Savings accounts deposits by Direct Debit? UPDATED

NoodleDoodleMan

That's a fair one !!!

We are tempted to the Co-op Bank's upgraded current account that offers worldwide travel insurance - one of the conditions for rewards is 4 x Direct Debits.

I have three Tesco Internet Savers accounts (one is Joint) and wondered if these would qualify - however I had an unsatisfactory online "Live Chat" with one of their advisers who insisted that only Standing Orders were used to transfer funds from the sending bank to the receiving savings accounts.

I suspect that he/she was unaware that Tesco have the facility to use DDs to collect funds into their savings account - either that or they were doggedly holding to a party line that only SOs were acceptable.

Anyway, cut to the chase - does anybody use Tesco Internet Saver accounts with monthly DD deductions from a Co-op Everyday Extra current account without any issues ?

Another adviser told me that each of these DDs must go to a different organisation/firm - this was later contradicted by yet another adviser who said that any 4 DDs would qualify.

Hope this is clear now !!!

eskbanker

NoodleDoodleMan wrote: »

I have three Tesco Internet Savers accounts (one is Joint) and wondered if these would qualify - however I had an unsatisfactory online "Live Chat" with one of their advisers who insisted that only Standing Orders were used to transfer funds from the sending bank to the receiving savings accounts.

I suspect that he/she was unaware that Tesco have the facility to use DDs to collect funds into their savings account - either that or they were doggedly holding to a party line that only SOs were acceptable.

If your live chat was with Co-op rather than Tesco then yes, ignore them as they won't know Tesco use DDs to fund savings accounts.

NoodleDoodleMan wrote: »

Anyway, cut to the chase - does anybody use Tesco Internet Saver accounts with monthly DD deductions from a Co-op Everyday Extra current account without any issues ?

I use Tesco DDs in qualifying for Co-op's Everyday Rewards scheme - my account isn't an Everyday Extra packaged account but it's the same terms of the Rewards add-on scheme that apply, i.e. http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/everyday-rewards/terms-and-conditions.pdf.

NoodleDoodleMan wrote: »

Another adviser told me that each of these DDs must go to a different organisation/firm - this was later contradicted by yet another adviser who said that any 4 DDs would qualify.

You seem to have been talking to a lot of advisers! As ever, the written Ts & Cs are the place to go rather than relying on anything verbal - unusually these do only state "at least four Direct Debits must be paid from the Nominated Account during that Calendar Month" whereas most such clauses require different DD mandates. I'm pretty sure that a poster on here uses the same DD (i.e. to the same account) multiple times per month which does seem compliant with that wording, but I pay DDs to four different Tesco accounts myself.

Westie983

eskbanker wrote: »

If your live chat was with Co-op rather than Tesco then yes, ignore them as they won't know Tesco use DDs to fund savings accounts.

I use Tesco DDs in qualifying for Co-op's Everyday Rewards scheme - my account isn't an Everyday Extra packaged account but it's the same terms of the Rewards add-on scheme that apply, i.e. http://www.co-operativebank.co.uk/assets/pdf/bank/currentaccounts/everyday-rewards/terms-and-conditions.pdf.

You seem to have been talking to a lot of advisers! As ever, the written Ts & Cs are the place to go rather than relying on anything verbal - unusually these do only state "at least four Direct Debits must be paid from the Nominated Account during that Calendar Month" whereas most such clauses require different DD mandates. I'm pretty sure that a poster on here uses the same DD (i.e. to the same account) multiple times per month which does seem compliant with that wording, but I pay DDs to four different Tesco accounts myself.

My Coop account is used to fund four tesco accounts and is shown on my coop online banking as four seperate DD mandates. I pay two DD on the 1st of the month and the final two on the 21st.

I have been doing this since they launched the reward account and have been given £4 a month for doing so.

I pay the DD out, pay in £800 in (and back out on payday) and do this by logging into internet banking to transfer the money back to where it came from so I meet all the criteria set out in the T&C's

So yes you can use Tesco for all of the DD as long as they are shown as separate mandates on your internet banking.

Westie983

eskbanker

Westie983 wrote: »

So yes you can use Tesco for all of the DD as long as they are shown as separate mandates on your internet banking.

I think you may have missed the point I was making, which was that paying out four separate mandates does of course work (and I do it this way to be on the safe side as it were), but that another poster on here claims to satisfy the Co-op requirement with just one DD mandate, executed at least four times a month. Simply restating that separate mandates work doesn't actually disprove the assertion that you can cover the requirement with one....

NoodleDoodleMan

Thank you both.

That answers my points, I'm obliged. :T

ceredigion

One mandate paying weekly has always worked for me.

Westie983

eskbanker wrote: »

I think you may have missed the point I was making, which was that paying out four separate mandates does of course work (and I do it this way to be on the safe side as it were), but that another poster on here claims to satisfy the Co-op requirement with just one DD mandate, executed at least four times a month. Simply restating that separate mandates work doesn't actually disprove the assertion that you can cover the requirement with one....

my mistake I miss read your post, I thought you were saying can it work with just one company.

Westie983

NoodleDoodleMan

One mandate paying weekly has always worked for me.

I hadn't thought of that.

The Co-op Bank recognises that as four separate DDs ?

Do any of the other "normal suspects" banks accept this type of weekly DD going to one external account to meet their outgoing multiple DD terms and conditions ?

Apologies if this appears as a silly question.

eskbanker

NoodleDoodleMan wrote: »

Do any of the other "normal suspects" banks accept this type of weekly DD going to one external account to meet their outgoing multiple DD terms and conditions ?

Apologies if this appears as a silly question.

As I posted in #313 above, Co-op's wording is unusual and most such clauses require different DD mandates - I'm not aware of any others that work like the Co-op but, as ever, check the actual Ts & Cs before deciding!

YorkshireBoy

With no (published) limit to the number of accounts you can hold with the 'go to' provider for DDs, there's really no need to gamble with one account/4 pulls!