Active Direct Debit?

SallyG

Why do ?all banks that entice you to switch current accounts by offering good interest rates require you to have some direct debits - what difference does it make for them?

eskbanker

Because they're pitching these products at people using them as genuine current accounts and feel that it's worthwhile to make token gestures to hinder those wanting to (ab)use them as savings accounts.

Ourfamilyxx

Hi everyone,
So to clarify, I have just set up my direct debits and money won't be withdrawn until next month. I have logged on to my bank account and they are set up there, 'next payment' field says 'unknown'

So I'm wanting to take advantage of the £40 quidco cashback plus £150 coop switching offer. Will this be classed as ACTIVE direct debits? From the replies above, I'm thinking yes?
I want to make sure everything is right as I don't want to throw away £150.

TIA.

LXdaddy

I would wait until a payment has occurred. That will clearly indicate it is active.

djpailo

eskbanker wrote: »

Because they're pitching these products at people using them as genuine current accounts and feel that it's worthwhile to make token gestures to hinder those wanting to (ab)use them as savings accounts.

I don't think the banks care if you use the current accounts as savings accounts. I've stated on many applications that this is what I intend to use it for and, myself personally, I've not run into any problems.

teddysmum

I bank with the Co-op anyway, but lost money on opting for internet banking as our water rates were being paid over 10 months with two months break. (The person who helped me set up mistakenly checked my list of DDs and counted water rates as eligible, when it was not for two months, one of which was my first month in the contract).


I suppose that the water rates DDs would not be counted as active, during the two no payment months; hence no bonus paid for those months.(Soon sorted after a call to Severn Trent who recalculated so the payments go out every month).

eskbanker

djpailo wrote: »

I don't think the banks care if you use the current accounts as savings accounts. I've stated on many applications that this is what I intend to use it for and, myself personally, I've not run into any problems.

Although my comment was from over a year ago, the point still stands - yes, they know that some people will use these as savings accounts but they're marketed as, and intended for use as, current accounts. Therefore, DD requirements are unlikely to be less onerous for those using them as intended, whereas some savers will think twice about using current accounts for saving if they have to jump through some hoops.

There's a thread from today filled with comments from such people....

Ourfamilyxx

Thank you for your replies. I actually called The Cooperative Bank to ask to clarify and they indeed confirmed that they deem an active direct debit as one that has already had money withdrawn.
So that leaves me waiting a few more weeks until I can switch.

I just hope the offer is still available for me and my husband to switch (separate accounts) and hope to pocket £150 plus £40 quidco cashback each!!

skyepark

I see that PayPal payment isnt seen as active on coop but is a valid dd on Halifax. All these hoops...

badger09

skyepark wrote: »

I see that PayPal payment isnt seen as active on coop but is a valid dd on Halifax. All these hoops...

What do you mean? Where do you see that?