Direct debit foes the same day I get paid

fmlyhm1148

Hello. I get paid the same day a direct debit is due to leave my account. It's a large payment of 156. I can leave the money in there but living expenses will make it difficult. Would it go without any problems?

lee111s

Providing your pay goes in, there shoulnd't be a problem. Can you call and ask to make the DD payment a couple of days later for future payments? I get paid on the last working day of the month and have all DD's set up for the 1st. Makes things much easier for everything to come out on the same day.

agrinnall

Personally I would allow at least 5 days between money going in and DDs going out if the latter is dependent on the former. That caters for 4 non-banking days in a row at Easter and some Christmas periods.

stclair

Banks offer a retry process now, so providing there is cleared funds in your account prior to the retry there will be no issues.

http://www.moneysavingexpert.com/news/banking/2014/08/payment-bounced-youll-soon-have-a-second-chance-to-avoid-fees?_ga=1.111032261.1176107352.1421006420

agrinnall

stclair wrote: »

Banks offer a retry process now, so providing there is cleared funds in your account prior to the retry there will be no issues.

http://www.moneysavingexpert.com/news/banking/2014/08/payment-bounced-youll-soon-have-a-second-chance-to-avoid-fees?_ga=1.111032261.1176107352.1421006420

That's fine if the salary payment simply arrives later in the day than the first try at the DDs. But if it arrives a day later then the OP is stuffed, which is why I'd leave a gap - we can argue about how big that gap should be, but I wouldn't rely on money arriving on a given day.

stclair

agrinnall wrote: »

That's fine if the salary payment simply arrives later in the day than the first try at the DDs. But if it arrives a day later then the OP is stuffed, which is why I'd leave a gap - we can argue about how big that gap should be, but I wouldn't rely on money arriving on a given day.

In this instance the OP suggests the payment will be arriving on the same day as per the thread title.

agrinnall

stclair wrote: »

In this instance the OP suggests the payment will be arriving on the same day as per the thread title.

Yes, under normal circumstances, but it's the abnormal circumstance that the gap is designed for.

Westie983

DD can leave an account any time from midnight, so the money needs to be in the account the day before to make sure no charges are applied for failed DD, or overdraft fees, Credits into the account are applied till 10am on the day of the credits...

so the OP may get charged for DD coming out of the account at midnight and the wages not hitting the account till lets say 9am.. so if there is no funds in the account to cover the DD it will fail or go through and add OD charge if applicable...

as others have said DD will try for 10 days till the funds are in the account so as the OP said this will be paid the following day if the first one fails..

as a bank cashier we always suggest to save from charges or any account issues to have enough clear funds in the account the previous day, this means before 17:00 over a bank counter or 22:49 using internet banking

pinkdalek

Why don't you ask (if available) for an overdraft for say £200 to cover it?
Perfect reason for what an overdraft should be used for.

This way if your salary is paid in later or even the following day, the bill gets paid and your overdraft is cleared with your salary. Possibly even without being charged it if occurs on the same day (dependant on the bank's T&Cs)

stclair

Westie983 wrote: »

DD can leave an account any time from midnight, so the money needs to be in the account the day before to make sure no charges are applied for failed DD, or overdraft fees, Credits into the account are applied till 10am on the day of the credits...

so the OP may get charged for DD coming out of the account at midnight and the wages not hitting the account till lets say 9am.. so if there is no funds in the account to cover the DD it will fail or go through and add OD charge if applicable...

as others have said DD will try for 10 days till the funds are in the account so as the OP said this will be paid the following day if the first one fails..

as a bank cashier we always suggest to save from charges or any account issues to have enough clear funds in the account the previous day, this means before 17:00 over a bank counter or 22:49 using internet banking

That's the whole purpose of the retry process:

http://www.paymentscouncil.org.uk/media_centre/press_releases/-/page/3083/

http://www.moneysavingexpert.com/news/banking/2014/08/payment-bounced-youll-soon-have-a-second-chance-to-avoid-fees?_ga=1.82826966.1536788289.1422552910

Providing the customer meets the cut off time of the given bank they will not incur any charges.

As an example my Halifax DDs debit my account around 12.30am providing I put my account into order by 15.30 I don't incur any charges.

Westie983

This would only be the case if you have a OD, if you dont have a OD, then the payment will either fail or go through and yes, by the time the credits hit the account no charges, but if there is no OD, then the payment may not go through...

hence why payments into the account before the DD is due will make sure they dont fail or applied charges if funds are not credited by 3:30