Savings accounts deposits by Direct Debit? UPDATED 1 December 2014 at 9:28PM edited 15 April 2017 at 11:01PM in Savings & investments 381 replies 209.6K views

YorkshireBoy

SephirothXI wrote: »

Been reading through the forums but I am still a little confused.

I understand that to open say a Santander 123 account I need to pay in at least £500 per month (my salary) and 2 direct debits.

I also understand that Tesco's savings account is a good bank for direct debit payments. But that's only one.

Is it possible to have two direct debits from the same Tesco savings account or do I need a second Tesco account? I'm not sure why Tesco would let me have two accounts, or do people do it in other people's names (say their partner?)

I want a Santander 123 account but I don't pay my bills directly so have no direct debits like that. I also don't have a partner I can use.

You need two Tesco savings accounts...I use an Internet Saver and an IASA, but I understand 2 of the same (either Internet Saver or IASA) will do.


The DDs don't have to pull each month, merely be set up. Just make sure you pull a couple of DDs through the year to ensure the DDIs don't lapse under the dormancy rules.

SephirothXI

Thanks, good information. Got to wonder why I didn't do this years ago.

Probably going to pull my money out of my ISA and go the current account route since ISA rates this year are even worse than last. Though I do have over £20k in my ISA so this isn't the only solution. I don't mind pulling it out as it's a short term thing - until I buy a house.

G_M

Can one do the same thing using a Tesco current account? I have a T savings account with £1 and a DD, but figure it would make sense to close it, put £3K in a T c/a and set up replace the DD.....?

Archi_Bald

G_M wrote: »

Can one do the same thing using a Tesco current account? I have a T savings account with £1 and a DD, but figure it would make sense to close it, put £3K in a T c/a and set up replace the DD.....?

No. It makes no sense at all.

You can set up to two Tesco current accounts (and earn interest in them if you meet their terms), but like any other current account, Tesco current accounts cannot be used to pull money from other current accounts.

Doc_N

Useful thread - thanks for the contributions (and unsurprised to find YorkshireBoy in here!).

Tesco savings accounts are the most useful, with their options for more than one DD, but I'm guessing from reading the thread that there's nothing else still available to new customers offering that sort of flexibility?

I'm looking ideally for another equally flexible account from which to create the second DDs normally required on a paid switch - looks like AA or the Post Office are the only (less flexible) options still available?

Or has anyone found anything better lately?

Doc_N

Just an update (someone will correct me if I'm wrong):

Intelligent Finance - just managed to resurrect my old current account with them, but there's apparently no way to set up a Direct Debit for deposits to be made in from another account.

badger09

Doc_N wrote: »

Useful thread - thanks for the contributions (and unsurprised to find YorkshireBoy in here!).

Tesco savings accounts are the most useful, with their options for more than one DD, but I'm guessing from reading the thread that there's nothing else still available to new customers offering that sort of flexibility?

I'm looking ideally for another equally flexible account from which to create the second DDs normally required on a paid switch - looks like AA or the Post Office are the only (less flexible) options still available?

Or has anyone found anything better lately?

I can't help with any accounts similar to Tesco savings accounts, but if you simply need 'active' DDs, rather than 'monthly paying' DDs, PayPal works well.

Too much of a faff for me to use it for monthly paying DDs, as there is no way to automate it, so manual intervention is required

colsten

Just one of each of the two kinds of instant access non-ISA savings accounts Tesco offers will allow you to satisfy all currently known requirements for DDs. Why look any further?

http://www.tescobank.com/savings/flexible/

As and if these no longer suffice, you will probably have to pay for anything that does regular DDs. I'll cross that bridge if we ever come to it.

masonic

badger09 wrote: »

Too much of a faff for me to use it for monthly paying DDs, as there is no way to automate it, so manual intervention is required

Don't any charities accept a monthly donation by Paypal? If not, I'm sure I've seen websites that you can support with a monthly Paypal donation and there will surely be things you can subscribe to and pay monthly by Paypal.

YorkshireBoy

Doc_N wrote: »

I'm looking ideally for another equally flexible account from which to create the second DDs normally required on a paid switch

Why not use Tesco for those too? I've used them for Nationwide RAF whilst still using them for Halifax Reward (x3), Club Lloyds, and Santander.


Do you by chance have an old Egg Savings account, or a YBS offset mortgage?