Changing standing order dates for reg savers (HSBC & M&S)

bondyy

Afternoon all,

I'm wondering if someone can advise whether I'm allowed to change the standing order dates for the HSBC and M&S regular savings accounts. I'm looking to move the payments to the 1st of the month for both.

I've had a careful read through the T&Cs and can't see anything prohibiting changes of date on the standing orders, except that the HSBC account says the first standing order payment must be at least 1 month after account opening. So presumably I can change the M&S date at any time, and the HSBC date as long as the first standing order payment has already gone through...

The only reason I ask is because I tried to change the HSBC standing order date over the phone last week and was told it had to be paid on the same date each month. I don't think that's right though...

B

InsideInsurance

Do you have to make a deposit each month? Are you depositing the maximum allowed amount each time?


Assuming the above two answers are yes then the term is probably implicit in the contract on the basis that if you delay the next payment until the 1st then you havent made a monthly payment but a 6 weekly one (or such) and if you pull a payment forward then you will have paid more than you are allowed to within the month.

Does it define monthly at all in the terms?

meer53

First Direct regular saver standing orders can't be changed, i would assume M & S and HSBC are the same as they're all the same bank in effect.

colsten

bondyy wrote: »

I'm looking to move the payments to the 1st of the month for both.

May I ask why you want to do this?

10pence

The dates cannot be changed but the amount can, and with HSBC you could make up the shortfall in payments - not sure of FD or M&S. It's down to how the interest is applied to the account and what you signed up for.

If the OP has miscalculated their budget they could in theory reduce the SD amount and then transfer in the shortfall later in the month. This will have a minor affect on interest and less than if you decided to pay the shortfall in one larger payment near maturity.

bondyy

InsideInsurance wrote: »

Do you have to make a deposit each month? Are you depositing the maximum allowed amount each time?


Assuming the above two answers are yes then the term is probably implicit in the contract on the basis that if you delay the next payment until the 1st then you havent made a monthly payment but a 6 weekly one (or such) and if you pull a payment forward then you will have paid more than you are allowed to within the month.

Does it define monthly at all in the terms?

Yes - one each month (though I can't see where a "month" is defined)
Yes - I'm depositing the maximum amount

colsten wrote: »

May I ask why you want to do this?

So that if you start the regular saver on the 28th, then make the first standing order for the 1st of the next month you effectively get 2x the max monthly deposit in at the start. The interest is calculated daily so you'd maximise your interest this way

meer53

But you can't start it on the 28th and then make another payment on the 1st ? The standing order is fixed on the day you open the account. You can make an additional payment if you don't make the full monthly one.

colsten

bondyy wrote: »

So that if you start the regular saver on the 28th, then make the first standing order for the 1st of the next month you effectively get 2x the max monthly deposit in at the start. The interest is calculated daily so you'd maximise your interest this way

Even if it was allowed by the T&Cs and by the systems, how many pence are you expecting to make from this?

Ed-1

bondyy wrote: »

Afternoon all,

I'm wondering if someone can advise whether I'm allowed to change the standing order dates for the HSBC and M&S regular savings accounts. I'm looking to move the payments to the 1st of the month for both.

I've had a careful read through the T&Cs and can't see anything prohibiting changes of date on the standing orders, except that the HSBC account says the first standing order payment must be at least 1 month after account opening. So presumably I can change the M&S date at any time, and the HSBC date as long as the first standing order payment has already gone through...

The only reason I ask is because I tried to change the HSBC standing order date over the phone last week and was told it had to be paid on the same date each month. I don't think that's right though...

B

Right, from experience:

The First Direct standing order can't be changed full stop.

The HSBC and M&S terms and conditions are the same, however how they enforce/interpret them is different.

The M&S standing order can be deleted and a new one set up with a different date (this is explicitly allowed in the terms), but they will bounce any payment made that is not on the same date as account opening (when I queried this with them through a complaint, they said that's their policy!).

The HSBC standing order, likewise, can be deleted and a new one set up, and from experience they allow payments to stand if they are made on a different date to account opening - so with HSBC you can open an account at the end of a month, delete the standing order and set a new one up to go out on 1st, thus maximising your interest.

colsten

Same Q to you, Ed-1: how many extra pence (a year) have you made/are you making from this?

Jsscmm

colsten wrote: »

Same Q to you, Ed-1: how many extra pence (a year) have you made/are you making from this?

For hsbc, if you could do it in one day, it would be 6% of 250, minus a day, pre tax. So a little under £9 if hr tax.

I really need to check those numbers as that feels wrong though!