Savings accounts deposits by Direct Debit? UPDATED

Westie983

Savings account

Further up someone was asking about someone inputting the wrong details into their account and pulling money from someone else's account, but as they send letters to you, you would know if this had happened.

tebthereb

colsten wrote:

There is a 100% chance of finding out if somebody deliberately or accidentally uses your bank details - you just check your bank account for any unknown DDs.

Better still, the Direct Debit Guarantee gives you a 100% guarantee that you can reclaim any money wrongly taken from your account.

100%? Hmm... not sure about that. Even if everyone checks their bank accounts, things can be missed. To err is human.

Anyway, whilst the majority of people on MSE forums might be financially savvy and checking their accounts for rogue direct debits, the majority of people with bank accounts are probably checking infrequently or not at all.

Westie983 wrote: »

Savings account

Further up someone was asking about someone inputting the wrong details into their account and pulling money from someone else's account, but as they send letters to you, you would know if this had happened.

The letter that is sent out by Tesco, after setting up a linked account - the "linked account" being the one you are calling funds from - does not give the linked account details though when using the Tesco internet saver. It only gives the Tesco call account details if I recall correctly.

My experience seems to be the same as a few others that have posted; the bank I have called from send nothing.

I have been setting up a lot of calls from my wife's accounts. It would appear this is not entirely legit of me to have done this, oops, as I now know that the T&Cs say the account I call from should be my own. However, I had never experienced any problem in actually doing it - hence my concerns that this could be abused.

Therefore, it felt like Tesco and the banks they are calling from do not check that the names match.

Having said all that, for the first time when setting up a DD call recently I had a message from Tesco online saying they could not proceed and would have to contact me. I then received a letter saying they want evidence of the name on the account I am calling from. So maybe they kick in with further checks if you have an unusual amount of DD calls setup.

colsten

Westie983 wrote: »

Savings account

Further up someone was asking about someone inputting the wrong details into their account and pulling money from someone else's account, but as they send letters to you, you would know if this had happened.

If you can tell from the Tesco letters which sort code and account number you specified for the money to be pulled from, you are a psychic. As the letter doesn't actually list that information.

The information is, however, available to view online - immediately after you entered & confirmed it.

colsten

tebthereb wrote: »

100%? Hmm... not sure about that. Even if everyone checks their bank accounts, things can be missed. To err is human.

Fact remains that everyone has a 100% chance to check what DDs they have on their accounts. If they don't wish to make use of that chance, that's entirely their own problem.

tebthereb wrote: »

Anyway, whilst the majority of people on MSE forums might be financially savvy and checking their accounts for rogue direct debits, the majority of people with bank accounts are probably checking infrequently or not at all.

If that is so, and it may well be so, it is not caused by Direct Debits.

LXdaddy

tebthereb wrote: »

The letter that is sent out by Tesco, after setting up a linked account - the "linked account" being the one you are calling funds from - does not give the linked account details though when using the Tesco internet saver. It only gives the Tesco call account details if I recall correctly.

My experience seems to be the same as a few others that have posted; the bank I have called from send nothing.

I agree - the confirmation letters from TESCO are from the PULLING organisation to the "PULLER". The holder of the account being pulled from does not get any information from the bank that will be SENDING the money.

I have the latest letters in front of me and they quote my Tesco account number and nothing identifying the linked account. And like you I get two letters each time I set one up because I check the box to link it to each of my savings accounts at Tesco

tebthereb wrote: »

I have been setting up a lot of calls from my wife's accounts. It would appear this is not entirely legit of me to have done this, oops, as I now know that the T&Cs say the account I call from should be my own. However, I had never experienced any problem in actually doing it - hence my concerns that this could be abused.

Therefore, it felt like Tesco and the banks they are calling from do not check that the names match.

Having said all that, for the first time when setting up a DD call recently I had a message from Tesco online saying they could not proceed and would have to contact me. I then received a letter saying they want evidence of the name on the account I am calling from. So maybe they kick in with further checks if you have an unusual amount of DD calls setup.

When I first created my two Tesco saving account I tried to set up links to my accounts, accounts in our joint names and my OH's accounts. The ones to the accounts not including my name did not get set up. I think that there was a message on screen but no follow up letter - they just didn't get set up. So we created Tesco saving accounts in OH's name and they all work OK now.

tebthereb

colsten wrote: »

Fact remains that everyone has a 100% chance to check what DDs they have on their accounts. If they don't wish to make use of that chance, that's entirely their own problem.

Well, yes, I do not really doubt that typically 100 out of 100 people have a chance to check their DDs. There will be a percentage of people that will not spot an issue through little or no fault of their own; due to number of transactions, the amount, frequency, intellect, confusion, whatever.

I suppose my point then, if I have one at all, is that it seems odd to me that the banking system should rely on people spotting errors and then making use of a system for rectifying the error - DD guarantee etc - as this seems a rather reactive system which invites people to try their luck.

colsten wrote: »

If that is so, and it may well be so, it is not caused by Direct Debits.

Yeah I agree DDs are not the cause of people checking their accounts infrequently. I just think that DDs calls could be structured better to avoid a problem in the first place.

LXdaddy wrote:

I think that there was a message on screen but no follow up letter - they just didn't get set up.

I have had loads of messages on screen over time, but my recollection is that I just tried again a little later and it worked and on no occasion did I receive a letter asking for evidence eithe. When I tried recently I went through the same process but it failed the second time; I received one letter in the post asking for more evidence. I will be interested to see if they send a second letter!

When I have a push account in my name in future that requires two DDs I guess I will just use my own Tesco pull account and set up two DDs.

dickdasdedly

I have 3*BOS 2 Tesco CAs and a internet saver as well as other higher interest bank accounts. Sunday night i opened a Tesco instant access account and set up 3DDs from each savings account 6 in total to cover the DDs for the T&Cs of my BOS accounts. It probably took me an hour as 2 out of 3 attempts ended with an error message and it then logged me out. All now set up to begin on 1st July. Tesco s website is probably just feeling the strain. Thanks to this thread, the 5% savings loophole & others threads im making nearly £90 interest a month..:T

JohnRo

dickdasdedly wrote: »

...and set up 3DDs from each savings account 6 in total to cover the DDs for the T&Cs of my BOS accounts.

BOS Classic with Vantage T&Cs don't have a requirement for any DDs to be set up.

All they require is that £1K a month passes through each account and that the account balance stays positive each month to earn interest payments. To get the headline 3% rate maintain a balance between £3K and £5K.

frank777

JohnRo - keep your eye on the ball, don't get caught out in September
http://forums.moneysavingexpert.com/showthread.php?t=5463084

JohnRo

frank777 wrote: »

JohnRo - keep your eye on the ball, don't get caught out in September
http://forums.moneysavingexpert.com/showthread.php?t=5463084

I had missed this, DDs now setup. ta