Standing orders on pay day

dzug1

If it is a standing order just telling the bank to change the date would work - though the agency may kick up a fuss when they notice


If it's actually a direct debit that won't work as the agency controls the date

robatwork

Don't risk it.

It's also not reasonable to move into a place that you aren't paying for.

Either move a week later or borrow the money (from a family member?) just for a couple of days.

Perhaps also look into the current account with the lowest arranged overdraft rate, and work on that buffer....

Herbalus

16th August is a Saturday, which means an SO you set up for then (and it is you who sets a SO with your bank - the agency has no control over it) will be paid on Monday 18th. If you want to pay your rent by SO, you'd need to do it a few days before the 16th to ensure that it's been paid by the 16th.

I too can see problems ahead for you. I'd delay moving by a few days so you can pay the rent, and then work on building up a buffer.

johnk

YorkshireBoy wrote: »

SOs, whilst using the FP system, are not sent on non-working days. Most (all?) banks will send the payment on the next working day. So if Good Friday falls on the 16th then your payment won't arrive until Tuesday 20th...4 days late! Even if it falls on a Saturday, your payment will be 2 days late.

If the income is on 20th, so will be the outgoing rent by SO. So it is still the same-day in/out case, right? If the bank can try again at 3:30pm, then it should be OK?


I'm also interested in this question, as I have SO set up for dormant (Halifax Reward) account. At the moment, it's one day apart between in and out. But I am not sure what should be the best practice.

cifpower

A recipient of a standing order does not know if you cancel it. It is not like a direct debit. Most banks send standing orders via Faster Payments. So why not fill in a standing order mandate if so requested, cancel it then submit payment manually using online banking after your salary reaches your account? This will be sent faster payments anyway and the agency's bank will receive funds same day.

MoneyWorries2014

Hi. I spoke to my bank and the agency, and I think it will be fine.

The standing order is for the 16th of each month-not two days before like some of you said could happen. The money will always come out on the 16th and it will be a FP. If the 16th is a weekend day, the payment will come out on the next working day, so on the Monday. Whereas I get paid before the 16th if the 16th is a weekend day, so that's a reassurance.

I have £600OD facility, so I guess I just need to make ensure to have an extra £700 in there to cover any potential issues, although the bank has reassured me it won't happen (but I don't trust them 100%) because of the timings when they take the money out, etc.

I didn't understand the comment about it not being unreasonable to move to a place I'm not paying for. We're paying a month in advance, and the SO will begin from 16th September, so it's all paid until then.

Thanks for your help.