Direct Debits

slinga

Do banks earn money through Direct Debits?

If not what's with the requirement for 2 or more DDs with accounts?

Stevie_Palimo

As far as I am aware the direct debit takes 2-3 days from point of request so there may be some money earned on it but never heard of a bank requiring 2 dd's on an account and I have 7 bank accounts with a few that have single dd's on them.

saintalan

Probably to stop most using it as a savings a/c or make life difficult for those that persist.

That's what we do here...persist!

CLAPTON

slinga wrote: »

Do banks earn money through Direct Debits?

If not what's with the requirement for 2 or more DDs with accounts?

assuming you are talking about a/cs like santander 123

then no, they don't directly make money form a DD

however they are trying to encourage people to use their a/c as a 'main' or only account rather than simply a savings a/c

slinga

Stevie_Palimo wrote: »

As far as I am aware the direct debit takes 2-3 days from point of request so there may be some money earned on it but never heard of a bank requiring 2 dd's on an account and I have 7 bank accounts with a few that have single dd's on them.

I understood Santander require 2 DDs and don't Lloyds Club account require 2 DDs???.

slinga

CLAPTON wrote: »

assuming you are talking about a/cs like santander 123

then no, they don't directly make money form a DD

however they are trying to encourage people to use their a/c as a 'main' or only account rather than simply a savings a/c

Thanks. So if I wanted to use Santander as a savings account only, ie. get the 3% on say £20k would I have to set up 2 DDs???

Archi_Bald

slinga wrote: »

I understood Santander require 2 DDs and don't Lloyds Club account require 2 DDs???.

slinga wrote: »

Thanks. So if I wanted to use Santander as a savings account only, ie. get the 3% on say £20k would I have to set up 2 DDs???

Yes.

Refer to the current T&Cs for details.

slinga

Archi_Bald wrote: »

Yes.

Refer to the current T&Cs for details.

Have done but find them ambiguous.

Is it 2 DDs to get full 123 stuff or two DDs if I only want the 3%

talexuser

Halifax also require 2 dds to get your £60 a year.

saintalan

2 DDs gets you the applicable interest ( based on balance)

DDs with appropriate organisations gets you the 123 stuff (cashback).

greenglide

But Santander also pay cashback on Direct Debits on the 123 account.

3% for telephone, broadband and phone / mobile phone bills,

2% on council tax, water rates

1% on others.

Who pays for this?

3% off SKY, phone bill and mobile phone is great. 2% off council tax and water rates aint bad!

More than offsets the monthly charge for the account - £2.00?