account to be debited, the amount and the dates of the payment. You‘re protected under the Direct Debit Guarantee scheme so that any amount debited in error is refunded immediately.

I have just spoken with a Lloyds advisor and been told unequivocally that the transactions must be DD's, and Standing Orders are not acceptable.


Am I missing a trick here, cause I can't see how to do it just now.

KTF

You open up a savings account with Tesco (for example).

When you open up the savings account it creates a 'link' (via Direct Debit) to a current account to allow you to pull/push money to/from the savings account.

You then open up a second savings account with Tesco (or other instant access account provider that also lets you create a link via DD to a current account).

Then you have the 2x DD on your Lloyds account and you manually (or automatically) pull £1 to each savings account from your Lloyds account each month to satisfy the 2x DD must pay out requirement.

Sue_de_Nym

Thanks for this and please excuse my ignorance on matters fiscal but until recently savings were not a concept with which I was very familiar, but it is becoming a little more clear.

I have an instant access savings account with Virgin Money but the transfer methods stated there are either BACS or CHAPS. Can these be construed as DD ?

KTF

Sue_de_Nym wrote: »

I have an instant access savings account with Virgin Money but the transfer methods stated there are either BACS or CHAPS. Can these be construed as DD ?

No, they are not DD as BACS or CHAPS is an 'ad hoc' payment mechanism. For it to be a DD it has to show up under the Direct Debits section of the Lloyds online banking.

anna42hmr

Sue_de_Nym wrote: »

Thanks for this and please excuse my ignorance on matters fiscal but until recently savings were not a concept with which I was very familiar, but it is becoming a little more clear.

I have an instant access savings account with Virgin Money but the transfer methods stated there are either BACS or CHAPS. Can these be construed as DD ?

no they don't, for a list of saving accounts that can be used to create these direct debits see :

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

jennifernil

Only certain banks allow deposits into accounts to be made using a direct debit, Tesco being one of them, and the easiest to open. That is why most on here are using Tesco for this purpose.

Otherwise you will need to move DDs from another account or set up new DDs to, for example a charity you wish to donate to, or for a new payment you may need to make.

Sue_de_Nym

Thank you all for your help and advice, and I believe, or at least hope, I have now "cracked" it.
I was going to attach a pic to illustrate my plan but as a newbie it seems I am barred from doing so, nvm.

Herbalus

Does anybody know what will happen in the first month if the DDs are not paid? I assume there will be no interest, but for argument's sake, what happens if an account is opened in the middle of the month, as there won't be enough time to get a DD transferred and paid before the end of the month?

kar999

No interest will be paid..... From their T&C's

Credit Interest: We will pay interest on a credit balance in your account for that billing period as long as you have a minimum of two different direct debit mandates paid from your account during the calendar month. We will not pay credit interest if this condition is not met.

zerog

Herbalus wrote: »

Does anybody know what will happen in the first month if the DDs are not paid? I assume there will be no interest, but for argument's sake, what happens if an account is opened in the middle of the month, as there won't be enough time to get a DD transferred and paid before the end of the month?

Yes this is tricky. I think it would be safest to just leave the account empty until the 1st of the month if you can't get DDs set up in time.

I just tried to get a CC and mobile phone to move their DDs to my Club Lloyds, but they said the April DD would stay on the old account, so it was off to Tesco to open a second account and they can get a DD taken on the 18th.

So people opening accounts by the 20th of this month should still be fine, as long as they have 2 Tescos or can open a second one instantly.