Buying Premium bonds by direct debit

BungyW

I spend a regular amount per month from Bank A by direct debit for the purchase of Premium bonds. Of course I have a Premium bond account too.

I want to purchase a similar amount of Bonds to be deposited in the same account by DIRECT DEBIT form BUT from Bank B.

So I go along to bank B (with which I have several accounts) and speak to the manager asking him "How do I go about this?" I am told that it must be initiated by NS&I and not the bank.

I go home and telephone NS&I asking the same question and am told it must be initiated by Bank B. I will omit the words that I said in reply.

I feel disinclined to return to the bank so you can see that I would like advice from someone who knows how this simple operation is carried out. Neither end of the chain appears to be able to advise me . I must stress that this monthly payment must be DIRECT DEBIT for this is to enable a new Santander 123 account to be opened and pay interest.

Any advice would be welcome and thank you in advance.

BungyW

Drp8713

Im pretty sure the NS&I website says you can only buy by standing order not direct debit.

YorkshireBoy

Drp8713 wrote: »

Im pretty sure the NS&I website says you can only buy by standing order not direct debit.

That was my initial thought too, but two things would seem at odds with that:


1. OP already deposits from account A by DD, and


2. A google search says you can buy more by DD if you already hold some.


OP, your question is really do NSandI allow two separate DD mandates, or just one?


If it turns out you are only allowed one, there are other ways (excluding gambling ) of meeting Santander's DD requirements. And don't forget, the DDs don't have to claim each month...merely be set up (but watch out for dormancy).

CLAPTON

for a DD then the 'retailer' must initiate the DD : so your bank can't set up a DD for you to purchase premium bonds: it must be done via NS&I

However, I wasn't aware that Premium Bonds offer a regular purchase facility by DD

Sally22_2

Are you sure you do it by direct debit already and not standing order? Here is a link to the form to set up a standing order, and it says your bank must set it up, not NS&I

http://www.nsandi.com/files/published_files/asset/pdf/premium-bonds-standing-order-form.pdf

westy22

A Standing Order is originated by a bank as it 'pushes' money to another account.

A Direct Debit is originated by a recipient organisation (who must be authorised to raise DDs) as it 'pulls' money from a person's bank account.

I suspect that the OP currently has a monthly SO payable to NSI from his account with Bank A.

PeacefulWaters

Anybody else excitedly seeking the links to this new direct debit opportunity?

BungyW

Thanks for all the sensible replies. I will verify tomorrow the possibility that the other purchase is a Standing Order.

As I had spoken directly to NS&I I would have thought that the person at the other end would have said "No Premium Bonds by DD!" But then again..........?

YorkshireBoy

BungyW wrote: »

Thanks for all the sensible replies. I will verify tomorrow the possibility that the other purchase is a Standing Order.

"Other purchase"?

Are you saying you're now not sure if you currently pay by DD or SO from bank A?

Or by "other purchase" do you mean the proposed additional payment from bank B?

BungyW

I have just been online to my account at Bank A and discovered that they are not DD but SO so I have misled you all from the start. For that I must apologise and thank you for the time spent. I would have thought that one or the other, Bank or NS&I, would have had stated so.

Thank you all again.

YorkshireBoy

BungyW wrote: »

For that I must apologise...

And also to the NS&I employee you spoke to?...

I will omit the words that I said in reply.