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

colsten

masonic wrote: »

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.

You probably can but this involves paying a 3rd party. If you want to maximise your every last penny, you want DDs that go into your own pocket.

badger09

masonic wrote: »

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.

Very probably, but there would really be no advantage using PayPal, as the DD to the charity would suffice

Doc N was looking for something similar to the Tesco savings accounts, where any money taken by DD goes straight to an account in his own name

masonic

colsten wrote: »

You probably can but this involves paying a 3rd party. If you want to maximise your every last penny, you want DDs that go into your own pocket.

I suppose it does rather depend on whether you already donate/support/purchase anything on a monthly basis that would accept such payments. Badger is of course correct that many charities would allow you to set up a DD directly anyway, but there are many more options where a direct debit could not be used, but Paypal could.

All rather academic while you can open two Tesco savings accounts though.

Doc_N

Thanks, guys.

Tesco: I was thinking that most banks looking for two DDs to be set up would expect to see payments going out to two different entities, rather than one (Tesco). I have two Tesco accounts, but is that really two different DDs?

PayPal: The downside of having a DD here is that once you've verified your current account (which you have to do first) all payments default to that. I prefer my default to go to Amex for the 1.25% cashback on every transaction.

Egg/YBS offset: Not held. Egg account closed a long time ago - shame that!

Alliance Trust: Not seen this mentioned, but it will allow you to set up DDs.

colsten

Doc_N wrote: »

Tesco: I was thinking that most banks looking for two DDs to be set up would expect to see payments going out to two different entities, rather than one (Tesco). I have two Tesco accounts, but is that really two different DDs?

apparently it is. People have even reported that two DDs at different dates in the same month from a single Tesco account count as 2 separate DDs.

Doc_N wrote: »

Alliance Trust: Not seen this mentioned, but it will allow you to set up DDs.

Lots of investment firms allow money to be pulled in. But most likely from just 1 account. So they are of very limited use, and many of them come with monthly charges a lot higher than what you could make in interest from most current accounts.

masonic

Doc_N wrote: »

Tesco: I was thinking that most banks looking for two DDs to be set up would expect to see payments going out to two different entities, rather than one (Tesco). I have two Tesco accounts, but is that really two different DDs?

They need to be collected under two different reference numbers (which the two different Tesco accounts will fulfil). There may be a point where banks stipulate that the originator needs to be different, but we don't seem to have reached it yet.

PayPal: The downside of having a DD here is that once you've verified your current account (which you have to do first) all payments default to that. I prefer my default to go to Amex for the 1.25% cashback on every transaction.

Yes, it's a pain to manually override it each time, but eBay sellers have to have a verified bank account on file (and often have a second account that doesn't).

Doc_N

colsten wrote: »

Lots of investment firms allow money to be pulled in. But most likely from just 1 account. So they are of very limited use, and many of them come with monthly charges a lot higher than what you could make in interest from most current accounts.

AT allow more than one DD - but I wouldn't recommend it unless you do actually want to invest through an investment trust.

YorkshireBoy

colsten wrote: »

People have even reported that two DDs at different dates in the same month from a single Tesco account count as 2 separate DDs.

I don't remember seeing that posted anywhere? In fact, I'd go as far as to say it wouldn't be possible to count as two separate DDs, because only one DD mandate would reside with the bank...wouldn't it?

colsten

YorkshireBoy wrote: »

I don't remember seeing that posted anywhere? In fact, I'd go as far as to say it wouldn't be possible to count as two separate DDs, because only one DD mandate would reside with the bank...wouldn't it?

I can't on the quick find the posts that said they live with one Tesco savings account for 2 separate DDs, and I haven't tried it myself. I do 1 Tesco, one Egg/YBS myself.

Eco_Miser

masonic wrote: »

There may be a point where banks stipulate that the originator needs to be different, but we don't seem to have reached it yet.

There are, of course, legitimate reasons for one originator to have two DD mandates from the same account: power companies that bill gas and electricity separately for instance.